subject: Small Business Debt Relief - How Small Business Debt Can Be Legally Settled For Less [print this page] Small Business Debt Relief - How Small Business Debt Can Be Legally Settled For Less
Small businesses form an integral part of any economy because a major portion of government revenue comes from the taxes paid by these small business. So, if you are the owner of one such small or start up business, don't feel that you are insignificant. You are important and so is your business because you help in the growth of national revenue. The recent recession caused a number of problems for the consumers in terms of debt. The same fortune was showered on the owners of small businesses. These businesses suffered a lot because their sales dropped and they incurred loss. The main reason for the decline in sales was that the purchasing power of the consumers dropped.
Now that the small businesses were in loss these businesses failed to repay the debts that they had and they became defaulters. Many closed their operations and the others were just dragging and fighting for a survival. Many reached the verge of bankruptcy because they failed to repay the creditors and became defaulters. Because of this significant loss and also because of the financial troubles associated with the option of bankruptcy filing, these business owners started looking for alternatives.
The best alternative that worked out for these companies is the same one that worked for the individual consumers. This is the method of debt settlement. With this method these small businesses managed to come out of their enormous debts and at the same time managed to retain their business operations. The method of debt settlement is a legal way of eliminating the unsecured debts that the small businesses have. All that a small business unit needs to do is to hire a professional debt settlement firm which will then advice the business unit to go delinquent. When delinquency is achieved, the creditor will sell the debt to a collection agency for as low as 20 cents to 30 cents for every single dime.
The negotiator will then contact the creditor and offer a better deal of 30-50 cents per dollar and will also threaten the lender of bankruptcy. The creditor will accept the deal because of the threat and also because the new deal will mean greater recovery. The creditor will then waive the rest of the debt and the small business will have to repay the agreed sum of money in bulk and get out of debt. This is a simple and effective method to legally eliminate debt.
With the new FTC laws recently passed, debt settlement is a legitimate alternative to filing bankruptcy. Creditors are ready to negotiate and now you won't have to pay a fee unless your debts actually settle.
