Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
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Welcome!I am an attorney with 25+ years of legal experience and am working diligently on your answer while I await your response.Please tell me:What other debts does the company have? Has judgment been entered on any of the debts?Are you personally liable on any of the debts of the business?What assets does the business have?Thanks!
the business has no fixed assets it own leases and owns inventory which is partly owned .
how do i react to the letter sent by american express attorney .
Before determining how to react to the letter sending by American Express, you need to determine the results that your attempting to achieve. Do you want to negotiate a lower lump sum payment? Do you want to set up a payment plan? Do you have other debts that are not being paid as they become due?Please elaborate
the ongoing and current depts are being paid from the cash flow but the company is falling behind as it is making losses ,the plan is to liquidate all liquid assets to pay of the debt
for which i would need time
What has American Express threatened to do if you do not contact them by the end of the business day
they have threatened to take all legal action to protect their clients
I see. If an agreement is not reached with American Express, they will likely file suit. Filing suit will require that the collection department transfer the debt to the litigation department or outside counsel. Typically at that point you will be contacted again prior to suit being filed. I suggest if suit is filed that you consider filing a chapter 11 bankruptcy. The Chapter 11 bankruptcy would allow you to make an orderly liquidation and distribution of your assets
Therefore at this point, you may want to consider contacting the collection department and indicating that you would like to work out a payment plan.
Your goal would be to postpone the suit until you have had time to liquidate your assets
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