How to Face 63 Angry Creditors

The attorneys involved, who had never seen a debtor open up their financial records, advised their clients accept my deal. To further assuage wary vendors, I provided my cell-phone number for 24-hour queries.

At this point, be careful to never promise more than can be delivered, warns Robert Bovarnick, managing partner of Bovarnick and Associates, a Philadelphia-based law firm. If you break creditor trust again, chances are you'll be forced into bankruptcy.

Transparency Pays

Five of 13 creditors took me up on my offer and visited our offices with their attorneys. The other clients' attorneys asked for me to email my business plan, which detailed intentions to buy more products and services from their client, and a good-faith first-check payment.

The attorneys also required that we agree to the entry of a judgment, which would be filed only if I missed a payment and didn't call to discuss it.

No matter what you promise, creditors will assume payments won't be made, says Bovarnick. Therefore, be prepared to accept many legal protections from their side.

After one year we had paid back all 63 vendors. With a wide-open-book policy and a little integrity, we managed what the original owner thought impossible: We cleared up sizable debt without a lawsuit and our company still intact.

Lesson learned: If you ever find your company staring down the barrel of debt, start wearing your business on your sleeve.