Top 5 Reasons to Avoid Bankruptcy in Illinois and Opt for Debt Settlement Using Benveniste Law Offices
Business enterprises are traditionally very appealing prospects for finance companies given the fact that they regularly require loans to make capital improvements or purchase inventory. Securing a loan at a pivotal moment can make or break a business, and it has the potential to facilitate a level of profitability that produces a mutually beneficial relationship with the lender over the long term.
Of course, there are times when business borrowers are unable to meet their repayment obligations concerning these debts, which can often be sizable. It is necessary for a finance company to exercise care when deciding just how much pressure they should apply to a business customer in this type of scenario.
Making Personal Contact
There is a genuine risk involved in securing the services of a collection agency or pursuing litigation when a business has trouble repaying a loan. Instead, a creditor may prefer to make settlement efforts in a personal fashion by sending direct correspondence, making telephone contact or by conducting a personal visit to the borrower’s facility. Late payments may merely be due to a temporary cash crunch. In such circumstances, a loan modification may be an ideal solution for both sides.
Commercial Debt Collection Firms
When a late-paying business debtor refuses to engage in cooperative resolution efforts, a finance company may wish to hire a collection firm that focuses primarily on commercial debts. It is worth noting that the Fair Debt Collection Practices Act (FDCPA) is not applicable in a commercial debt context and that state rules govern the conduct of commercial collection agencies. Illinois regulations on commercial and consumer debt collection agencies are, however, identical.
Lawsuits
When communication attempts prove futile, and debt collectors are unable to make any headway with a business borrower, litigation regularly proves necessary. A business owner will be forced to appear in court or face a default judgment, and the lender must establish critical facts about the debt by producing documentary evidence. Once a result favorable to the finance firm is obtained, they can commence collection procedures, including asset seizures, to enforce the legal judgment.
Illinois Debt Relief Options
Regardless if you’re a consumer or corporate entity, you’re well aware of how debt issues can plague your day-to-day life. While business debts strain relationships, consumer debts limit one’s ability to progress financially.
Heather Benveniste of Benveniste Law Offices can provide debt relief options that cater to your financial decision specifically. With 7 years of experience as a debt collection attorney, she has keen insight as to how the opposition will approach a lawsuit and can use her knowledge to your benefit. Contact us today at 1-800-497-5358 for a free case evaluation.
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