Tag: Debt

Imagine a business thriving at the peak of its busiest season. Sales are booming, and the future looks bright, until their largest customer suddenly files for bankruptcy. Overnight, expected revenue vanishes and invoices go unpaid. Unable to absorb the blow, the small business soon faces bankruptcy too, leaving suppliers unpaid and triggering a ripple of financial losses throughout the supply chain. 

Senate Bill 1286 (SB 1286), signed into law by California Governor Gavin Newsom on Sept. 24, 2024, will extend existing consumer debt collection protections in the state to small businesses and to the collection activities of business debt.

Though the U.S. economy has seemingly survived a worst-case scenario recession (for now), debt is rising as a rapid rate for consumers, businesses and the U.S. government.