Small Business Debt Collection Law Cheat Sheet

by: Joel Walsh
In your small business debt collection laws will eventually become important, as your debt grows and some clients do not pay. To collect small business debts legally, you must first send a written notice that collections have begun, within five days of first contacting the debtor for collections (for instance, within five days of calling on the telephone). The letter must include dispute instructions. Small Business Debt Collection Laws Forbidden Practices * Collect any amount beyond the actual debt, unless you really can do so legally. * Continue collections on a debt if the debtor has disputed the debt, unless you provide the debtor with written proof. * Continue contacting the debtor if within 30 days of first contact, the debtor disputes the debt. * Credit a payment the debtor has made to a non-disputed debt to a debt the debtor has disputed. * Deposit a post-dated check before the post-date. Small Business Debt Collections Laws: What You Can't Say * Give a false name. * You are an attorney or government representative, if you are not. * You have an attorney working for you or that you are going to assign the case to an attorney, if you really do not. * The debtor has committed a crime, unless you are 100 ure they have. * You work for a credit bureau, if you really do not. * The debt is more or less money than it actually is. * You are sending or have sent legal forms when you really did not. * You are sending or have sent papers that are not legal forms, if they really are legal forms. * The debtor will be arrested--no one is arrested for nonpayment of debts anymore. * You will seize, garnish, attach, or sell the debtor's property or wages, if you do not really intend to or cannot legally do so (and unless the debt is secured with collateral, you probably cannot). * You will sue or take other legal action, if you do not really intend to, or are not legally able to do so. Small Business Debt Collection Laws Forbidden Third-Party Disclosures Never: * Give any credit-related information that is not 100ccurate. * Tell anyone other than the debtor that you are collecting a debt. * Telephone any number other than the debtor's more than once. Small Business Debt Collection Phone Calls Never: * Call after 9 pm or before 8 am. * Forget to give your name and your company's name. * Call repeatedly or in a way intended to annoy. * Make a collect call. * Make any threats. * Use profane or obscene language. * Leave a message that reveals this is a debt collection. Small Business Debt Collection Mailing Never send: * Postcards. * Envelopes or mailings with any reference to debt collection on the exterior. * Anything that looks like an official, legal, or government document, if it is not. Please note this page is not intended to give legal advice and may not be complete or up to date with the most current collection laws changes.

How do commercial debt reduction companies work?

by: Jon Butt
Don’t stress it – commercial debt reduction companies are proven authorities in debt negotiation to reduce your commercial debt in the best way possible for you, especially when you’re least interested in the worst alternatives like Chapter 11. The best debt negotiation companies are there for your small business or medium-sized company - the size of the companies involved is never an issue to these debt negotiation professionals. The heart of the matter is debt reduction to take your commercial debt through rough patches including recession that creates those limited dry spells in your cash flow. Debt Negotiation Will Reduce Your Debt And Save Thousands Off Your Commercial Debt! You know what’s best for your business or companies – and debt reduction companies know best how to get your business back on track. Companies across the country have chosen a debt reduction program to effectively structure their commercial debt. Your debts can seem like an insurmountable obligation – and the most frustrating thing with commercial debt is that as hard as you work to succeed, your supplier companies demanding payment – or even larger factors like a bad economy - create bad credit issues that can be completely out of your control. You know you offer one of the best products or services in the marketplace, and all you need to do is reduce your commercial debt, re-establish your credit rating and get your business back on track. Debt reduction companies understand your hard work and best efforts, so you can depend on qualified counselors, CPA and legal pros in debt negotiation and debt reduction to put your debts on the firing block. Check out Free Debt Relief Guidea free resource providing genuine, up-to-date advice for debt reduction, credit card debt elimination, the best online consolidation loans, how to get a decent credit score and, above all, how to avoid bankruptcy

Debt Relief From Debt Consolidation

by: Jakob Jelling
If you are up to your neck in debt, there may seem like there is no relief in sight. In fact this is not necessarily the truth. There are ways to take all of your stifling bills and roll them up into one neat package by using debt consolidation in two very popular forms Home Equity Loans, Refinancing Loans, and a Consolidation Credit Card. All of these instruments provide the debtor with one thing "relief" from the current debt by shrinking it down to a single manageable debt.
Using home equity to consolidate debts
One of the popular methods of debt consolidation today is the Home Equity Loan. What happens is that the debt is extinguished using the equity from a homeowner's home. A loan is created outside of the mortgage in order to satisfy the debts. Should the homeowner default on the loan, their house is in jeopardy of being foreclosed upon if that loan is not satisfied with a specified amount of time.
Refinancing loans
People often consume the debt by rolling it into a new mortgage. This way the house costs more money to the borrower, but the debt is extinguished at close and the debt is neatly rolled away into the mortgage securely. Upon settlement of the loan, the debts are paid in full and satisfied. The clock on the mortgage is reset to day one.
Credit card consolidation
A low interest credit card is offered to the borrower to include any outstanding credit and loan balances. The interest rate is a low fixed rate for a period of up to one year, upon the year's end it will resume at its normal rate. Upon acceptance and terms the account should be closed once paid in full and payments be made directly to the new credit card provider. Some people have been able to master paying off one credit card with another to keep the debt revolving and interest rates low. Some people fail to close out the previous creditors account and run them back up again as well.
All three of these options provide solid relief for the debt and help them reconstruct and manage their debt better.
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