subject: Debt Settlement Protection Act - How Small Businesses Can Legally Eliminate Debt [print this page] Debt Settlement Protection Act - How Small Businesses Can Legally Eliminate Debt
Debt settlement for individual consumers and for small business is all the same. There are no difference in the two. The company or the settlement firm which deals with settlement for individual consumers is also capable of dealing with settlement deals for small and start up businesses. The basic requirements for settlement remains the same and the small businesses are required to have at least $10k of unsecured loan to be able to avail negotiation.
The owner of the business needs to go delinquent on advice of the negotiator from the firm hired and then when keep quiet and watch. The negotiator will contact the creditor when the creditor sells off the debt to a collection agency for recovery at a price of 20 cents to 30 cents per dollar. This sale takes place only after the small business goes delinquent and the creditor waits for 90-120 days. The negotiator at that point of time will over at least 30-50% of the debt repayment in bulk on the following conditions: first, the creditor needs to waive the remaining dues and second, the business unit comes out of debt completely clean without any spot on credit history and credit score.
To make the creditor agree to this offer, the negotiator states that the business unit will file for bankruptcy leading to complete loss for the creditor in case the lender refuses to agree to the deal offered by the negotiator on behalf of the business. The lender agrees to the deal and wipes off at least 50% due and the business unit then needs to repay the rest in bulk to the creditor. This is how the small businesses can legally eliminate debt.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement.
