It is always gratifying when I can assist a business owner with problem debts and lessen their financial burden. Often, this can make the difference between continuing business operations or closing the doors.
A case I closed earlier this year not only allowed a business to remain open, it also allowed the owner to avoid declaring personal bankruptcy.
My HVAC client was dealing with a $213,000 business debt that had escalated to a lawsuit… and the owner was on the hook personally. A judgment would have devastated the company and the owner.
Through skilled negotiations, I was able to convince the commercial creditor to accept an out of court settlement in the total amount of $30,000, payable in 60 monthly installments of $500 each at 0% interest.
Considering the creditor could have been awarded attorney fees claimed of $25,000 in addition to the principal debt, court costs and back interest, total savings to my client was over $210,000.
My client was able to stay in business and avoid personal bankruptcy while the creditor was able to receive at least a portion of their claim
