American Finasco > Blog > All Debt is not Created Equal

All debtors are not created equal when comparing (or collecting) business and consumer debt. But that doesn’t mean that debt collectors have all the power. Read on to learn other options when facing a commercial debt collection situation.

The Law has few limits on commercial debt collectors. State and Federal Laws protect consumers facing debt collection and collectors. However, these laws do not apply to business debtors or any debt taken on for commercial use. The Fair Debt Collection Practices Act does not protect business debt

*The Federal Fair Debt Collection Practices Act (FDCPA) prevents abusive collection tactics without proper court proceedings for individuals in debt. This makes business debt collectors more aggressive in collection efforts, putting more pressure on commercial debtors. 

The difference between individual debtors and business debtors is significant. Individuals are allowed several exemptions in the debt collection process. On the other hand, a business is not entitled to these exemptions. In the case of business debtors, real estate, equipment, and accounts receivable are susceptible to seizure, creating even more financial problems and possibly bringing down the entire business.

Options for Business Debtors

If your business is facing financial difficulties, you still have options. Working with American Finasco’s National Attorney Network to handle legal matters and court filings on your behalf can be accomplished at a fraction of the cost of most other attorneys who ask for a hefty retainer before they even accept your case. Our extensive attorney network helps our clients navigate debt issues and regain control of their finances. 

Business debt restructuring with American Finasco can help avoid bankruptcy. A good restructuring plan is the best way for a business to get out of debt, keep its creditors satisfied and continue to thrive. We also manage debt, eliminate the harassing phone calls creditors are famous for making, and inform the creditors that American Finasco is handling the debt and communications with creditors.

The best option for a business is situational, and American Finasco has a solution for you. Visit Contact Us and complete our Online Form for a free consultation, or call (800) 299-2909. We look forward to speaking with you.