Why should I hire Commercial Debt Solutions to help my business?
We have more than 25 years of experience in the industry, a stellar reputation, and a 97% success rate. We are a fully staffed, professional firm, handling majority of our clients’ issues in-house. We offer the most comprehensive suite of services in the industry, designed to present our clients with solutions and programs that are specific to their unique circumstances. Most companies offer one or two solutions, and claim those solutions are appropriate for everyone. Our experienced account executives take the time to get to know and analyze your business and your situation, so that we can be sure the solution we offer and the program you enter into, will actually solve your problem in the immediate future, as well as insure a long term survival and prosperity of your enterprise. If you enter one of our Debt Resolution programs, you do so knowing it is the right choice for you and your company.
Who does Commercial Debt Solutions work for?
Commercial Debt Solutions is an opposite of a collection agency. We are performance-based business advocates. We work entirely for you, our client. We go to great lengths to assure that you make the right decision in dealing with your debt problem. If we need to negotiate with your creditors, we do so with only your interests in mind. Many companies can’t say that.
How much can I expect to save with Commercial Debt Solutions?
We are able to achieve average savings of 57½% off of our clients existing unsecured debt, with savings ranging from 35% to 80% of the total balance, and a workable and affordable payment plan. For example, a company with $20,000 in credit card debt will pay around $60,000.00 over a period of 15 to 20 years if they make normal payments, and that's if they never use the cards again! With our intervention, that same company can satisfy this creditor for around $8,500.00, with a lower monthly payment than they are making now! As you can see, our programs can literally save you and your business thousands of dollars!
Should I consider Bankruptcy?
When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11.
In Chapter 7, the business ceases operations; a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount is returned to the owners of the company. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court.
Chapter 11 bankruptcy retains many of the features present in all, or most bankruptcy proceedings in the United States. It also provides additional tools for debtors as well. Most importantly, 11 U.S.C.§1108 empowers the trustee to operate the debtor's business. In Chapter 11, unless appointed for cause, the debtor acts as trustee of the business.
Bankruptcy affords the debtor in possession a number of mechanisms to restructure its business. A debtor in possession can acquire financing and loans on favorable terms by giving new lenders first priority on the business' earnings. The court may also permit the debtor in possession to reject and cancel contracts. Debtors are also protected from other litigation against the business through the imposition of an automatic stay. While the automatic stay is in place, most litigation against the debtor is stayed, or put on hold, until it can be resolved in bankruptcy court, or resumed in its original venue. If the business's debts exceed its assets, the bankruptcy restructuring results in the company's owners being left with nothing; instead, the owners' rights and interests are ended and the company's creditors are left with ownership of the newly reorganized company.
All creditors are entitled to be heard by the court. The court is ultimately responsible for determining whether the proposed plan of reorganization complies with the bankruptcy law.
Chapter 11 is reorganization, as opposed to Chapter 7 liquidation. Debtors may "emerge" from a Chapter 11 bankruptcy within a few months or within several years, depending on the size and complexity of the bankruptcy. The Bankruptcy Code accomplishes this objective through the use of a bankruptcy plan. With some exceptions, the plan may be proposed by any party in interest. Interested creditors then vote for a plan. Upon its confirmation, the plan becomes binding and identifies the treatment of debts and operations of the business for the duration of the plan.
In a vast majority of cases, Commercial Debt Solutions is a viable, and sometimes, the only alternative to bankruptcy. We will use all of our experience, expertise, and resources to come up with a plan that will keep you and business and help you prosper. If we do come to conclusion that there are no alternatives to bankruptcy, Commercial Debt Solutions, it’s attorneys and accountants can assist you in keeping the process orderly, organized, and as painless as possible, while maximizing the value of your assets. However, we should reiterate, that bankruptcy is a solution of the last resort, and should only be considered in the most severe cases, after much advice and consultation. Please keep in mind that bankruptcy will remain part of your credit history for 10 years and carries a much greater stigma in other aspects of your life. Additionally, October 2005 changes in the law, made declaring bankruptcy more difficult.
Commercial Debt Solutions has the resources and expertise to help you reach the right decision!
Can you guarantee results?
