Business Debt Settlement Options for Small Companies and Corporations
New Jersey Debt Settlement Attorney Provides Solutions
There are many reasons why a small business might fall into debt. For example, it can be difficult to keep up with payments on loans if you have fewer expected customers. The same goes for if your clients are late in paying you for your services. Sometimes, a new business or new product can prove costlier than expected. This may then leave you with more debt than your business can handle. However, regardless of whether your business is a corporation, limited liability company or sole proprietorship, you have options. These options may include business debt settlement, negotiation or possibly even bankruptcy.
The business debt settlement attorneys at Ast & Schmidt, P.C. understand the challenges you face as a business owner. We are a Morris County debt relief law firm, which means we are committed to helping you find debt solutions tailored to your individual needs. We work with clients across New Jersey, including residents of Mount Arlington, Denville, and Boonton as well as those who live in Sussex County, Union County and all the surrounding areas.
How Can I Get My Business Out of Debt?
Getting your business out of debt may depend on what kind of business you own. It can also depend upon whether or not you want to keep your business open. If your business is a corporation or limited liability company (LLC), you generally cannot be personally responsible for the company’s debt (with some exceptions). On the other hand, if you own a sole proprietorship or have a partnership, your creditors may be able to seek collection from you personally. In doing so, they may place liens against your personal property, like your house and your bank account, to try to obtain the money owed by the business.
If you cannot rehabilitate the business due to defaulting on business, commercial loans or trade creditors, the first step toward a fresh financial start may be to close the business. Once you do that, you have many more possibilities for debt relief with the creditors. If you want to keep your business running, there are still options. However, these options may be more limited.
What Are My Business Debt Relief Options?
There are several different ways to manage or reduce your business debts. The best debt solution for you will depend on your unique circumstances and financial situation. Some of your options may include:
- Commercial Debt Settlement – You may be able to negotiate with your creditors to lower interest rates or even lower the total debt you owe through commercial debt settlement. Generally, your business bankruptcy lawyer negotiates with creditors and offers a lower lump sum payment to resolve total debt.
- Selling Your Business. Depending on your circumstances, you may be able to sell your business or business assets to another person or company. You can then use the proceeds to pay off your business debt.
- Business Liquidation. If your business is not making a profit, you may cut your losses and repay business debts by closing your doors. You can sell your equipment, remaining stock and any other assets.
- Chapter 7 Bankruptcy. If you are personally liable for your business debts, Chapter 7 bankruptcy may help you eliminate them. You will almost certainly have to close your business and liquidate your non-exempt business assets to pay as much of your debt as you can.
- Chapter 11 Bankruptcy. Chapter 11 is a type of bankruptcy sometimes called a reorganization or restructuring plan. For Chapter 11 bankruptcy, you need a business bankruptcy lawyer to negotiate with creditors and propose a new business plan.
- Chapter 13 Bankruptcy. Chapter 13 bankruptcy is a personal bankruptcy. Corporations and LLC’s are not eligilbe to file it. If you are personally liable for your business debts, Chapter 13 bankruptcy provides for a repayment plan in the Bankruptcy Court. This then allows you to pay off some of your debt over three to five years.
Get Business Debt Help in a Free Consultation at Our Morris County Law Office
If you are a business owner fighting too much debt, our team of debt settlement attorneys can help. Whether you need a business bankruptcy lawyer to help you with Chapter 11 bankruptcy or business debt settlement, or you simply want to know what bankruptcy alternatives are available, we can answer your questions.
No matter your financial situation, our Morristown legal team will help you find a fair business debt resolution. Contact us online or give our bankruptcy law office a call to schedule a free consultation so we can help you find business debt relief.