Legal Question in Credit and Debt Law in Maryland

Debt Collection

I'm a start-up service. I provide the software development service to another startup. The product was built for the Auto Dealership industry which went down badly.

The startup client can't pay. The outstanding balance is 70K. I drew from my credit card to pay the staffs serving the client and hoped that the client would pay back.

Now I'm a startup with 50K in debt to my credit cards. What options do I have?

1. Hire a collection firm and split whatever it can collect? What collection firms do you recommend?

2. Hire an attorney to make a deal with the client. If client doesn't pay anything, I take over the software product IP? It's a great product, but I can't invest to market it.

3. Negotiate to at least have the client pay interest only on my 50K credit card. What can I do to make the client pay something?

Thank you much for your advices!!


Asked on 5/31/09, 9:39 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Debt Collection

Any of those are potential options, but whether they can or will do any of them may depend on the situation. You may need to accept that this just won't be paid, and figure out how to deal with your own credit card debt.

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Answered on 5/31/09, 1:28 pm


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