The threat of a business debt lawsuit is very real when your company owes a hefty balance. A business debt attorney may suggest bankruptcy as a solution, but that is far from the only path you can take. If your debt includes unsecured lines of credit, our team of advisors and legal experts can work with your creditors to find a solution that meets your needs.
With an unsecured line of credit, you do not need to provide any form of collateral. Collateral is a form of security for a loan or a line of credit. One example of a secured line of credit is a home equity line of credit. A home equity line of credit uses your house as collateral. If you fail to pay the loan, the lender can, and likely will, seize your house.
On the other hand, with an unsecured line of credit, there is no collateral. It is still a contract, though, and if you do not pay, you will likely find yourself in business debt breach of contract. It is important to note that unsecured lines of credit may have higher interest rates than secured lines of credit due to the lack of collateral. They are more flexible than business loans, however, as you only use as much as you need. For example, if you are approved for an unsecured line of credit for $100,000, and you only need $10,000, then you only owe the $10,000 utilized from your line of credit.
Just like with any kind of debt, it is easy for things to spiral out of control. If you borrow against your line of credit to make ends meet and your business does not bounce back the way you expect, you may find yourself in default. If you default, you will be faced with aggressive creditor phone calls, or worse, a lawsuit.
There is no reason to panic, we can work with you and your creditors to come to a business debt settlement, or to restructure your business debt. With a debt settlement, you pay your creditors less than you owe, the debt is then considered settled, and your creditors will not pursue any further legal action. With a restructure, we will work with both your creditor and you to find a repayment plan that meets creditor expectations, while keeping your business afloat.