What is business debt settlement?
Professional third-party service specializing in negotiation and settlement of debt for businesses having difficulty meeting financial obligations
Is business debt settlement new?
No. Unlike familiar consumer debt programs, business debt programs are typically more discreet. Because debt settlement (bankruptcy alternative) is both private and may indicate a firm has experienced financial difficulty, businesses and creditors avoid publicizing settlements. Business owners may not be aware of these services as there is no requirement to publish debt settlement efforts versus publicly recorded bankruptcy filings.
What are the signs that my business might need help?
First, review your accounts payable. If one-third of your payables (in dollars) is greater than 90 days, or 1 in 3 creditors is greater than 90 days, your company may be at risk.
Next, if any creditor has taken collection actions against you, that is a strong signal to contact us.
Why should I use Corinthos & Morgan instead of negotiating settlements on my own?
Professional intervention is better for your business and focuses on reaching settlements in your company's best interest. We can get you back on track faster and more efficiently than you might manage on your own. Since Corinthos & Morgan settlements provide money to creditors more quickly than litigation or bankruptcy (an immediate creditor benefit), creditors will often waive additional fees from the original amount. Corinthos & Morgan works to keep you operating and prevent litigation.
Why should I work with Corinthos & Morgan instead of file for bankruptcy?
In most cases, we provide the same results as a Chapter 11 bankruptcy without the stressful, demeaning process. Bankruptcy is very expensive, takes control away from ownership in handling debt, and hinders the business' credit for several years. Bankruptcy is a high-cost legal process. By working directly with your creditors, Corinthos & Morgan saves you money, time, and protects your reputation. In some cases, bankruptcy is the best alternative, but it should be considered the last option. As we tell our clients, you can always start the bankruptcy process if your creditors refuse to work with you; however, once you declare bankruptcy there is no going back.
If I can't afford my debt, how will I afford Corinthos & Morgan?
You can't afford not to address your debt. If you are not properly prepared, when you speak with a creditor you may be giving them reason to not reduce your debt. Creditors ask for documents they are not entitled to see, make improper threats, or may contact other vendors. Corinthos & Morgan helps businesses just like yours every day. We know exactly what creditors can and cannot do—we understand national and industry-specific issues that impact your business, and we use that information throughout the negotiation process.
When is the best time to assign debts to Corinthos & Morgan?
The sooner, the better. If a debt is 90 days past due, creditors may add costs to the original amount, especially if the debt is sent out for collections. Corinthos & Morgan can help buy time to pay the settlement, which is particularly helpful if your business is cyclical or experiencing a temporary setback. Though we recommend you contact us early, we recognize that is not always possible. We assist businesses no matter how old their debts—we have the ability to settle any type of liability, judgment, lien, or levy.
Is it hard to start a settlement case with your Firm?
Not at all! Use our contact form or give us a call and most likely we will get in touch with the attorney to start negotiations that same day. That's it!
Can I also work out a long term payment schedule?
Absolutely, and sometimes even on a settlement at about half with a short schedule.
How long does it take to settle the debt?
Typically it takes about 2-3 week, but can be as little as 48 hours!
How much can I save using your Firm?
We settle most cases for about half of your debt. If you owe $20,000, your settlement will be around $12,000 saving you about $8,000 with no additional attorney fees, costs or settlement fees.
Will Corinthos & Morgan handle debts even if the business is closed?
Yes. We realize closed businesses may carry debt or owners have made personal guarantees. Resolving this helps properly close out the business without further litigation and alleviate future responsibility associated with the business.
My situation seems hopeless. Can Corinthos & Morgan still help my company survive?
First of all, things may not be as bad as you think. For more than 20 years, we have assisted businesses just like yours at every stage; from a temporary setback to complete financial crisis. We invite you to call for a FREE consultation. We may be able to offer the help you need to keep your business operating.
How do creditors react when a company hires a debt resolution Firm?
Most creditors view it as a strong and positive sign. Enlisting the services of Corinthos & Morgan signals you are taking control and making the effort to resolve these matters instead of run. Corinthos & Morgan will provide a professional analysis of your company's financial condition which helps your creditors realize the benefit of reaching a settlement.
Will creditors do business with me after I use a debt resolution Firm?
