Business Law

Ask a Business Lawyer. Get Business Law Questions Answered ASAP.

Ask a Lawyer,
Get an Answer ASAP!

Business Law
This answer was rated:

Background: I own a small publishing company. I write engineering

textbooks and publish them myself...
Background: I own a small publishing company. I write engineering textbooks and publish them myself (web site) plus via storefront and most internet bokksellers and publishers. I also teach seminars - US, Canada and Europe. Business is slow, tho in this economy.
Question: If I stop paying my credit cards, what can happen to me? Is the creditor's response based upon the amount owed ($5000, 10,000, 20,000, etc)? I have settled one account (40 cents on the dollar). If I can't settle the others for a reasonable amount, what can (or probably will) the creditors do? Liens? Court Action? Collection Agents? Charge off? I want to avoid Bankruptcy, if I can.
Show More
Show Less
Ask Your Own Business Law Question
Answered in 4 minutes by:
7/5/2010
Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 56,029
Experience: 32 years of experience practicing law and a businessman.
Verified

Good morning. Most credit card companies these days are willing to do one of two things...i) settle for a percentage of the original debt; or ii) agree to a payment plan over a period of time while cutting your interest rate to a very low rate or none at all. Only if one of those alternatives do not work do the companies take other action. Typically, they will not file suit themselves; rather they sell the debt to debt collectors, who begin to hound you daily. You can stop this hounding by demanding they cease to do so; once you demand this in writing, they are in violation of the Fair Debt Collection Practices Act if they continue and you can report each violation to the Federal Trade Commission. At that point, the only time they can contact you is if they decide to file suit. Which they can do. Once they sue you and get a judgment, they can then move to collect that judgment by attaching your assets and/or garnishing your wages. If you have basically no assets, you can then seek bankruptcy protection to get this judgment discharged.

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

If you have a follow-up question, please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.

 

 

 

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Ask Your Own Business Law Question
Customer reply replied 7 years ago

If I decide to declare Bankruptcy, is my house mortgage/home equity loan in jeopardy? It is covered by the Homestead Act. My Equity Loan contract says that, if the bank thinks that my financial status has changed significantly in a negative direction, the bank can accelerate the equity loan balance to become payable in full immediately.

 

Along the same line, my wife and I have credit cards with the bank that holds our mortgage. Would it be too risky to try to settle these credit card balances? I do not want to do anything that will scare the bank into accelerating my equity loan.

If you declare bankruptcy, you do not have to include your home...you can continue to pay on your home loans and exclude the house and the accompanying debt from your bankruptcy filing.

 

Your acceleration provision is a pretty common provision, but banks are hesitant to accelerate home loans when they are performing. In a ironic twist, your settlement of these credit cards actually makes your home loans more secure because it frees up more money for you. I doubt the bank will call these loans given they are secured by your homestead...if they were loans for anything other than your home they would be more likely to accelerate them.

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

If you have a follow-up question, please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.

 

 

 

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 56,029
Experience: 32 years of experience practicing law and a businessman.
Verified
Richard and 87 other Business Law Specialists are ready to help you
Ask your own question now
Customer reply replied 6 years ago

I managed to arrange settlements on two of my credit card debts. Hiwever, one bank BOA) refised to accept any of my offers to settle one of my wife's creditcards. She recieved a summons on 4/1/2011 to which she must respond. The following is a draft of our response. Cpuld you please review it and advise as to whether or not it is appropriate.

 

 

 

 

 

 

 

April 4, 2011

Shechtman Halperin Savage, LLP cc: Clerk of Pittsfield District Court

XXXXX/p>

Pawtucket, RI 02860

 

Re: Your File Number: 10-04776 and District Court Civil Action No. 1127W0141 dated 3/30/2011

 

Subject: Settlement Offer for BOA Account #4888 9340 1151 4907 (aka FIA CARD SERVICES)

