Need Help with Business Debt in Lubbock, Texas? Here’s What to Know About Debt Relief & Settlement Lawyers

Running a business is hard work, and sometimes unexpected expenses or slow periods can leave you strapped for cash. If business debt is piling up in Lubbock, you may be looking for solutions like debt relief or settlement. But how do these options work, and when should you contact a lawyer? This article from Delancey Street Financial breaks it down in simple terms.

First Things First: Don’t Panic. Take a Deep Breath.

It’s totally normal to feel stressed and overwhelmed when business debts start to snowball. But don’t spiral into full panic mode just yet. The first step is to get organized so you can see exactly what you’re dealing with. Pull together records on all outstanding business loans, credit cards, accounts payable, taxes owed, and anything else you haven’t paid. Seeing it all in one place can help you strategize better.

Next, figure out which debts and obligations are most urgent. Taxes, payroll, and business loans should take priority, since falling behind on those can really get you in hot water. Supplier invoices and credit card debt may have more flexibility in the short-term. Basically, triage your debts so you know what needs immediate attention vs. what can wait a bit.

Once you’ve sorted out your debts, take a deep breath. Freaking out won’t help anything. Approach the situation calmly and make a plan. If it seems totally unmanageable, don’t hesitate to call in reinforcements.

When to Contact a Debt Relief Lawyer in Lubbock

If you’ve tried negotiating with creditors on your own without success, it may be time to call a debt relief lawyer in Lubbock. An experienced attorney can help in several ways:

• Negotiating debt settlements: An attorney can negotiate directly with creditors to reduce what you owe. Creditors are often more willing to make a deal if a lawyer is involved.
• Setting up repayment plans: If you can eventually repay debts but need reduced payments now, a lawyer can work out an acceptable repayment schedule.
• Considering bankruptcy: While bankruptcy severely impacts your credit, it may be a last resort if you truly can’t pay. A lawyer can advise if it’s the right move.
• Protecting your assets: Attorneys can find ways to exempt key business assets so you don’t lose everything.
• Dealing with lawsuits: If creditors sue you over unpaid debts, you need legal representation to respond.

Basically, a debt relief lawyer becomes your advocate and strategist. They know all the options and can get you the best possible terms. Don’t wait until you’re drowning – it’s smart to contact an attorney as soon as you foresee trouble.

What is Debt Settlement Exactly?

Debt settlement is one approach attorneys use to resolve what you owe. The lawyer negotiates directly with creditors to pay a lump sum that’s less than the full amount due. It’s kind of like a settlement in a lawsuit. The creditor agrees to accept the lower payment and consider the debt paid off.

This can drastically reduce what you end up paying, sometimes by 50% or more. And it can happen much faster than lengthy repayment plans. The catch is that debt settlement often wrecks your credit score in the short run. But it may still be worthwhile if you can’t keep up with monthly payments.

When Does Debt Settlement Make Sense?

Debt settlement can be a lifeline if you meet certain criteria:

• You owe at least $7,500 – $10,000 in unsecured debts like credit cards or supplier invoices.
• You have some lump sum of cash available from assets, investors, or loans to pay a settlement.
• You don’t care about tanking your credit score temporarily (1-2 years).
• You can’t realistically pay off debts through a repayment plan.

If you meet those parameters, ask your lawyer if debt settlement could work for you. Just make sure you understand the risks and long-term impacts before committing.

The Debt Settlement Process Step-By-Step

Here’s how debt settlement with an attorney usually goes down:

1. Stop paying creditors – This shows you’re serious about settling and gets their attention.
2. Open escrow account – Your attorney opens an account to hold the lump sum settlement amount.
3. Negotiate with creditors – The lawyer contacts each creditor to negotiate a reduced settlement.
4. Creditors agree to deals – With attorney representation, most creditors accept reasonable offers.
5. Settlement funds disbursed – Once terms are agreed, funds are paid out of escrow.
6. Debts considered settled – Creditors discharge remaining balances per settlement terms.

With an experienced lawyer, the process usually takes 2-3 months total. Just be prepared for legal fees on top of settlement amounts. Still, it’s often far less than paying debts in full.

Other Debt Relief Options to Consider

Debt settlement is one tool, but not the only option. A debt relief lawyer can also set up:

Debt Management Plans

If you can eventually pay off debts with reduced payments over time, a debt management plan (DMP) may help. This consolidates debts into one monthly payment, often with reduced interest rates. You pay off debts in full over 3-5 years without wrecking your credit score.

Chapter 11 Bankruptcy

For major business debts, Chapter 11 bankruptcy allows restructuring and partial debt forgiveness. You create a repayment plan under court supervision. It’s complex but allows you to continue operating.

Chapter 7 Bankruptcy

In Chapter 7 bankruptcy, eligible debts are completely discharged. You liquidate assets to pay creditors, but many debts are wiped out. However, it can be hard to retain assets critical to running your business.

A lawyer can advise if bankruptcy makes sense or if too many business assets could be lost. The impact on credit is severe but may be necessary.

Finding the Right Debt Relief Attorney in Lubbock

The attorney you choose can make or break your chances of resolving business debts successfully. Look for these traits:

• Experience with business debt relief cases
• Local knowledge of Lubbock courts and creditors
• Affordable rates and payment plans
• Responsive communication and customer service
• Support staff to handle paperwork

The Nolo directory of Lubbock debt relief lawyers is a great place to start your search. Compare several options before committing.

And don’t wait until the last minute to seek help – it’s always better to address debts proactively. The sooner you speak to an attorney, the more leverage you’ll have.

Breathe Easy Again With Debt Relief

If business debts have you losing sleep in Lubbock, know there are solutions. With an experienced debt relief lawyer on your team, you can negotiate settlements, restructure payments, and find options that work. It may take a few months of effort, but you’ll breathe easier again soon with the debt monkey off your back.

Delancey Street is always here to answer questions and point you to great local lawyers. Don’t struggle alone – help is out there! Here’s to a debt-free future.