Date: Wed, 08/20/2008 20:33
I'm self employed (via an LLC) and 90+ days past due on business credit card debt (that also has a personal guarantee). The account has been closed by the CC company and it being handled by a collection company. I can still make payments to the CC company, but they will not talk to me and say talk to the collections company.
I sitll make money to live on from my business, but it is substantially less then I used to make and less then what I need to pay my bills. As a result my business debts and personal debts (mortgage/car included) are all 30 -120 days behind. My house is worth much less then I owe so basically I am insolvent and could file bankrupcy.
I do not wish to file BK at this time as I believe I will get my business turned around within the next several months. Plus I do not want to lose my house (even thought financial it would probably be a smart thing to do and rent for a couple of years).
A few questions with respect to the business credit card.
1) It is my understanding business credit does not fall under the Fair Debt Collect Account, but I can't find out if this is true for small self employed businesses as well as I've read some things that seem conflicting.
2) I'm trying to negotiate a smaller payment plan with the CC Company/Collector but at this time they are saying I am not offering enough (I can't afford what they what and live (and still going behind on personal debts). The collections company has send a letter (and I have talked with them) saying I've been referred to collections and the letter states I have 30 days to dispute the validity of the debt. I see many places on this site saying it should be disputed, but a)this is a business debt, and b) my info is on the letter already (CC Company, account number, amount owed) plus the CC still owns the debt. So I don't really see a point in disputing it yet unless someone can tell me otherwise (ie, Should I?).
3) I assume I will be sued if is eventually not paid. Questions is how much time ( a range) before it happens and a judgement is rendered and they can collect (30 days, 90 days, several months or more)? If it is several months and I can get my business turned around then I assume I could make much larger payments at that time and/or maybe settle.
Any thoughts, experiences, opinions, etc... would be greatly appreciated.