How to Settle Your Business Debt on Favorable Terms (and Get Rid of Aggressive Collection Agents)

If your business has accumulated debt and you find yourself struggling to pay down that debt, you are not alone. Almost every company goes into some degree of debt to fund day-to-day operations, acquire assets, and pay for business-related improvements, which is especially true for businesses during their start-up phases.

If your company’s commercial debt is interfering with your ability to keep your business running, you have alternatives that you might want to consider before turning to bankruptcy, including seeking out ways to settle your financial debt for less than you might owe.

Restructuring Business Debts

The business debt settlement lawyers at McFarlin LLP have helped many business owners restructure their business debts by negotiating with creditors to eliminate a portion of the outstanding debt and then entering into an agreement for a repayment plan that is manageable.

After trying to collect business debts over a period of time — typically 90 to 120 days — a creditor may decide that the best option is to send the account to collections. The creditor will then choose to either sue the business debtor, assign the debt to a third party who has the right to collect the debt on the creditor’s behalf, or sell the debt to a commercial debt collection agency for a fraction of what is owed.

Reducing Your Commercial Debt

Our attorneys have experience in negotiating with creditors to reduce business debt as an alternative to sending the debt into collections. While there is no legal obligation on a creditor’s part to negotiate a reduced amount, many creditors recognize the benefits of working with the debtor to come to a mutually beneficial settlement. They understand that a legal battle is not only costly, but it could force the debtor into bankruptcy almost guaranteeing that they will collect little if any of the unsecured debt. Creditors also understand that selling the debt to a collection agency ends up costing them more, so they have the incentive to settle. Of course finding a solution that works for both parties is not easy, which is why you need talented and experienced business debt negotiators.

At McFarlin LLP, our business debt settlement lawyers understand what creditors are looking for, which companies are open to negotiation, and what types of settlements they are likely to accept. We have experience working with all kinds of creditors and often go up against the same companies time and time again, allowing us to leverage our experience on your behalf.