Business debt collection can be a stressful and challenging process. If you are dealing with business debt collectors in Texas, it is important to know your rights and how to protect yourself.
Dealing with business debt collectors
First, it is important to understand the law. The Texas Fair Debt Collection Practices Act, or FDCPA, protects consumers from abusive or harassing debt collection practices. Under the FDCPA, business debt collectors are prohibited from using unscrupulous tactics when collecting debts. They cannot harass you, call you at work, use threats or obscene language, or misrepresent themselves.
If a business debt collector is harassing you, you should report the incident to the Federal Trade Commission. The FTC can investigate the collector and take action if the collector is found violating the FDCPA.
If you are unable to pay your debts, it is important to communicate with the debt collectors. Let them know your situation and see if there is a payment plan or other restructuring that you can agree to. Do not ignore the debt collectors or make false promises about payments. This will only make the situation worse.
Consider filing for bankruptcy
One of the options to clear your debts and restructure your business for profits is filing for bankruptcy. It can help you modify payment terms to your creditors, give you enough time to find ways to deal with your debts, allow you to protect some of your property and also eliminate some of your debts. As a business owner, you can either file for Chapter 11 or 13.
Dealing with small business debt can be challenging, but it’s important to remember that you have options. Proper restructuring and finding ways to generate more income should be your main goals.