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.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.