| First, look for how the business was formed, was it a | | | | mean for the companies they owe money to and the |
| sole proprietorship, an LLC, a corporation? Look for | | | | consumers that have Circuit City or any other store |
| personal guarantees, look at the past few months of | | | | credit cards? |
| ordering habits, do you see an increased pattern of | | | | Many consumers think this means they don't have to |
| ordering? They may have been trying to increase | | | | pay the Circuit City credit card bill, and they couldn't be |
| inventory to make more sales to pay for it, but maybe | | | | more wrong. When a company goes out of business |
| did not make those sales. Check your signed contracts | | | | they look at what is owed by those consumers on |
| and agreements with those companies and see if | | | | their credit cards and that is included in their plan of |
| there are provisions for collecting, or any personal | | | | action. Consumers need to remember that there is no |
| guarantees. If the business was a sole proprietor, you | | | | free ride, you bought something and you have to pay |
| can pursue the owner and utilize credit reporting as a | | | | for it. Stalling and using this excuse for non-payment |
| way to get paid. | | | | will only ruin your credit, incur more fees and could |
| A construction loan contract between Donald Trump | | | | raise your interest rate. If you bought electronics from |
| and Deutsche Bank includes an unusually broad | | | | Circuit City and they are no longer in business your |
| phrase, "any other event or circumstance not within | | | | warranties and rebates will still be honored through the |
| the reasonable control" of the borrower. Mr. Trump is | | | | original manufacturer. The company going out of |
| arguing in a New York State court that the "calamitous | | | | business does not affect your rebates or warranties. |
| economy" falls under that definition and should keep | | | | If a business closes and owes you money, here's |
| Deutshe Bank from collecting $40 million on a loan that | | | | what you can do: |
| Trump personally guaranteed for a hotel and | | | | 1. Hire a Collection Agency |
| condominium tower in Chicago." Check your contracts | | | | 2. Utilize credit reporting |
| and while you are at it maybe have them re-written to | | | | 3. Depending on your signed contract, you may be |
| reflect this economy. | | | | able to take court action. |
| If the economic crisis could be an excuse for not | | | | 4. File a complaint with the Better Business Bureau. |
| paying debts, every debtor in a country suffering | | | | 5. Find out if there are any pending class action |
| economic distress could avoid paying it's debts. Take | | | | lawsuits against the company and if there are, file a |
| Circuit City for example, they are going out of | | | | grievance with the county court so your name and |
| business, have going out of business sales, letting | | | | amount due can be part of the suit. |
| employees go and closing their doors. What does this | | | | |