Pay Off Business Debt
Business Debt Management - Business Debt Management Restores Focus
For whatever reason, the business assets are not enough to pay the monthly bill and business debts are beginning to accumulate. And even worse, you, as the head of this business, now find that you are spending more time thinking about business debt management than about the other aspects of the business. You may find yourself spending the hours in the day that should be focussed upon attracting new customers mired in the quagmire in debt negotiations with creditors. Or the hours you usually provide customer service and backup to your existing customers are being eaten away while you try to collect payment for services that have been provided. In either case, your focus is upon business debt management and not upon your business. With your attention divided in this way, it will not be long before serious business help will be necessary.
Now is the time to browse the Internet for business debt management. There are many services listed that offer counselling regarding business debt management, all forms of business help, solutions for resolving commercial debt, and who offer programs that result in business debt settlement. A business debt management firm will assess the business, the amount of debt and the ratio to assets. Most business debt management consultants will say that bankruptcy is almost never the correct step to take. It further weakens the local business fabric by unloading more unpaid accounts upon it. Furthermore, it is becoming increasingly difficult to get debt relief through declaring a business bankruptcy.
The business debt management consultant will come up with a plan that will reduce the amount of time that you, as the head of the business will have to spend on the worrisome tasks of dealing with your creditors and with those individuals who owe your business. The business help that the consultant provides will be aimed at paying off the commercial debt of the business in the quickest way that will still allow the business to keep running. The business help plan may take the form of business debt consolidation or business debt settlement, or a combination of both, depending upon the individual situation created by the business and its creditors. The debt management consultant will negotiate with the business creditors to develop a new payment plan that is tailored to a budget that is based upon the business assets. Often this payment plan will be accompanied by an interest rate that is reduced for some or all of the payment period.
The business debt management plan will certainly involve collecting at least a part of the debts owed to the business as well as paying those owed, over time. The consultant may offer quite generous terms to the clients who owe your business to recoup some payment assets. The business debt management consultant will put your creditors minds at ease and will institute a plan that will ensure payment in full of the business debts. Most importantly, the business help that you will receive from the business debt management firm will return your focus to the details of growing and maintaining your business, where it belongs.
Check these links to learn more:
http://www.curadebt.com/about.asp
http://www.curadebt.com/settlement/business-debt-negotiation/business-debt-settlement-negotiation.asp
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Debbie White is a contributing writer to http://www.curadebt.com and is currently writing some special articles to guide businesses on how to manage debt and avoid bankruptcy. For Business Debt Information and Debt Help Consultation, call toll-free 1-877-850-3328.
About the Author
Debbie White is a contributing writer to http://www.curadebt.com and is currently writing some special articles to guide businesses on how to manage debt and avoid bankruptcy. For Business Debt Information and Debt Help Consultation, call toll-free 1-877-850-3328.
A New Approach to Debt Recovery and Business Debt Collection for Smes and Limited Companies
Having read recent articles regarding late payments to small businesses I would like to draw readers' attention to our web site www.due2pay.co.uk.
I used to run a small business which became a victim of late paying customers, a problem which became so bad it ultimately forced the closure of my company. My bank manager at the time told me it would make me a stronger business person in the long run, which was not helpful at a time when I could have done with a bit more help and support before the issue became a major problem for my business.
I like many small business owners just do not realise how big a problem is until it is too late.
I dusted myself down and decided to start up again with the bank managers words of wisdom ringing in my ears. I vowed I would retain as much cash within the business as possible and be more proactive in dealing with the company’s debtors.
This philosophy served me well for several years and I was able to build a small but strong business serving well known customers and not being beholden to the banks for support.
Unfortunately, during the present economic crisis, whilst late payment is still a major issue for businesses as cash is harder to obtain, more and more businesses are resorting to other methods of squeezing their already hard pressed suppliers by,
1) Using late payment as a way of funding their own cash flow.
2) Demanding discounts on already agreed prices.
3) Demanding settlement discounts on already agreed prices.
4) Imposing retrospective discounts on goods already delivered.
5) Cancelling orders for goods already manufactured but not delivered.
6) Forcing extended credit terms on suppliers.
