Business Debt Questions

New York City Business Debt Attorneys

We know how difficult it can to get the facts straight regarding business loans and other debts. That is why we've created this library of frequently asked business debt questions. Check back for regular updates. If there are other questions that you would like to see answered below, let us know. Please keep in mind that the information is not legal advice, and it's applicability is limited to business debts in New York.

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  1. Are lawyers able to settle merchant cash advance? Business debt relief options are analyzed on an individualized case-by-case basis. While our lawyers have been successful in restructuing business debts and negotiating reductions to merchant cash advance, we don't know what will be available until we start communicating with the lender or their business debt collectors. The likelihood of a resolution being reached oftentimes increases in situations where the business is on the brink of insolvency, and the financial hardship can be made apparant.
  2. How much can a business loan be reduced? Although we've achieved savings for business loans as high as 85% off, the results vary. From time to time, we share highlights of certain results and achievements. Those example results show what we were able to achieve under that client's particular situation and timing. Prior results are truly not indicative of future performance. Our team will use their skills and experience to act strategically when conducting business loan negotiations, so as to maximize the potential results for each and every client.
  3. Do we help businesses outside of New York? Yes, our business consulting team assists business owners with non-legal services, both inside and outside of New York. It is important to understand this distinction. Our lawyers are licensed to practice law only in the states of New York and/or New Jersey. As such, we do not provide legal consultations, legal advice, or any legal services outside of NY & NJ. Every aspect of our business debt negotiations program is limited to services which are non-legal of nature. For the same reason, the program is limited to debts which are not in litigation status, and any debts that enter litigation status while in the program will be promptly unenrolled. However, separate and apart from consulting services offered in relation to business debt reduction, our law firm does provide defense from lawsuits brought for business loans and merchant cash advance in New York. Legal representation and/or assistance with litigation is subject to a separate contract and discussions with an Attorney, and such assistance is not made in connection with our business reduction consulting services.
  4. What is a personal guarantee? This is a document which makes the business owner or officer liable to repay the business debt in the event of default. The guarantor can be subject to personal collection, a lawsuit, and their assets may be subject to seizure if a judgment is obtained against them.
  5. Are there lawyers to reduce business debt? Our lawyers are skilled in navigating the resolution options available given the type of debt at hand. If the business has hardship, many business debts can be reduced in a settlement through careful negotiations. For the business debts that cannot be reduced, many times they can be restructured so that the payment are lower and more affordable to the borrower.
  6. Are there options to fight a business loan lawsuit? When faced with legal action, an experienced business loan lawsuit defense lawyer can make sure that a comprehensive response is submitted timely, to ensure that your defenses are well-stated, and to protect you from a court judgment. As with any lawsuit for breach of contract, if the Plaintiff's evidence is sufficient, the borrower may wish to engage in negotiations to settle the business loan lawsuit.
  7. What are the differences between consumer debt and business debts? Most consumer credit cards will not review the account for legal action until after the debt is charged-off, which is typically at least 6-months from the date of the last timely payment. With business loans, vendor debts, or debts owed on a business cash advance, the lender may choose to litigate much sooner. And in situations where the business debt has a personal guarantee, the lender may pursue recovery in court against both the business and the guarantor.
  8. Can I avoid filing bankruptcy for business debts? By restructuring the business loans, or settling the business debt, one might be able to avoid filing for bankruptcy. A common misconception is that by filing for bankruptcy on the business, the borrower will be discharged of the liabilities on the business debts, and can therefore avoid filing personal bankruptcy. However, many times, the opposite is true. In a situation where the business is insolvent, lacks assets, and/or is otherwise closed, and the business debts are personally guaranteed, it may be more important for the borrower to focus on addressing their personal liability, whether by settling, restructuring, or seeking a discharge by filing for personal bankruptcy.
  9. Business Debt Negotiation. The first steps to determining whether the terms to a commercial debt can be negotiated, you'd need to determine the classification of the debt and it's current status. Furthermore, understanding whether you are obligated under a personal guarantee, and the ramifications of such a liability, are important to determining the best course of action to protect you.
  10. What are my options to negotiate business loan reductions? As with any debt, the creditor may be open to accepting repayment under an modified payment arrangement, or even reducing the loans in a settlement if they have reason to believe that they will have difficulty recovering the full balance. As a general rule, a business loan must be in default before starting the negotiations. It's important to negotiate a resolution sooner rather then later, otherwise the business creditor may elect to bring a business loan lawsuit.

Effective Legal Representation For New York Business Debts

At the Law Office of Simon Goldenberg PLLC, our lawyers have studied the nuances of debt laws so that we can provide business owners a comprehensive set of resolution options. Whether you're seeking business debt defense, cash advance settlement, or you want to fight a lawsuit brought by a business vendor, our New York City attorneys can provide you with competent representation and help navigate the process.

Call Our Business Debt Relief Lawyers - (888) 301-0584

Get in touch with us today to schedule your complimentary initial case consultation with our experienced business debt attorneys in New York City. Serving Brooklyn, Queens, Bronx, Staten Island, Long Island, and the entire New York State. Call the Law Office of Simon Goldenberg, PLLC today!

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The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.