Dallas Business Debt Relief and Debt Settlement Lawyers[yoast-breadcrumb]
Need Help with Business Debt in Dallas? Here’s What to Know About Debt Relief & Settlement
Running a business is tough. There’s so much to juggle – employees, customers, suppliers, regulations, and of course, finances. When cashflow starts running dry, it’s easy for businesses to rack up debt. Before you know it, you’ve got creditors calling nonstop and threatening lawsuits. What do you do?
If this sounds familiar, you’re not alone. Plenty of Dallas business owners have found themselves in debt they can’t repay. The good news is, you’ve got options. Debt relief and settlement can help you resolve business debt and get back on stable ground.
How Debt Relief & Settlement Help Dallas Businesses
These strategies help you:
- Lower debt balances
- Consolidate multiple debts into one monthly payment
- Stop creditor harassment and lawsuits
- Avoid bankruptcy and resolve debt out of court
Keep reading to learn more about business debt relief and settlement and whether they could help your Dallas company.
What is Business Debt Relief?
Debt relief refers to strategies that reduce, restructure, or consolidate your business debt to make it more manageable. Options include:
This rolls multiple debts into one new loan with lower monthly payments. You can also convert short-term debt into a long-term loan to lower payments.
Also called debt rescheduling, this lets you renegotiate repayment terms with creditors. You may get lower interest rates, reduced monthly payments, or extended repayment timeline.
Debt Management Plans (DMPs)
A DMP works with your creditors to lower interest rates and create one monthly payment you can afford. Nonprofit credit counseling agencies often arrange DMPs.
The right business debt relief option depends on your specific situation. An experienced Dallas debt relief lawyer can help you review the pros and cons of each.
What is Debt Settlement?
Debt settlement, also called debt arbitration, lets you settle debt for less than you owe. Here’s how it works:
- Stop making payments to creditors
- Allow debt to become delinquent
- Debt settlement company negotiates with creditors for reduced payoff amount (often 50% off or more)
- You pay lump sum settlement amount
- Creditor considers debt resolved
Because you stop paying while negotiating settlements, this risks creditor lawsuits. However, a good debt settlement lawyer can help shield your business assets.
Key Benefits of Business Debt Relief & Settlement
Relief and settlement offer many advantages over bankruptcy:
- Avoid the stigma and harm to business reputation caused by bankruptcy
- Prevent liquidation of business assets to repay debts
- Owners/partners stay in control instead of court-appointed trustee
- Resolve debt out of court, privately
- Debt discharged at end; no need to repay
- Lower credit score impact than bankruptcy
For Dallas business owners struggling with unmanageable debt, relief and settlement are game-changing strategies.
Common Defenses Against Creditor Lawsuits
If creditors sue your business over unpaid debt, certain defenses can help dismiss or settle cases favorably. Common defenses include:
Statute of Limitations
Debt that is too old becomes time-barred. In Texas, statutes of limitations on debt range from 2-4 years. If creditors waited too long to sue, the court can dismiss the case.
If you weren’t properly served the lawsuit documents, the case can get thrown out. Defendants must receive proper notice.
Lack of Validation
The law requires creditors to validate and verify debts they try to collect. If they can’t provide proof you owe the amount claimed, the court may dismiss the case.
Unenforceable Contract Terms
If a creditor’s contract includes illegal or unfair terms, that can invalidate the debt. This depends on the specific contract language.
An attorney can review your situation and raise the best defenses to fight creditor lawsuits. Don’t let unlawful collection efforts go unchallenged.
How Dallas Debt Relief Lawyers Can Help
Trying DIY debt relief rarely goes smoothly. Creditors resist cooperating and often slam business owners with lawsuits. You need an experienced debt relief attorney on your side.
Attorneys from companies like Delancey Street specialize in business debt issues. They help by:
- Negotiating with creditors for optimal settlements or restructured repayment plans
- Crafting affordable debt management plans
- Defending against creditor harassment and collection lawsuits
- Advising on debt relief options to find the best fit
- Protecting your business assets from liquidation
Rather than tackle business debt alone, leverage the expertise of a debt relief lawyer. They level the playing field against creditors and help Dallas business owners regain financial control.
If debt is dragging down your Dallas company, don’t wait to seek help. Business debt relief and settlement offer real solutions. Partner with a trusted attorney to resolve debt and get your finances back on track.