Los Angeles Business Debt Relief and Debt Settlement Lawyers[yoast-breadcrumb]
Los Angeles Business Debt Relief and Debt Settlement Lawyers
Running a business is hard work. You put your blood, sweat, and tears into making it succeed. But sometimes, despite your best efforts, business debts can pile up and feel overwhelming. If your Los Angeles business is struggling under the weight of debt, you’re not alone. Thousands of LA business owners face financial hardship each year. The good news is, you have options to find relief. Business debt settlement lawyers can help you negotiate, settle, and even dismiss some of your business debt. This article will explain how they can help relieve your financial stress.
What is business debt relief and settlement?
Business debt relief and settlement is the process of negotiating with creditors to reduce or eliminate your business debts. The goal is to settle accounts for less than the full amount owed – sometimes as little as 10-50% of the balance. Debt settlement helps provide financial breathing room so your business can get back on steady footing.
Business debt settlement lawyers are experts at negotiating debt relief. They contact creditors on your behalf and leverage various legal arguments and strategies to settle debts. Having an experienced lawyer in your corner levels the playing field against creditors and debt collectors.
What types of business debt can be settled?
Many types of business debt can potentially be settled, including:
- Business loans or lines of credit
- Past due vendor invoices
- Commercial real estate loans
- Equipment financing
- Business credit cards
- Unpaid payroll taxes
Even very old debts that have gone to collections may still be negotiable. The key is finding the right leverage to get creditors to budge. An attorney experienced in debt settlement law will know how to craft persuasive and legally compelling arguments.
What laws and defenses can business debt lawyers use?
Business debt relief lawyers use a variety of state and federal laws, legal precedents, and defenses to negotiate debt settlements. Here are some of the most common ones:
- Fair Debt Collection Practices Act (FDCPA) – Prevents abusive collection practices
- Statute of limitations – Sets time limits on debt lawsuits
- Improper service of process – Creditors must properly notify you of lawsuits
- Unconscionable contract terms – Courts won’t enforce unfair/deceptive terms
- Usury laws – Limit excessively high interest rates
- Bankruptcy code – Allows dismissing debt in Chapter 7 & 13 cases
For example, if a debt is past the statute of limitations in California, the creditor is barred from suing to collect. An attorney can leverage this fact to negotiate a favorable settlement. The right lawyer will know which laws and defenses apply to your specific situation.
What are the pros and cons of business debt settlement?
Debt settlement can provide immense financial relief, but there are some tradeoffs to consider:
- Settle debts for pennies on the dollar
- Avoid bankruptcy
- Stop collections calls and lawsuits
- Reduce monthly payments
- Improve cash flow
- Relieve financial stress and anxiety
- Damage to business credit score
- Tax liability on settled debt
- Creditors may balk at settlements
- Debt relief scams
- Upfront and monthly fees
An experienced lawyer will explain these pros and cons so you can make an informed decision. They’ll also help ensure the process goes smoothly and no new issues pop up.
What does the business debt settlement process look like?
The specific debt settlement process can vary, but generally it involves:
- Reviewing all business debts and prioritizing accounts
- Analyzing legal defenses and settlement options
- Sending initial “demand letters” to creditors
- Negotiating directly via phone calls and letters
- Getting proposed settlements in writing
- Reviewing settlement terms closely before accepting
- Paying reduced settlement amounts from a dedicated account
- Filing for dismissal of any lawsuits
- Following up to ensure accounts are marked “paid in full”
This process takes strategic negotiating and legal expertise. An attorney experienced in debt settlement law will streamline the process and achieve optimal results. They’ll handle all the legwork while you focus on operating your business.
What should I look for in a business debt relief lawyer?
Not all lawyers are created equal when it comes to business debt relief and settlement. Look for an attorney with:
- 10+ years experience negotiating business debt settlements
- In-depth knowledge of relevant laws and defenses
- A track record of successful settlements
- No upfront fees – they collect a % of savings
- Empathy and understanding of your situation
- Strong negotiator but also ethical
- Clear communication skills
- Rapport and persistence with creditors
Also, make sure to verify they are licensed to practice law in California. Debt settlement scams are common, so vet attorneys carefully.
Could business debt settlement help my company?
If your Los Angeles business is overwhelmed by past due accounts, lawsuits, collection calls, or struggling with cash flow problems, business debt settlement may be a smart solution. An experienced attorney can relieve your stress and get creditors off your back – legally and ethically.
Don’t wait – the sooner you contact a business debt relief lawyer, the more leverage you’ll have. Settle your accounts for less than you owe, stop aggressive collections, and breathe easier as your business gets back on track. Debt settlement could be the fresh start your company needs.