References: 1) Letter from Bank of America to undersigned dated January 12, 2010

2) Letter from undersigned to Bank of America dated January 19, 2010

3) Letter from FIA Card Services to undersigned dated February 10, 2010

4) Letter from Bank of America to undersigned dated February 10, 2010

5) Letter from undersigned to FIA Card Services dated February 12, 2010

6) Letter from Collectcorp to undersigned dated March 3, 2010

7) Telecon between Mr. Dean Khalid* and the undersigned on March 8, 2010

8) Letter from undersigned to Collectcorp dated March 11, 2010

9) Telecon between Mr. Dean Khalid* and the undersigned on March 12, 2010

10) Telecon between Mark* and the undersigned on April 4, 2010

11) Telecon between Caroline* and the undersigned on May 20, 2010

12) Telecon between Marie* and the undersigned on May 24, 2010

13) Letter from undersigned to Collectcorp dated June 3, 2010

14) Letter from undersigned to Collectcorp dated July 18, 2010

15) Letter from Weltman, Weinberg & Reis to undersigned dated August 19,2010

16) Letter from undersigned to Weltman, Weinberg & Reis dated August 24, 2010

17) Letter from Shechtman, Halperin & Savage to undersigned dated February 8,2011

18) Letter from undersigned to Shechtman, Halperin & Savage not dated

19) Letter from undersigned to Shechtman, Halperin & Savage dated February 24 2010

20) District Court Civil Action No. 1127W0141 dated 3/30/2011

 

* Collectcorp

 

Dear XXXXX L. Maynard:

 

The following is my offer to settle the reference #20 action/claim.

 

I will agree to settle the claim for a reduced amount equal to $1852.72 (15% of the claim amount of $12,351.44) payable at the rate of $5.00 weekly. This is the best offer that I can make at this point in time. I have made several settlement offers to the BOA on this account, which you can see from the letters and telephone conversation notes referenced and attached. The BOA declined all of these offers. The funds that we had available at that time have been provided to other credit card debt holders who accepted our settlement offers.

 

I believe that this is a fair offer because the BOA has, in the past year, accepted a settlement of my husband's credit card account for 25% of the original amount. He made that settlement offer when we had income from our book publishing business. My husband writes and sells engineering textbooks. We have absolutely no disposable funds available at this time.

Sales have since dropped to almost nothing on our web site. No one is buying technical books in this economy. They are spending any disposable income on their mortgage, car payment, health insurance, food, etc. My husband has recently had to remove the shopping cart for book sales from our web site because we don't even have the funds available to pay the monthly fees for the shopping cart and the Internet gateway/bank.

 

My only income is from a small social security check ($660.00 per month).

 

Please advise if this offer is acceptable to you and your client.

 

Thank you,

 

 

 

 

Kathleen N. Lyon

163 Balance Rock Road

Pittsfield, MA 01201

 

Hi there. I think your letter is fine. I might add two things...i) let them know that counsel has advised you that creditors cannot touch your social security income; and ii) add at the end that as you have shown you are making every effort to resolve your bills by paying as much as you can, but that if BofA refuses to comply and takes any action that you have nothing for them to get and you may have no choice to file for bankruptcy protection in which case the amount owed would be discharged in its entirety.

Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 56,029
Experience: 32 years of experience practicing law and a businessman.
Verified
Richard and 87 other Business Law Specialists are ready to help you
Ask your own question now
Ask Richard Your Own Question
Richard
Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 56,029
56,029 Satisfied Customers
Experience: 32 years of experience practicing law and a businessman.

Richard is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Infolawyer

Infolawyer

Attorney

1,851 satisfied customers

Experienced lawyer

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

1,611 satisfied customers

Run my own successful business/contract law practice.

MShore Law

MShore Law

Attorney

1,233 satisfied customers

Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements

RGMacEsq

RGMacEsq

Attorney

751 satisfied customers

Licensed Texas General Practice Attorney

Barrister

Barrister

Attorney

646 satisfied customers

17 years practicing attorney, JD, BA, MBA

Ely

Ely

Attorney

577 satisfied customers

Counselor at Law.

J.Hazelbaker

J.Hazelbaker

Attorney

393 satisfied customers

Experienced and trained in the area of business law.