All of my major customers are demanding substantial discounts or extended credit terms; some suppliers are also imposing non negotiable discounts on us on top of the huge increases in energy bills. It does not take a genius to work out the massive impact this will have on our profitability and survival.
If a small well run business eventually runs in to trouble, what hope is there for less well managed companies? The burning issue with me is that larger companies hide behind a veil of anonymity when conducting these dubious business practices. No one other than the incumbent suppliers knows that a particular company is abusing its suppliers.
I have just launched an internet based company www.due2pay.co.uk to help businesses secure payment for undisputed overdue invoices before it has a terminal effect on their cash flow. If the invoice is not paid direct to the supplier, after a request from DUE2PAY, details of late paying companies will appear on our site. This information will then be made available to the wider business community allowing a bit of transparency into which these late paying companies are and giving suppliers more up to date information when they are making decisions on whether to deal with a particular company. We do not intend to replace normal debt recovery and business debt collection agencies which are well established methods. We are a powerful addition to the whole process, we offer the chance for suppliers to speak with each other.
When debts are listed on our site, (debts must not be disputed) two major things happen. The customer is emailed and faxed asking for payment, you can have it sent to the buyer and the MD if you wish. Only when they don't pay (after 14 days) will the information go live. To be fair to the late payer he has has the option to mark the debt as disputed as there could be geniune reasons which have not reached the seller. Only the seller and the buyer see the amounts involved, other members do not see the amounts involved. The site is purely factual 'someone is paying invoices late', there is no opportunity for free text. Member details are anonymous on the site. Members may if they wish exchange contact details through the site message system.
We do not take a commission of invoices, we do not enter into negotiations, and we insist that any invoice listed is not in dispute.
If you would like to know more please contact me on 07740708174 or email to info@due2pay.co.uk and I would be more than happy to discuss our company with you. www.due2pay.co.uk
Kind regards,
Colyn Stevenson
About the Author
Filed under Debt Settlement by on Aug 2nd, 2008. Comment. 
Who May File Chapter 7 Bankruptcy
Bought a car from a dealer who didnt pay off previous lien then filed Chapter 7 Bkrupcty. Can we do anything?
We purchased a like new 2008 car that was a trade-in from a supposed reputable dealer in NC. It was paid for in full at the time of purchase. The dealer kept putting us off regarding the title, then filed Ch. 7 bankruptcy and closed his doors. The dealer had not paid off the previous lien to the bank and so now it appears we have spent a whole lot of money for a car that we can't get title on and may have to give back to the bank that held the lien for the previous owner. We were told we might be able to file as Bona Fide Purchasers under the UCC - something about the entrustment doctrine. Any ideas about that or any other way we can keep our car???
I think that your in for a lot of hard work-paperwork-Phone calls. But In the end It will probably be worth It. First thing I would do is find out who the prior owner is/was. Now you can start by giving them both 1) a call.2) a certified letter. In the letter explain what happened. Apparently they traded the car in to ****** Dealership on __/___/2009
It appeared as though this dealer was/is going to pay off the loan balance,etc. (Not knowing what state the prior owner resides in you don't know If the title went originally to the customer (Prior owner) or the bank. Now, If they would help you by ordering a duplicate title, this would be great to start. Now, as of yet you haven't determined if the dealer paid off the loan before closing the doors. If they did (Not probable) then all you would need is a "Letter of No Interest" from the bank showing that there Interest in this car has been satisfied. If they didn't now you have a big problem. The Bank will not care,they want there money. If you wish to get further on this email me when you can and we can go a little further. You might have to start legal action against the bankrupt dealer. File your amount with an Attorney, again explaining what happened. Or repay the prior owners loan (very distasteful, indeed. (You would be paying twice and now the car wouldn't be worth It. Good Luck
Requirements to File Chapter 7 Bankruptcy
Everyone has the privilege to file bankruptcy. They can file as many times as they want but they do not exactly get the result that they wanted. There are certain requirements and qualifications to be able to file bankruptcy and also there are specific guidelines to follow to be able to file a certain type of bankruptcy. Among the types of bankruptcy, chapter 7 is the most difficult to file. It is because chapter 7 is a great way to get you out of debts as quickly as possible without ever having to worry about debts afterwards. The only exchange for having chapter 7 as your type of bankruptcy is that, a debtor must give up all his properties that are considered as non-exempt which will proceed to the process of liquidation.
