Business Debt Negotiation by an Arizona Attorney
Sometimes it can feel like you’re just pouring money down the drain trying to keep your business afloat. It’s time to stop. Let us help you get a plan in place to negotiate down the debt and resolve it for good, without bankruptcy.
What is Debt Negotiation & Debt Settlement?
Simply put, debt negotiation is the process of negotiating for the reduction of a specific debt, which results in the debtor paying the creditor or lender less than the amount owed or alleged to be owed. But achieving a successful debt negotiation & settlement is anything but simple. It takes knowledge of the law (both state and federal), superb negotiation skills, the ability to defend any potential lawsuit and knowledge of how to negotiate an iron-clad settlement agreement that protects the debtor. Of course, it also helps if the negotiator understands how creditors and lenders work and what makes them tick.
Our firm’s practice is focused on helping clients eliminate debt by negotiating for large reductions in debt without the need for bankruptcy. We negotiate down and eliminate principal and interest, as well as penalties and late fees as part of the debt negotiation process. In the end, our clients pay only a fraction of the original debt claimed by the creditor.
Can You Negotiate Your Own Business Debts?
In theory, it is possible in some cases. The question is: what result will you get? If you have very little debt and only one creditor, it may make sense to try it yourself. But if you are like most business owners with debt and have a substantial amount and/or multiple creditors, you will likely find doing it yourself to be overwhelming and only digging a deeper hole. In most cases, an attorney negotiated debt settlement will save you far more money than trying to do it yourself.
Here are some of the factors to consider in debt negotiation.
Representation by Counsel
The creditor will almost certainly be represented by attorneys. Even if the person calling you trying to collect on the debt is not an attorney, you can be quite sure that they either have in-house lawyers or access to legal representation whenever they want. Of course, if you’ve been sued for the debt, you’ll face opposing counsel representing the creditor or lender. If you aren’t represented by a lawyer and the other side is, you are at a tremendous disadvantage from the get go.
The Principle of Leverage
Any good negotiation requires leverage. What is your leverage in negotiating your debt? If you can’t immediately answer this question, you could be in over your head. Debt negotiation is not simply asking to pay less money. Effective debt negotiation requires much more than that. It involves a complex analysis and game plan that factors in what laws apply and how they help you, legal defenses, your current debt/income profile, mistakes made by the creditor, time-value of money, and many other factors.
You must be able to provide a credible reason for the lender to accept less money. Leverage is how you do that. What exactly the leverage is varies from business to business and debt to debt.
You Must Have a Plan
Conquering debt requires a detailed plan of attack. The plan must be specific as to the time period, settlement target and many other factors. This is especially true when dealing with multiple creditors. Different strategies will apply to different creditors. And it is essential to have a comprehensive plan that yields the best result for our client.
An Attorney Negotiated Debt Settlement Brings Resolution
You didn’t acquire the debt overnight, and getting out of debt will take some effort. But our firm understands this better than most. We are intimately familiar with the overwhelming feeling and burden that debt can cause. You may even be losing sleep at night.
We can help you get out of debt for much less than the balance claimed by your creditors – and without the need for bankruptcy, so you can move on with your life.
Call today for a free consultation.