THE STEP-BY-STEP BUSINESS DEBT SETTLEMENT PROCESS

Are you worried about losing your business, because your debt is spiraling out of control, and you don’t know where to turn? You should know there is hope for you, because DelanceyStreet.com is here to help. We are DelanceyStreet.com, a top tier business debt relief company based out of NYC, that helps clients nationwide. We negotiate on behalf of business owners who need someone who understands lenders, and who can navigate the law.

WHAT IS BUSINESS DEBT SETTLEMENT?
Business debt settlement is a process that allows a business owner to negotiate with creditors in order to pay less than the total amount owed. This process that was created to help overwhelmed owners can provide a way to avoid shutting down the business. If settlement is done correctly, it can reduce the overall debt, which can save your company from default. When your company avoids default, it also avoids lawsuits that can be filed by your creditors.

WHY DOES IT MATTER IF YOU DEFAULT?
A default that was triggered by missing payments can result in harmful actions from lenders. They might sue you, garnish your accounts, or even force you to close your doors. If you violate certain contract terms on purpose, there can also be criminal allegations of fraud under 18 U.S.C. § 1343, which can lead to prison if found guilty. You don’t want to risk that, because criminal penalties can ruin your life.

GOVERNMENT RESOURCES AND YOUR RIGHTS
Before you start, you may want to review official government resources for more details. You can visit the Federal Trade Commission (FTC) at https://www.ftc.gov for information about debt collection rules. If you want details on bankruptcy and federal courts, you can see the U.S. Courts website at https://www.uscourts.gov. These websites that were created by government agencies will help you see your rights and obligations under U.S. law.

STEP 1: REVIEW YOUR FINANCIAL HEALTH
You must gather business bank statements that show your cash flow, your debt load, and all pending liabilities. This review that is supported by accurate paperwork will help you know exactly how much you owe. When you have a clear view of your debt, you can plan the settlement strategy. If you skip this step, you might miss key expenses, which can hurt your bargaining power. Missing key expenses can also lead you to misrepresent your financial status. Misrepresenting your status can be considered fraud if it’s intentional, and that can be punished by hefty fines or even jail time.

STEP 2: CONTACT A REPUTABLE DEBT RELIEF COMPANY
DelanceyStreet.com is a company that was established to help business owners nationwide, and we have experience that is invaluable when dealing with lenders. We open lines of communication with creditors, who are often open to new repayment plans. Our firm believes that good faith negotiations can prevent lawsuits, which can save you time and money. Lawsuits that are filed by your creditors can result in judgments against you, which can lead to wage garnishment and property liens. That means your personal assets could be at risk.

STEP 3: EXPLAIN YOUR HARDSHIP
You should share reasons that caused your financial distress, such as slow sales or a sudden emergency. Lenders appreciate transparency that is backed by documents, because they want to see you’re not hiding assets. If you hide assets on purpose, you can face civil penalties, and you could also face criminal consequences if the concealment is found to be intentional. Criminal consequences that involve fraud can carry long prison sentences, which can destroy your career and your future.

STEP 4: NEGOTIATE FOR A REDUCTION
We focus on getting you a reduced principal, which can lower your monthly payments or lump-sum payoff. Our team uses your cash flow statements that show your income and expenses to prove what you can afford. When creditors see your honesty, they often agree to new terms, which can lower your stress. If they refuse to accept a settlement, they could choose to take you to court, which can lead to a default judgment and significant legal fees. You don’t want that, because major legal fees can force a company into bankruptcy.

STEP 5: ENSURE LEGAL PROTECTION
Sometimes creditors will ask you to sign documents that contain confessions of judgment. A confession of judgment that was signed without reading can give the lender power to seize funds without further litigation. This can devastate your finances, because it can lead to unexpected bank account freezes. If these bank account freezes come at a crucial time, you might fail to pay your employees. Failing to pay employees can cause labor complaints, and it can damage your reputation.
At DelanceyStreet.com, we work with our sister-law firm that was created to safeguard you. We look for unfair contract clauses, which might violate your legal rights under state and federal laws. If we find illegal terms that were inserted to trick you, we will push back strongly. This defense that we provide can protect you from abusive lenders who want to take advantage of your vulnerable situation.