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Commercial Loan Default

How to Settle Your Business Debt on Favorable Terms (and Get Rid of Aggressive Collection Agents)

If your business has accumulated debt and you find yourself struggling to pay down that debt, you are not alone. Almost every company goes into some degree of debt to fund day-to-day operations, acquire assets, and pay for business-related improvements, which is especially true for businesses during their start-up phases.

If your company’s commercial debt is interfering with your ability to keep your business running, you have alternatives that you might want to consider before turning to bankruptcy, including seeking out ways to settle your financial debt for less than you might owe.

Restructuring Business Debts

The business debt settlement lawyers at McFarlin LLP have helped many business owners restructure their business debts by negotiating with creditors to eliminate a portion of the outstanding debt and then entering into an agreement for a repayment plan that is manageable.

After trying to collect business debts over a period of time — typically 90 to 120 days — a creditor may decide that the best option is to send the account to collections. The creditor will then choose to either sue the business debtor, assign the debt to a third party who has the right to collect the debt on the creditor’s behalf, or sell the debt to a commercial debt collection agency for a fraction of what is owed.

Reducing Your Commercial Debt

Our attorneys have experience in negotiating with creditors to reduce business debt as an alternative to sending the debt into collections. While there is no legal obligation on a creditor’s part to negotiate a reduced amount, many creditors recognize the benefits of working with the debtor to come to a mutually beneficial settlement. They understand that a legal battle is not only costly, but it could force the debtor into bankruptcy almost guaranteeing that they will collect little if any of the unsecured debt. Creditors also understand that selling the debt to a collection agency ends up costing them more, so they have the incentive to settle. Of course finding a solution that works for both parties is not easy, which is why you need talented and experienced business debt negotiators.

At McFarlin LLP, our business debt settlement lawyers understand what creditors are looking for, which companies are open to negotiation, and what types of settlements they are likely to accept. We have experience working with all kinds of creditors and often go up against the same companies time and time again, allowing us to leverage our experience on your behalf.

Fighting Aggressive Debt Collection Agencies

If the debt has already been turned over to an aggressive debt collection agency, our business debt settlement lawyers can challenge the agency’s tactics. Debt collectors will make repeated attempts to collect the debt, calling and mail the debtor in what is often a very aggressive manner. The debt collection agency may even file a lawsuit against the debtor if their aggressive tactics are not reaping results.

Often the aggressive actions by debt collection agencies are unethical or contrary to law. At McFarlin LLP, we are familiar with commercial debt collection laws and rules of ethics and work to stop these unsavory tactics in their tracks.

The Fair Debt Collection Practices Act (FDCPA) protects consumers with outstanding debts by prohibiting debt collectors from harassing debtors. While the FDCPA does not apply to commercial debt collectors, the activities of commercial debt collection agents may still be subject to regulation.

The agency may violate the standards of the Commercial Collection Agency Association (CCAA), which is responsible for supervising the activities of commercial debt collectors. If the agency is certified by the CCAA and wants to keep that credential, they must adhere to the CCAA’s ethics. In addition, there may be state licensing requirements and regulations that the debt collection agency must follow.

The attorneys at McFarlin LLP know how to protect your interests and fight for your rights, especially when there is a case to be made that the debt collection agency violates ethical or licensing standards.

Contact McFarlin LLP Today to Settle Your Debt

If your business is struggling with commercial debt, the attorneys at McFarlin LLP can help. We will protect your interests while working with your creditors to find the best solution possible to settle your debt through a repayment plan that works for you.

For a free consultation with an experienced business debt settle lawyer, call our Irvine, California office at 949-544-2640 or reach out to us online.

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