DEBT SETTLEMENTS: HOW TO SETTLE YOUR BUSINESS DEBTS

[AJAY KAPOOR]

When a business closes, a good-sized pile of debts is expected from the suppliers, landlords, service providers, utilities, and probably a private lender or bank. After notifying this creditor of the upcoming closure, you plan to pay bills in full, consider filing for bankruptcy, or settle for less than full payment. There is a usual approach like ignoring debts and hoping creditors ignore you — this can be tempting, but as much as possible don’t go this route. The situation may result in being hounded by repo people, collection agencies, lawyers, and lawsuits.

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