Most creditors will at least allow you to do business with them on a COD basis. Enlisting Corinthos & Morgan to assist you with your debts sends a powerful signal to your creditors that you are serious about resolving these matters. Often times, this helps restore the relationship with the creditor.
How can I maintain relationships with my key vendors?
You control which debts are assigned to Corinthos & Morgan. If key accounts are working with you, you may continue to work with them. Simply assign the remaining accounts to us and we'll negotiate less crucial settlements to free up cash flow. You have the control to assign a creditor to us at any time. If it is better for us to handle the debt, we will designate it as a critical vendor, and negotiate a settlement where you maintain your business relationship. If they refuse further credit we will continue negotiations as you buy product on a COD basis. In some cases, we've negotiated settlements that allow our clients to retain or reestablish important credit facilities even when the creditor accepted a reduced amount.
How do Personal Guarantees impact the ability to get a settlement?
it is common for small business owners to sign personal guarantees for vendors, leases, secured and unsecured loans, lines of credit, and inventory. Some business owners may be personally liable for the debt - even when a business has closed. Corinthos & Morgan understands the need to protect the personal assets of our clients. In negotiations involving a personal guarantee, we include language to prevent a creditor from pursuing personal assets after a settlement has been reached.
What types of business debt can Corinthos & Morgan handle?
Corinthos & Morgan can handle any debt submitted by a client with whom we have a signed agreement. We negotiate settlements on lawsuits, judgments, collections, past dues—basically any creditor matter at least 90 days past due.
Am I forced to accept settlements that Corinthos & Morgan secures for my company?
No. We are unique in our industry - we present settlement details for your approval before we finalize the settlement with the creditor. This applies even when we reach settlements that fall within specific, predefined requirements provided to us by you. We realize you are our client, and you have to make the payment for the settlement.
Do we have to assign all of our creditors/debt for settlement?
No. You maintain complete authority to determine which creditors and which debts you submit to us. We may recommend that you assign certain debts to us after evaluating your financial condition, but this is solely at your discretion.
Can Corinthos & Morgan help stop harassing phone calls from creditors?
Yes. When we receive Power of Attorney, we contact each assigned creditor and inform them we are your representative. Each creditor understands they must work through Corinthos & Morgan for a resolution.
What if a creditor refuses to settle and takes actions against my company?
The best time to reach a settlement with a creditor is prior to them placing the debt with collection agency or collection attorney. By turning to Corinthos & Morgan early on, we will reach settlements on the original amount of the debt without additional costs such as attorney fees, court costs, placement fees, and interest. If a debt is already with a collection agency or attorney, we have more than twenty years of experience in reducing or eliminating additional costs. We have successfully negotiated settlements on over 90% of our accounts. In the rare instance a settlement cannot be reached, we work towards an affordable payment plan. As with all settlements, you approve the settlement before it is finalized.
How will working with Corinthos & Morgan impact my credit?
First, evaluate what your credit rating is currently. If you are behind on business debts and considering debt negotiation your credit may be in jeopardy already. By working with Corinthos & Morgan your credit rating improves as you pay off each settlement. Debt resolution will not only improve your credit, it will also shore up your financial statements (i.e. balance sheet) increasing your credit worthiness.
Unless you currently have perfect credit, making payments on a debt that has been decreased more often has a positive effect on your credit report. Since debt settlements increase your cash flow while reducing total debt, the business improves its ability to obtain credit. Re-establishing credit relations with vendors, and paying within agreed terms, further improves your company's credit.
What does Corinthos & Morgan charge for their services?
Corinthos & Morgan will settle your debt at 60% of what you owe with our fee included, or you owe us nothing. We starts the process on your behalf with a modest retainer, usually about $400. It is important to note that 100% of our retainer is applied towards retiring your debt. In the unlikely event that we aren't able to negotiate a business debt settlement with your creditors, we promptly refund the entire retainer.
Are you a law firm?
No Corinthos & Morgan is a professional Business debt settlement & debt restructuring firm. We focus on assisting small businesses that are struggling financially. We do not provide legal advice or engage in the practice of law, but we do provide the specialized service of reducing your debt and returning you to profitability. If you need legal assistance, we may be able to refer you to an attorney in your area.
Wilmington, DE (855) 422-4410
Copyright (c) 2008-2017 Corinthos & Morgan, LLC. All rights reserved.
