El Paso Business Debt Relief and Debt Settlement Lawyers[yoast-breadcrumb]
Need Help with Business Debt in El Paso? 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 money gets tight, it can feel overwhelming. If your El Paso business is struggling with debt, you’re not alone. Lots of great companies have found themselves in debt and needing help from time to time.
The good news is, there are options for getting debt relief and settling your business debts. With the right help, you can get your finances back on track. This article will walk you through what business debt relief and settlement is, your options in El Paso, and how to choose the right approach for your situation.
What is Business Debt Relief & Settlement?
Business debt relief refers to strategies that reduce or eliminate some of what you owe. The main options are:
- Debt consolidation – Combining multiple debts into one new loan with lower monthly payments
- Debt settlement – Negotiating with creditors to pay a lump sum that’s less than what you owe
- Bankruptcy – Using bankruptcy court to eliminate or restructure debts you can’t pay
Debt relief can give struggling companies breathing room to get back on their feet. Settlements typically reduce debt by 25-50%, while bankruptcy wipes the slate clean. The right option depends on your specific situation.
Your Debt Relief Options in El Paso
Luckily, El Paso has experienced business debt relief lawyers and consultants who can walk you through the pros and cons of each approach. Here are some of the main firms to know:
- ABC Debt Relief – Well-known nationwide company with local office in El Paso. Experts in negotiating debt settlements. Fees are 15-25% of enrolled debt.
- Gomez & Associates – Boutique El Paso firm focusing on debt consolidation and Chapter 11 reorganization. Free consultations.
- Schwartz & Dodd – Bankruptcy attorneys with decades of experience helping El Paso businesses file Chapter 7 or Chapter 11.
Reputable firms like these follow FTC telemarketing rules and are upfront about fees. Be wary of any company that charges substantial upfront costs or guarantees certain outcomes.
How to Choose the Right Debt Solution
With the help of an advisor, you’ll want to weigh factors like:
- Your current cash flow and ability to pay
- How much you owe to various creditors
- Your assets that creditors could claim in bankruptcy
- Your business goals and timeline
- Tax implications
For example, debt settlement may be a good fit if you have some cash reserves but can’t afford monthly payments. Bankruptcy makes sense when debts totally overwhelm your assets. Consolidation helps if cash flow is tight but you can handle lower payments.
An attorney can also advise whether you qualify for Chapter 7 liquidation vs. Chapter 11 reorganization based on your specific circumstances.
What to Expect in the Debt Relief Process
Once you pick an approach, here’s a general idea of what to expect:
- Apply for new consolidation loan, allowing time for approval
- Halt payments to existing creditors when approved
- Creditors transfer balances to new consolidated loan
- Make monthly payments on consolidation loan
- Stop paying creditors so accounts fall behind (more incentive to settle)
- Creditors may take collections actions like calls or lawsuits
- Work with advisor to negotiate lump sum settlements
- Settlement funds held in dedicated account
- Pay negotiated settlements as deals are reached
- File petition and forms with bankruptcy court
- Automatic stay halts collections, foreclosures, etc
- Trustee liquidates nonexempt assets in Chapter 7
- Get discharge of eligible debts near end of case
- Make court-approved payments in Chapter 11
The process takes several months to a year. Having a lawyer to handle details and negotiations can really help during this stressful period.
Common Concerns & Defenses Against Creditors
Some common concerns that hold business owners back from seeking debt relief include:
- Harming credit score – Debt settlement may hurt your score, but often less than ongoing late payments. Bankruptcy damages credit but wipes the slate clean.
- Losing collateral – If you want to keep pledged assets, you may need to become current on secured debts.
- Tax consequences – Settled debt may be taxable income. Bankruptcy liquidation can trigger tax liability for debt discharge.
Meanwhile, defenses lawyers use against aggressive creditors include:
- Violation of Fair Debt Collection Practices Act
- Errors in amount owed or collection practices
- Unenforceable contracts due to fraud, duress, or unconscionability
- Expired statute of limitations on debt
An attorney can evaluate if these apply and fight improper collections so you can focus on the future.
Get Help from El Paso’s Top Debt Relief Experts
The bottom line is – if debt is threatening your El Paso business, take heart because there are viable solutions. With the help of experienced local advisors, you can negotiate settlements, restructure payments, or get a fresh start.
Don’t wait – the sooner you start, the more options you’ll have. Set up a free consultation with a business debt relief law firm to discuss your situation today. They can help you analyze the pros and cons of different approaches and protect your interests with creditors. You’ll breathe easier once you have an action plan to get your finances back on track.