Business loans can seem like a blessing when you’re just starting up or encounter a cash-flow issue and need to keep operations humming along. But, sometimes a loan isn’t enough to save the business, or the added debt burden ends up making it harder to stay profitable.
Business loans present some special complications. First, if you’re a sole proprietor or personally guaranteed a business loan, then it isn’t just the company that’s on the hook—your personal assets may be at stake as well. Second, debt collectors and debt buyers attempting to collect on business loans aren’t covered by the Fair Debt Collection Practices Act (FDCPA) and other powerful consumer protection statutes.
But, that doesn’t mean you can’t fight back. DebtCleanse offers a special membership for business owners.
Not All Business Loans are Created Equal
When it comes to debt collection processes and your options for fighting back, it’s important to understand the differences in loan types and how they impact your options. For example, a business loan may be secured or unsecured. It may be solely the responsibility of an LLC, corporation, or other legal entity, or you may be personally liable. The entity in debt—whether that’s you, a company, or both—may or may not have assets subject to collection action. And, the loan may or may not be government-backed.
Your DebtCleanse attorney will help you understand your risks, rights, and options based on the type of loan you have and the assets you have to protect.
Managing Business Loans
The fact that you took out a loan for business purposes doesn’t give it—or debt collectors—magical powers. In many respects, a business loan is no different from any other loan. Creditors and debt collectors still have to follow a legal process to collect on the debt. Many make mistakes, get sloppy, or make misrepresentations in the process that can be used as leverage to negotiate a favorable settlement or put an end to the collection process altogether.
If you’re not personally obligated on the debt and the company is insolvent, the debt collector may have no recourse at all. Unlike a personal debt, which can linger while a creditor or debt buyer waits for you to have garnishable income or money in the bank, a business debt without a personal guarantee dies with the business.
When you become a DebtCleanse member, you’ll get all of the information and resources you need to fight back—including an attorney experienced in debt collection defense.
DebtCleanse Can HelpWe’ll give you the strategies and resources you need to put debt collector stress behind you.
When you sign up with DebtCleanse, we’ll team you up with an attorney in your state. Your attorney will tell creditors to direct any future communication to their law offices. This should immediately stop harassing calls and letters.
Your attorney will also interview you and comb through your documents for any violations of the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), Telephone Consumer Protection Act (TCPA), Real Estate Settlement Procedures Act (RESPA) or other federal and state laws. Those violations create leverage to challenge your automobile loan and any other types of debt. If creditors and debt collectors don’t get in line, your attorney will hold them accountable.
Often, debt collectors stop collection action as soon as they receive a letter from an attorney, focusing their efforts on people who are less likely to fight back. And, many consumer protection statutes require debt collectors who break the law to pay your attorney’s fees. So, our members can often resolve debts without paying anything beyond the membership fee.DebtCleanse can put you back in control with creditors and debt collectors.