There are many differences. Here are four that you need to know:

#1). Our attorneys will advise you on the pros and cons of your debt solution options, as well as a strategy to get out of debt. Since we also offer other solutions (besides debt negotiation and settlement), you’ll feel confident knowing our counsel is unbiased – with only your best interests in mind.

These “so-called debt relief” companies are not law firms, so you will only speak with a sales person trying to “enroll” you in their program that is good for them financially, and not for you.  They are not attorneys, so they cannot give legal advice and therefore, cannot address your options or consequences of different options.

#2). We earn our fee based on how well we perform in saving you money.  We charge a percentage of the amount of money we save you. So we have every incentive to grind it out in tough negotiations to save you maximum dollars.

These “so-called debt relief” companies charge you based on how much debt you start out with.  They charge the same amount regardless of how much the settlement is discounted. And, their fees are much higher than ours.  In fact, on a $35,000 debt, their fee would be 4 times greater than ours.

#3). Our skilled negotiators work closely with you to understand your circumstances and goals, so they can reach the best settlement terms for you.

With those other companies, don’t expect to ever speak with a negotiator. Your account will either be settled “in-bulk” (off a spreadsheet) or by a person working for the company who has never spoken with you – and who has ZERO incentive to get you the best settlement terms.

#4). If you get sued before an account is settled, our attorneys will continue the negotiation process to reach a settlement and continue to advise you.  On the other hand, if you’re enrolled with a "debt relief company," and you get sued (and you might – because the monthly payment you are making is not going to the accounts that have not been settled), they can no longer represent you. So you’ll be on your own, or they may refer you to a law firm requiring you to pay a retainer fee.

The fee for our services is performance-based. Unlike the “so-called debt relief” companies, we earn our fee according to how much money we save you.  Those “debt relief” companies (and even some other law firms) charge on the amount you currently owe to the creditor, so there is NO incentive to get you the best settlement.

Our standard fee is 10% of the amount that our negotiation services save you, plus $500 per account. That means that, besides our fiduciary responsibility to do our very best for each of our clients, we also have a financial incentive to get you the very best settlement.

Competitors typically charge 25% of the amount that you owe.  So they make the same (much more than our fee) whether they provide you with a 20% discount or a 50% discount. With that pay schedule, how hard do you think they will work for you?

Here’s an example. If you owe $32,000 on an account, and we settle for 50 cents on the dollar (or a $16,000 settlement), our fee will be $2,100 ($1,600 plus $500).  A typical “debt relief” company will charge $8,000! (25% of the $32,000 balance) – regardless of the settlement amount.

Yes, you can negotiate with creditors on your own. The question is, do you want to?  

First off, our research confirms that our clients pay less to settle a debt even when adding our fee compared to when a business owner handles it on their own or hires a “so-called debt relief” company.  For this reason alone, we suggest you call our firm for a free consultation and settlement strategy.  

Also, there are risks associated with trying to handle the negotiation on your own. Those risks include:

1. Saying the wrong thing during the negotiation, which provides the creditor with leverage.
2. Accidentally or mistakenly providing the creditor with clues on how to serve you with a lawsuit.
3. Putting yourself in a position where you must be evasive to the creditor’s questions, allowing them to gain leverage.
4. Failing to negotiate key details in the settlement agreement terms.

Here’s an example. Invariably, a creditor will ask point-blank questions about your financial hardship, about your business, about your income, about your personal assets, and your source of funds to settle. When these questions come directly to you, it’s difficult to know what the right response is, and it is too easy to say too much. And, all too often, people say the exact wrong thing. Or, they dance around the question so as to lead the creditor to draw conclusions detrimental to the business owner.  

An experienced third-party negotiator is in a much better position to address these types of questions.

The answer depends on several factors, such as, how many months the account has been delinquent, whether or not you are at risk of a lawsuit or have already been sued, and if there is another reason to complete the settlement quickly. With that said, the typical negotiation and settlement will generally take 4 to 6 weeks once the account is at least six months delinquent. This time frame allows for multiple counter-offers which will be in your best interests to obtain the greatest savings.

