With the economy in a downturn, cash flow is tight for many businesses. In turn, a company may be slow in paying its bills. Before you get involved in litigation for failing to meet a payment deadline, consider the following tips to avoid a creditor's escalating collection efforts:
• Respond in a timely manner to any demand letters you receive;
• Dispute in writing any debt that you believe is erroneous;
• If you can't pay a bill in full, pay as much as you can;
• Contact the creditor and try to arrange a payment plan that you can afford; and
• Contact counsel as soon as possible if you receive any "final demands", threats of litigation or are sued.