How Are Business Debt Disputes Settled?

Business debt is usually resolved on its own, whether it is between a lender or an individual. Most businesses can pay off their debt within the agreed-upon time in the agreement. However, disputes and other issues can arise. 

If businesses cannot pay off their debt in the agreed-upon time, the business may be able to negotiate an agreement to pay it off. It is best to consult an M&A attorney Miami before doing so. 

A settlement agreement is the most common way to dispute the debt. This is an agreement between the business, who owes money, and the creditor, whether an individual, bank, or institution. However, in some scenarios, settlement agreements may permit businesses to pay less than the owed amount. These agreements may specify an additional interest rate for new payments to be made. 

Alternative dispute resolution methods – mainly mediation or arbitration – may also be used. Mediation will require the use of a neutral third party (a mediator) who hears all sides of the dispute, then helps each party reach a solution in which everyone is satisfied. It is important to remember that mediations are not always binding, so if an agreement is not reached, other methods of settlement may be used.

If you have questions about what avenue to pursue business debt settlements, contact a corporate law firm in Miami

Arbitration allows the parties to agree to submit their dispute to an arbitrator, who has experience resolving such issues. They are usually binding, so the outcome cannot be changed. 

An attorney can help you understand your rights and options for settling debt. Visit Alvarez & Diaz-Silveira online to learn more about working with experienced corporate lawyers.