Written by Jim Herst
First, it was the letters and calls from his creditors, then their collection agencies. Next, it was an attorney's demand letter. Without any notice, a Summons arrived requiring a court appearance. Bill's delinquencies stemmed from a number of things, less sales, fewer customers, higher operating costs all adding up to his not generating enough cash to meet his payables.
He had heard ads offering loans, consolidation, credit fixes, second mortgages. Business brokers implied they had buyers for his business. What to do? He could run and hide, he could stall, even ignore phone calls and letters. Maybe he could sell his business and pass his problems to another? His accountant told him he was fiscally bankrupt, his attorney (at $200.00 per hour) told him he was fiscally bankrupt. Never mind what his wife told him.
On examination his options were all negative responses, not offering any kind of solution he could use. A loan was costly, requiring full payment at high interest; consolidation meant he would pay all in full but it would prolong his crisis. A second mortgage was no good, he already had one and he would not qualify for a third. A buyer would not take his debt, and bankruptcy would leave him with nothing except a 10-year mark on his credit report.
Bill at first believed he could persevere and work out from what had become an unmanageable problem. The endless effort to placate creditors would soon became a full time job, keeping him from what should have been his main task, taking care of business, being a boss, working to right what already was a sinking ship.
Having seen the suit in the public record, I approached Bill. His first reaction to me was, he had an attorney, he knew his options, and debt settlement wouldn't work because he knew which creditors who most surely would not accept settlements. He was resigned to work solutions on his own or to bankrupt. He had already arranged two settlements, both at 80% of what he owed. It was tough to get him to tell me, but he conceded he had been unable to make even the first payment on either of the arranged settlement commitments. And, the phones kept ringing.
After further discussion, he began to realize what Professional Debt Management might do. I explained how we immediately would stop all creditors from contacting him, thus leaving him free to run his business. Though we're not attorneys he liked suggestions on how his court appearance might be handled. He liked it when showed how we approach creditors and obtain settlements for 20 to 70 cents on the dollar. Best of all, he really got excited when he saw how settlements could be spaced to be paid when he was ready, not at the demand of his creditor. He very much liked the fact we work on contingency, and are only paid when he approves and pays a settlement.
Bill's bills were settled. Initially 23 creditors were owed in excess of $125,000.00. After paying our fees he saved 53% (over $68,000.00 saved!) of what he owed. Best of all, selected creditors agreed to again sell to him. He stayed in business retaining the possibility of later selling his company with a cleaned balance sheet supporting a profitable operation. Important too, in time his personal and business credit ratings were restored to acceptable levels.
If your situation is worthy of saving big money, developing a balance sheet to satisfy any inquiry and to position your business (and your life) so you are in control, I invite you to look carefully at what an experienced Payables Manager can negotiate for you. Nationwide since 1963, tens of thousands of debts have been settled by us that have satisfied both creditors and debtors. Users also engage us when closing a business. Our debtor/clients have saved in excess of 35 million dollars. We have the proof and it's available to you, along with Bill's record, to back up that claim. Our Users are Lovers.
It's possible, like Bill's bills, yours too will become little bills. All you have to do is ask.
This program is available for your review; talk with Steve Newman without commitment on either side.
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