Large Dollar Collections

What is Commercial Debt?

Commercial debt is any debt incurred by a company or by an individual on behalf of a company as the result of a commercial transaction. Commercial debt, unlike personal credit card debt, is used for a variety of business-related things, such as financing business expenses, buying assets or inventory, and making capital investments. Common ways individuals accrue commercial debt are by providing a personal guaranty to a lender for a lease or business loan, taking a loan against his or her home to use for business expenses, or being a guarantor on a business credit card. These large dollar amounts of commercial debt are frequently incurred to start a business or to fund development and growth. Commercial debt counseling, consolidation, and settlement are options for businesses or individuals seeking to manage their past-due obligations.

Robl & Bowen can assist both you and your business if you are having difficulties with collecting or negotiating commercial debt. Our commercial debt collection attorneys in Atlanta have extensive experience in negotiating with creditors to reduce or restructure a portion of the debt so that the company may continue to service it. Our attorneys can also assist your company in collecting debts from clients and consumers if your firm needs to collect the money owed.

Understanding Commercial Debt Reduction

Borrowers may be able to negotiate a lower payment amount with their creditors before the creditor begins a lawsuit to collect on a debt. However, no lender is required to accept a lesser sum, and creditors are not prevented from filing a lawsuit against you while you try and negotiate a resolution of a debt. It is a common tactic for a creditor to continue a lawsuit while you believe you are trying to reach a resolution with them, only for a creditor to receive a judgment and begin post-judgment collection actions such as a garnishment.

The amount a business and its owners can really afford to pay is often a point of contention during negotiations. A lender is more likely to accept settlement offers that are close to the original debt amount, but creditors may accept a significantly lower amount to settle the debt. The negotiation process may be greatly enhanced by the use of a qualified Atlanta commercial debt collection attorney.

Resolving Commercial Debts from Personal Guarantees

Lenders frequently require business owners to execute a personal guaranty when lending money to a business. This personal guaranty will obligate the guarantor (or guarantors) if the business fails to pay the debt owed to the lender. While a personal guaranty can feel like an enormous weight on your shoulders if your business is struggling, guarantors have a number of potential defenses when sued on a guaranty agreement by a bank, landlord, or other creditor. The business debt attorneys at Robl & Bowen have used these potential defenses to settle or win guaranty lawsuits on numerous occasions. The available defenses when sued on a guaranty might include:

• The lender or landlord failing to put the correct legal name of the borrower on the guaranty, a violation of the “statute of frauds,” which requires that all terms of a guaranty be in writing;
• The lender or landlord increased the borrower’s risk, such as by allowing a competing business to open in the same shopping center;
• The lender or landlord releasing another guarantor on the same guaranty, which may have the legal effect of releasing all guarantors;
• The lender or landlord changed the terms of the guaranty agreement without the guarantor’s consent;
• A failure of consideration occurred, meaning that the guarantor did not obtain something that was promised by the lender or landlord;
• The lender or landlord failed to sue the borrower while suing the guarantor; or
• The lender or landlord is “estopped” from enforcing the guaranty, i.e., is prohibited by principles of justice and equity from enforcing the guaranty, when the lender or landlord took some inequitable action.

It is possible to waive these defenses in a guaranty agreement, so the exact language of the guaranty agreement and your specific factual circumstances are extremely important. The commercial debt collection attorneys at Robl & Bowen will review your specific factual circumstances to determine what your best option is to defend against a guaranty lawsuit.

Merchant Cash Advance Companies and Confessions of Judgment

Merchant cash advance (MCA) companies are companies that purchase future receivables at a discounted rate and then receive regular payments, typically monthly or weekly, over time. These regular payments are typically taken directly from a business’s bank account. As part of entering into an MCA agreement, the MCA company typically wants you and your company to sign a “confession of judgment.” A confession of judgment is just a pre-consented-to judgment that the MCA company can file with the Court in the event your company is unable to keep up with the regular debits under the MCA agreement. A confession of judgment is similar to a personal guaranty in that it obligates you for your company’s debts, but it is a stronger tool for creditors as it does not require them to file a suit on a personal guaranty.

The Atlanta commercial debt collection attorneys at Robl & Bowen have had great success in fighting MCA companies and confessions of judgment. While it can feel overwhelming to suddenly receive notice of a judgment against you and post-judgment collection actions beginning, you and your company do have options to fight the aggressive MCA companies and their collection attorneys.

Collection Actions Against Borrowers

The Atlanta attorneys at Robl & Bowen have experience in both pre- and post-judgment collection actions. We have worked with a variety of lenders, including local banks, credit unions, regional banks, national banks, and private lenders, in all steps of collecting on a debt owed, from negotiating with a debtor immediately after a default occurs, to taking post-judgment depositions on a judgment. These are a number of steps that can be taken at almost any stage of collection, and we will work with and advise you on the best course of action based on the particular circumstances of the debt owed to you.

Having an in-depth understanding of the strategies debtors’ attorneys use to fight against collecting on a debt or judgment allows the Atlanta attorneys at Robl & Bowen to understand the most effective ways to collect on your debt.

Contact Our Atlanta Commercial Debt Collection Attorney Today

If you own a business in Atlanta or the surrounding metro area and have concerns about large dollar debt collections, our experienced commercial debt collection lawyers are here to help. The attorneys at Robl & Bowen have extensive legal backgrounds — which includes everything from business law to other related areas — which allow us to more successfully manage the complicated legal matters that can crop up when company owners are overwhelmed with debt. Contact us today to speak with one of our Atlanta commercial debt collection attorneys for more information about how we can help you or your business.