Because we actually negotiate with creditors and do not have pre-arranged terms, every case is different. We can use our experience to give you an estimate of what we think will occur. Actual results will vary due to many considerations. However, Commercial Debt Solutions has a performance-based fee structure-the only company in the industry to offer such terms –meaning that we do not collect a dime until we have performed to your satisfaction. We have an astounding, industry-leading, 97% success rate. We will achieve results that you are looking for, or you pay nothing –that is our guarantee!
How long before I start seeing results?
You will see perceptible results immediately –as soon as you sign and we submit to your creditors “Power of Attorney” and “Appointment of an Agent” forms –harassing calls and letters will cease. From that point on, your creditors are on notice to communicate only with us –you’re appointed representatives. When it comes to negotiating debt, in some cases, we may be able to settle your first account within five business days. In other cases, it can take as long as three to six months. It really depends on your business’ specific circumstances, the amount of debt, the creditors we are negotiating with on your behalf, and many other factors.
Should I make payments in the meantime?
Based on program qualifications, you have indicated and demonstrated an inability to make contractual payments to your creditors. That being true, you have, however, indicated a desire to reach an agreement with your creditors that is acceptable to both parties and allows you to continue operating without resorting to bankruptcy. If we are at the stage where no agreement with your creditor(s) has been reached and formally accepted, continuing to make payments is up to you. Our position is that your creditors have been notified of your inability to pay and that is why we are intervening. However, once a formal resolution (Accord and Satisfaction Agreement) has been reached and executed by both your creditor and you, you are required to make payments according or in excess of amounts agreed to in that contract. If you find yourself in a situation where you are unable to fulfill the terms of the new contract, we strongly encourage you to contact us well in advance of when the next payment is due, so that we can once again try to step in on your behalf. Failure to make, or in some cases even being late on one payment, will cancel the new agreement and revert your debt to its original amount and status, while damaging your and our credibility with your creditor. At that point, if our efforts are unsuccessful or you are continually unable to keep your end of the program, Bankruptcy may have to be considered an option.
What will the creditors do if they don’t get payments?
Most creditors and collection agencies are professional organizations and are familiar with laws, statutes, and regulations, as well as Fair Debt Collection Act, and rules of professional conduct. Therefore, once we are retained as your representative and they are notified (usually within hours of signing of initial documents), they will cease any direct contact with you or anyone else at your business. In rear cases, if they continue to call and write letters., or make outrageous and threatening statements in an attempt to get you to pay them or fire us and deal with them directly, we strongly encourage you to notify us immediately and we will put a stop to such harassment. This is one of the reasons we have litigation attorneys on staff –so that we can address any and all problems that might arise quickly and professionally. One of the most significant parts of this program is to allow us to deal with them exclusively. Remember, they are professional collectors and know exactly the things to say to get you to react. You hired us because you want a professional dealing with this matter on your behalf and behalf of your business, so it is imperative that you allow us to do our job. We will show you the best ways to defuse them and re-direct them to us. Just keep in mind, no matter what they say or how they say it, they are not your friends and their only motive is to separate you from your money.
Can creditors choose to take legal action?
In rare cases, at the time when we step in, the accounts have been referred to an attorney for possible lawsuit. Our staff attorneys will work very hard to avoid this and do their best to resolve it, should it get that far. Lawsuits occur on less than 1% of accounts, when said accounts have formal representation, and even fewer ever get collected. All of the creditors are cognizant of these facts and are mindful of costs associated with litigation.
Does your fee have to be paid all at once?
First and foremost it is important to remember that Commercial Debt Solutions is performance-based. Therefore there are no fees to speak of until we have performed a service for your business. Secondly, your ability to pay our fees is a part of initial evaluation, and is taken into consideration when we negotiate with your creditors. In some cases, at our discretion, we might be able to extend payment terms on our fees; on a rare occasion, our account executive might determine that for both your protection and ours, a deposit on the fees might be required. In these cases, your deposit goes into the client trust account and remains there until you formally release it as payment for services performed. As mentioned earlier, this occurs very rarely, and is done for your protection as well, as non-payment of our fees will cancel any deal that we might have negotiated for your company.
Will I have to pay income taxes on the money I save?
