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Ellen
Ellen, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy Lawyer. Experienced.
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the company i work for owes 519k to american express card and

Customer Question

the company i work for owes 519k to american express card and the collection department has sent a notice for reply withing the end of business day please advise what is the immidiate course of action
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.

WebLaw :

*Due to rules of your state bar or mine, nothing herein is intended as legal advice, only intended as general information to better help yourself.*

WebLaw :

Welcome to JustAnswer,

So sorry to hear of this dilemma. If my answer is not clear to you or does not fully answer your question, please ask me for clarification by using the reply button.

WebLaw :

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!

JACUSTOMER-slbrss0m- :

the business has no fixed assets it own leases and owns inventory which is partly owned .

JACUSTOMER-slbrss0m- :

how do i react to the letter sent by american express attorney .

WebLaw :

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

JACUSTOMER-slbrss0m- :

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

JACUSTOMER-slbrss0m- :

for which i would need time

WebLaw :

I see.

WebLaw :

What has American Express threatened to do if you do not contact them by the end of the business day

JACUSTOMER-slbrss0m- :

they have threatened to take all legal action to protect their clients

WebLaw :

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

WebLaw :

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.

WebLaw :

Your goal would be to postpone the suit until you have had time to liquidate your assets

WebLaw :


Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.

WebLaw :

anything else?

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