< Previous | Next >

Related Business Law Questions
I have a small business I have two contracts in a mine two
I have a small business I have two contracts in a mine two different planners asked me to do work I was told by several mine employees that one was the priority so I did that work the other planner go… read more
WiseOwl58
WiseOwl58
JD Honors Graduate
3,720 satisfied customers
Second opinion] Would bankruptcy be a good solution to halt
Second opinion] Would bankruptcy be a good solution to halt a suing opponent from trying to pierce the corporate veil against my LLC? Specifically they are trying to serve a Subpoena to provide my LLC… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,393 satisfied customers
Would bankruptcy be a good solution to halt a suing opponent
Would bankruptcy be a good solution to halt a suing opponent from trying to pierce the corporate veil against my LLC? Yes my company really is bankrupt, only I havent had money to even file until rece… read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
1,851 satisfied customers
My company has a debt collection issue with a company that
My company has a debt collection issue with a company that entered a material agreement with us and there is a failure to pay. The contract had an arbitration clause. The debtor's new management is wi… read more
LegalGems
LegalGems
Juris Doctorate
10,718 satisfied customers
I have a business contract case.The company closed years
I have a business contract case.The company closed years back, but since I was a personal guarantor there was a suit against me. The lawyer asked for discovery and I did not comply, and now the hearin… read more
Ray
Ray
Lawyer
Doctoral Degree
30,899 satisfied customers
Looking a the corporate practice of medicine in Illinois
Looking a the corporate practice of medicine in Illinois what are the ownership requirements, can a chiropractor own a medical practice … read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
1,851 satisfied customers
Let's say I signed a settlement agreement with a publisher
Hi,Let's say I signed a settlement agreement with a publisher not to distribute any more counterfeit copies of its books. If I were to continue distributing copies of its books after the settlement ag… read more
KLAW
KLAW
Juris Doctorate
1,770 satisfied customers
A settlement has been reached between the parties. The party
a settlement has been reached between the parties. The party to whom the payment was to be made, did not submit W9 info for some time, thinking it was not necessary. For how long after reaching the se… read more
RGMacEsq
RGMacEsq
Attorney
Doctoral Degree
751 satisfied customers
Is it regular practice to name a old debtors as defendants
is it regular practice to name a old debtors as defendants in a new Fraudulent conveyance case??… read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
1,851 satisfied customers
Regarding terminating a business contract with a billing
Regarding terminating a business contract with a billing company that processes our billing. Both I and my partner signed contract as required by our Operating Agreement for the business . The billing… read more
LegalGems
LegalGems
Juris Doctorate
10,718 satisfied customers
I'm starting a general contracting business in Chicago. I'm
Hello. I'm starting a general contracting business in Chicago. I'm considering forming an LLC as a holding company for future DBAs for each part of the business, including construction, cleaning/maint… read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
1,003 satisfied customers
This is a question about compliance for medical practices
This is a question about compliance for medical practices and chiropractors. We have a med spa business concept that involves offering our brand, access to pharmaceutical discounts, and expertise to h… read more
Asad Rahman
Asad Rahman
Attorney
J.D.
2,296 satisfied customers
I would like to write up a business sale contract of some
I would like to write up a business sale contract of some parts I sold to be paid in 2 years. Do you offer such custom contract?… read more
Asad Rahman
Asad Rahman
Attorney
J.D.
2,296 satisfied customers
I own a small business, when bought I had a contract with my
I own a small business, when bought I had a contract with my brother he gets 25% and my mom gets 25%. However he has never paid taxes on the money I've given him and my mother and now he says he wants… read more
Barrister
Barrister
Attorney
Doctoral Degree
646 satisfied customers
I have an investment contract with a local business. I was
I have an investment contract with a local business. I was suppose to get 30% of profits monthly. They have defaulted on the agreement. What can I do? … read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
1,003 satisfied customers
Can an LLP Have a DBA. NJ Not yet. I am an attorney but
NJ Not yet. I am an attorney but practice family law … read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
1,851 satisfied customers
Question about business/contract law breach of contract and
question about business/contract law breach of contract and file a complaint I like to consult with an attorney preferably from ILLINOIS… read more
Damien Bosco
Damien Bosco
3,391 satisfied customers
Is a contract from a business that can not be found in the
Is a contract from a business that can not be found in the database of the Secretary of Texas (we think it's a fake company) valid and enforceable? … read more
RGMacEsq
RGMacEsq
Attorney
Doctoral Degree
751 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x