The process may go more quickly, however, if you are at risk of a lawsuit, in jeopardy of bank levy or lien, or have some special reason to complete the settlement by a certain date (such as if you are trying to buy a house). In any case, however, it is also essential that you first have the available funds to settle any particular account, or are in a position to make monthly installment payments. 

Every situation is unique, so only after we learn about your specific set of circumstances can we provide you with an estimated settlement range.  

Factors which affect settlements include:

1. The dollar amount owed on the debt.
2. The creditors' internal guidelines for settlement.
3. How many months the account has been delinquent.
4. Whether or not you have money to pay a lump sum settlement or need monthly installments.
5. Whether or not you have been sued.
6. Whether or not you have assets, such as home equity.
7. The type of account (credit card, line of credit, lease, judgment, MCA, etc.).
8. The information stated on the initial application for the debt.
9. Whether or not you are still operating the business.
10. Whether or not the original creditor still owns the debt or if the account has been sold, and more.

With that said, it is common for our clients to receive discounts of 50 to 70% of the actual amount owed. Of course, sometimes the discounts are deeper, but that is usually when the account is very aged and sometimes when the creditor is barred from suing.  So if you have heard stories of creditors settling for 5 or 10 cents on the dollar, be advised – those are exceptional cases.

We make the process as easy as possible for you. We’ll notify the creditor that we represent you, and we’ll handle all the creditor's calls. (Note: during the first 90 days of delinquency, the creditor may also contact you even after we have notified them of our representation).

To keep things moving smoothly and so you can get the resolution you want, communication with our firm is really key.  We’ll keep you informed of everything going on using your preferred communication method – email, text messaging, or phone calls.  We ask that you communicate back with us, so we know if you have available funds to settle (or when you might) and to learn if there have been any changes in your circumstances.

Also, before we reach a settlement, we will provide you with the proposed terms and ask for you to respond to us in writing (usually email or text) stating your agreement.

Also, unlike how those “debt relief” companies operate, you will not be sending in money prior to a settlement being reached.  You keep and save your money on your own for greater flexibility.

Our negotiators will do all that they can to reach settlement terms that match your goals and financial means. Generally, settlements that require a lump sum payment may offer the greatest discounts. In some cases, settlements paid over 3 or 4 monthly installments have the same discount as those paid in a lump sum.

We also negotiate attractive settlements payable in monthly installments lasting from 12 months to 60 months. Other times, depending on the size of the debt and our client’s financial situation, we’ll set up repayment plans for an even longer period of time.

Yes. If you have personal debt, such as credit cards, personal loans, or lines of credit, we are happy to add those accounts to our Services Agreement as long as the account has a balance owed of $5,000 or more.

No, in order for a creditor to agree to accept less than the full amount that you owe them, you will need to be at least 90 days delinquent.  Prior to that 90 day delinquency period, the creditor may, however, offer other “work-out” options like a temporary reduced interest rate.

Debt settlement is an option for business owners who have reached a point where they can no longer stay current on their monthly payments.

Before we can offer advice as to what direction might be best for you, we must first review the answers to the following questions:

1. Are we dealing with a business entity (such as a corporation or LLC) or a sole proprietorship?  This is relevant because business entities do not receive a discharge of debts (or elimination of debts) in bankruptcy.  Only individuals may receive a discharge.  
2. If the business is a corporation, LLC, or partnership, have the owners provided personal guarantees on the debt?
3. Are any of the debts secured (such as business equipment loans)?  And, are any of the debts non-dischargeable (such as payroll taxes)?
4. Will the business continue to operate or close down?  If it continues to operate, what is the cash flow?  If it closes, what assets and what income does the owner have?

Your attorney will review this information with you, and based on the answers, and can provide you with pros and cons and a direction that will match with your goals.