Michael E. Eisenberg
CREDITOR/DEBTOR
CREDITOR REPRESENTATION
Even when a creditor is pursuing a debt, whether is it owed by an individual or a company, receiving payment becomes much more complicated if the debtor files for bankruptcy. There are many requirements for a proper bankruptcy filing and it must be understood that the bankruptcy system is a court system.
Lawsuits and objections are permitted and ought to be pursued if they are viable. Having an attorney who knows the bankruptcy court system could be the difference between partial or whole payment or no payment at all.
DEBT COLLECTION DEFENSE
When defending against debt collection defense several questions need to be asked by the alleged debtor. First of all inquire as to whether the debt is legitimate and whether it was incurred by the defendant.
Next evaluate how long it has been since the last use or last payment, whichever is last. The statute of limitations in Pennsylvania for a contractual debt is four years. That defense is commonly used where the debt has been transferred from the creditor to a collector. The next major question and perhaps the final question is whether the amount of the debt, if valid, could be negotiated to a lower figure and under what payment terms.
SMALL BUSINESS AND PERSONAL DEBT WORKOUTS
If debt has become an issue, then the factors of the client, whether it is an individual, a couple or a small business, must be evaluated to determine if a work out plan, debt restructuring, is feasible and how to implement a plan. One of the advantages of this method of debt resolution is the avoidance of bankruptcy while still maintaining the ability to file bankruptcy if needed.
A full review of income, assets, debts and cash flow must be performed to determine the best course of action. This process can take a number of hours before creditor contact is made. Once creditor contact is made, the negotiations begin and any confirmations occur once deals are made.
SMALL BUSINESS SALES/PURCHASES -
One of the most important steps for a small business owner is whether to sell or whether to purchase an existing business. Experienced counsel is important as this is often the only business owned by the seller and a large investment of funds for the purchaser. The purchase must be evaluated in terms of the form of the business to be sold and how the purchaser will operate the business. Sole proprietorships are different from corporate ownerships and asset sales/ purchase are different from a stock purchase. These decisions are above and beyond the usual due diligence performed when contemplating a purchase or sale. Whether the sale will be owner financed, cash or bank/institution financed are decisions to be made early in the process. Consult counsel early on and before anything, even a letter of intent, is signed.