What are the requirements to file chapter 7 bankruptcy under the new bankruptcy law? The new bankruptcy law has made it hard for anyone to be eligible to file bankruptcy. This new law under the Bankruptcy Abuse Prevention and Consumer Protection Act or BAPCPA commence on October 2005. The new regulations specified in this law indirectly or directly promote chapter 13 than chapter 7. These added requirements to file bankruptcy are; you need to attend a credit counseling session that is provided by a credit counseling agencies, you need to submit a documented attendance that you attended the whole program of credit counseling sessions. Other than that, credit counseling agencies provide a repayment plan which is a leads to a chapter 13 filing.
Another important requirement to file chapter 7 bankruptcy is to pass the means test. This is the test that determines the eligibility of a person to file bankruptcy by accessing data base on your personal financial structure. The result will be either a passing mark, which means that a person has no other means of repaying his debts and if forced will cause undue hardships to him, or a failing mark which means that a person has sufficient income that exceeds his expenses and will be a able to afford to pay his debts, then the person can file chapter 13, which is a repayment plan.
Failing the means test is not the end. You can use timing to become eligible to file a chapter 7 type of bankruptcy. Do not rush to the bankruptcy court and file your papers knowing that you will fail the means test. If you foresee that you income will drop down to a level where it is considered below average income according to the state that you live in, then wait for that moment to come and file your bankruptcy. More likely, you will become eligible. People who hold an ongoing chapter 13 type of bankruptcy can change to a chapter 7 if their income had significantly drops as well. All they need to do is get the approval and protection of the bankruptcy court.
There are many ways to find out what is the right one for you to file your bankruptcy without spending a lot of money. I suggest hiring a petition preparer or a bankruptcy lawyer to prepare your papers. You only pay them their flat fee and do the rest of the way by yourself. For more support on how to file bankruptcy, visit the link below.
About the Author
Steve Young is the author of The #1 Secret On How To File Bankruptcy. To get your free CD on How to File Bankruptcy Without an Attoney, go to www.onlinebkassist.com
Filed under Debt Settlement by on Aug 2nd, 2008. Comment.
Aeon Credit Services Malaysia
Filed under Debt Settlement by on Aug 3rd, 2008. Comment.
How To Collect Debt
Can debt collecters collect money from debts from someone who is in prison?
I know someone who is in prison who took out an $18,000 loan for a car months before he was arrested and sentenced. The federal government took the car away and it became federal property. I have some debt collectors calling my house and I informed them that he is in prison and there is no way they can collect debt from a man behind bars even if they try to sue him (how is he going to appear in court?) I also informed them that after 3 years, debts can't be collected any longer due to the Fair Debt Collection Practices Act. Anyone out there been through what I am going now?
Well, I both work in a prison, and I have been through debt collection.
First off, there is NO time limit that a debt can be collected on. Only on how long it can be reflected on your credit report. A collection agency can still come after you for debts YEARS after you first went delinquent. The only time someone can NOT collect a debt is if you have an injunction filed due to Bankrupty.
Second, debts CAN and ARE collected while in prison. All prisoners have an account with the prison. Prisoners can have jobs (generally only making less than a dollar an hour) and prisoners get gifts of money from family and friends that go into their account. This allows prisoners to purchase items from the "commisary" (snacks, toiletries, etc), cable tv, postage, and other things. When a judgement is presented for debts, and the prisoner is court ordered to pay it, a certain percentage of his prisoner's account is taken away. Let's say grandma gives her inmate grandson $50 for christmas so he can buy some snacks from commissary, the prison can deduct up to 50% to go towards his debts.
Prisoners go to court all the time while in prison. We either transport them to all of their hearings via armed escort or we now sometimes use video teleconferences where the prisoner sits in a cell with a video camera and tv.
Company Voluntary Arrangement business - how can we collect debt?
Company Voluntary Arrangement business - how can we collect debt?
