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Lawyers Who Solve Serious Debt Problems

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California Business Debt Defense Attorney

What is a Business Debt? (aka Commercial debt)

Business debts are what you think they are: debt obligations incurred on behalf of the business. Typical examples are tools, supplies, inventory purchased in order to operate the business. Gifts bought for your wife on company credit cards are not business debts, but gifts bought for suppliers are. Some purchases are not as easy to classify. For example, auto expenses are a common area of crossover between business and personal.

*Personal Guarantees: if the debt is for business, it is business. That fact that an individual is responsible for the debt does not change the type of debt. The easiest way to think about it is: what did the money go for (business purpose or not), not who is going to pay it

Why is it Important to Determine if Debt is Business or Personal?

The law treats each type of debt differently. The laws prohibiting collection abuses do not apply to business debts. These laws only apply to “consumer debts”. Therefore, other than generic laws prohibiting harassing conduct, there is no limitation on when or how many times a collector can call on a business debt.

Featured Case Results

  • February 4, 2021: A Judgment against our client in the amount of $152,183.00 was settled for $40,000.00! Saving our client over 73%! (ESBF California, LLC v. Client. Case #CPF 17-5156XX – San Francisco County)
  • October 13, 2020: A Judgment against our client in the amount of $77,352.00 was settled for $34,000.00! Saving our client over 56%! (MCA Fixed Payment, LLC dba Reliant Funding. Case #30-2019-011099XX-CU-CL-CJC – Orange County)
  • February 28, 2020: $11,718.86 Unique Funding Solutions was settled for $3,500.00. Saving our client over 70% of the debt!
  • Commercial lease settlement: Client had a 2010 judgment for unpaid retail lease payments that had grown to $165,600. We settled this for $28,000 in payments! (OCSC case# 30-2009-003173XX)

DISCLAIMER: Every case is different. Results depend on the unique law and facts of each case. Fitzgerald & Campbell, APLC makes no guarantees or warranties about the outcome of any particular matter or case. The Fitzgerald & Campbell, APLC website, or the information contained within the website, should be construed as ATTORNEY ADVERTISING.

Who Owes a Business Debt?

The first question on business debts is: who is the debtor? Is it you or the business or both? If you, as an individual, obtained the credit, or personally guaranteed the payment, then a claim can be made against you personally, regardless if it was for business purposes or not. If your business is a sole proprietor or partnership, you can be held personally responsible for the creditor’s claims. If the business was/is a duly authorized and properly maintained corporation or LLC and there is no personal guarantee, you cannot be held personally responsible.

FITZGERALD & CAMPBELL, APLC can help you to determine:

  • Is the debt personal or business?
  • Who is responsible for the debt?
  • What will happen if you default on the debt?
  • What we may be able to settle it for

COVID-19 was responsible for many businesses failing. If you decide that your business is going to fail, you will want to know if anyone will be able to go after you personally when the business is shut down. Call us for a FREE CONSULTATION to find out. DON’T IGNORE it and hope it goes away!