If a company is struggling to pay its debt, it may be at risk of becoming insolvent and going into liquidation. One method of avoiding liquidation is Company Voluntary Arrangement (CVA). This legal process can reschedule the company's debts allowing the business to avoid liquidation (or winding up) and continue to trade. The arrangement involves the company's creditors accepting a reduced sum in settlement of their outstanding debt which is then payable in instalments usually over a 3-5 year period. Once the company voluntary arrangement is completed, any outstanding debt is written off. This leaves the company in a position where it is debt free and can continue to trade without the burden of its legacy debt.
A company voluntary arrangement clearly benefits a company struggling with debt because it remains solvent and in a position to trade on into the future. Creditors also benefit as they will be paid a portion of the debt they are owed which will normally be greater than that which they would receive if the company was liquidated. Creditors also have the ability to continue to maintain trade with the company, albeit that this may well be on a cash basis moving forward.
For a Company Voluntary Arrangement to be in place, an insolvency practitioner must produce a proposal of the arrangement for all of the creditors to review. A creditor's meeting is held where each creditor is able to cast their vote for or against the proposal. If 75% of the value of the creditors who vote agree to the proposal, then it becomes legally binding on all of the creditors whether they voted yes or not. This means that none of the company's creditors will receive full payment of their debt, and none of the creditors are allowed to take any further action against the company to try and recover any more of their debt.
Insolvency Service figures for Q2 2009 show an increasing number of companies facing insolvency and that liquidations rose by 40% over the same quarter in 2008. Therefore it is more and more likely that businesses will face bad debts because their customers go into liquidation, a company voluntary arrangement or administration.
Can you challenge the Company Voluntary Arrangement?
If one of your customer's enters into a company voluntary arrangement but you believe that you were not made aware of the creditor's meeting and therefore did not have a chance to vote, there is unfortunately very little that you can do. The insolvency practitioner is duty bound to make all reasonable efforts to contact all of the company's creditors. However, they will generally operate on the "proof of posting is proof of delivery" rule. As such, if they believe they sent notice to all known creditors, this will generally be seen as enough of a reasonable attempt to contact all creditors.
It is possible for a creditor to challenge a Company Voluntary Arrangement. However, they would have to show their interests had been unfairly prejudiced or there had been some material irregularity at the creditor's meeting. The reality is that, unless the aggrieved creditor's vote, if it had been cast, would have resulted in a different outcome of the creditor's meeting, the challenge is unlikely to succeed. In general, the only time when a debt would not be bound into an agreed CVA is if it was incurred by the company after the CVA was approved. The creditor in question is then at liberty to take legal action against the company to recover their debt in the normal way.
Unfortunately, with the difficult trading conditions in which many companies are finding themselves, the use of procedures such as company voluntary arrangements is likely to become increasingly common. This is bad news for creditors who will find themselves with unpaid accounts. However, a reduced return within the parameters of a company voluntary arrangement is arguably better than the zero return which is the likely outcome for creditors if a company is put into liquidation.
About the Author
Derek Cooper is Managing Director of Cooper Matthews Limited and a member of the Turnaround Management Association UK.
Cooper Matthews specialise in Business Recovery Services Advice and Business Refinancing, offering straight forward insolvency advice for businesses with financial problems. They have significant experience in working with small to medium sized businesses.
To find out more visit http://coopermatthews.com/company-voluntary-arrangement.html
Filed under Debt Settlement by on Aug 3rd, 2008. Comment.
Card Consolidators Credit Debt
looking for a good credit card debt consolidator.?
looking for someone or some company that has a little more compassion trying really hard to pay off creditors already have garnishments cannot live on what i bring home need help.
I would suggest you to join a debt settlement company instead of a debt consoliation.
The main difference of settlement and consolidation is that a settlement company will negotiate with your creditors and bring down your principal debt amount by around 30% to 70% with NO interest rates and low monthly payments.
Whereas a in debt consolidation you will have to pay the full debt amount but u can make minimum monthly payments. They will also ask for a security of assets in order to join their program.
In a debt settlement company there are no such issues. They will also customize the monthly payments as to how much you can afford monthly.
Check this company. I have had the same situation and they helped me out.
http://www.debtfreeafterall.com
Good Luck
Filed under Debt Settlement by on Aug 3rd, 2008. Comment.