It is possible that you will have to pay taxes. This is a complicated issue but the short answer is –creditors may send you form 1099 for any discount they give over $600. The IRS calls this discount-Debt Forgiveness. Debt Forgiveness is taxable to the extent of your solvency. It may also be possible to offset some of the fees paid for services provided. You should discuss this with either your tax adviser or one of our taxation specialists, should it occur. The good and the bad of it is that you will still always save significant amount of money as compared to the other alternatives.
How will my money be handled throughout the process?
At every stage in the process, Commercial Debt Solutions and its employees, act as agents and advocates on behalf of your business. At the initial stages of evaluation, together with the account executive assigned to your case, you will determine an amount that you can afford to pay towards satisfaction of your business’ existing debts and we recommend that you set this amount aside each month. We recommend that a bank account be established for this purpose that is kept separate from your every day operating funds. Beyond that point, we have no control or desire to control your company’s money in any way, shape, or form. Making timely payments to your creditor(s), according to the terms of settlement(s) we have been able to reach on your behalf is your sole responsibility, unless you make specific request and make arrangements to expand the scope of our involvement.
How do I know what is the current state of my accounts?
We encourage you to stay in constant contact and close collaboration with the account executive that is handling your case. He or she will be in-touch with you when every time there are developments in your case, and a written progress report will be generated for your review at the end of each month.
What is an Account Executive?
Unlike most companies that let you deal with a customer support department, we assign every client their very own Account Executive. The Account Executive is that individual you have or will meet with at your initial appointment, a highly-trained business professional that performs all necessary analysis of your business, and upon consultation with our attorneys, tax professionals, and anyone else he or she feels would be beneficial to consult with to achieve the best results, creates and provides you, our client, with proposed solutions, as well as manages implementation of the solution you choose for as long as you remain our client. He or she is your primary point of contact and is responsible for your welfare while you are our client. Account Executives are judged based on your results and satisfaction. Even if you deal with someone else within the company, the Account Executive is ultimately responsible. We have received accolades from many clients over the efficiency of this system.
Do we get the fees we have paid refunded if creditor does not honor the new agreement?
Accord and Satisfaction Agreements are contracts that are legally enforceable. If any creditor fails to abide by the terms of the settlement we have reached on your behalf at no fault of yours, our legal department is here to help at no additional charge. However, if you have violated terms of said contract even once, without giving us a prior opportunity to try and help, than all fees paid are non refundable. Settlements do not happen overnight and we spend a great deal of time and effort getting to the point of settlement. Remember, unlike Debt Management, there are no pre-determined settlement arrangements made. We have to strategically negotiate with creditors to allow your money to work best for you. In some cases, we are stalling and keeping creditors at bay until you have accumulated a sufficient amount to reach a settlement. In fairness, we ask that you abide by the terms of these hard fought for contracts, or give us a chance to try to save the situation once again, if you absolutely cannot. If neither happens –we consider our duty and obligation to you fulfilled and our fee justly earned. Therefore all fees, if collected, are non refundable.
I heard I can do this myself, is that true?
Commercial Debt Solutions and its predecessor, Business Financial Negotiators have been in business for over 25 years and have worked very hard to earn respect and reputation among its peers and creditors, as well as to stay current on all the laws and statutes that govern our activities. We employ the best and the brightest to maximize results for our clients. We have had many occasions where business owners and executives have chosen to try and negotiate with their creditors on their own, especially given current state of the economy. In almost all cases, the results were disastrous and these companies often found themselves as our clients anyway, or in some cases, in Bankruptcy court. You can also represent yourself in a court of law, but would you? So can anyone do this? Technically, anyone can do this, but in reality, it’s not for everyone. In doing this yourself, you need to be prepared to deal with professional collectors yourself.
Does Commercial Debt Solutions offer credit repair?
We do not offer credit repair. Anyone claiming to be in business of credit repair is either committing a fraud or is trying to defraud you. Commercial Debt Solutions works closely directly with all three credit bureaus in order to correct all inaccuracies that might be in your company’s credit report; we negotiate with your creditors in such a way that mandates preservation and, in many cases improvement of your credit standing; and finally, we report a new, positive line for you, upon successful completion of your business with us. These are the only legal steps available to improve any company’s credit rating.
Do you help me make sure this problem never happens again?
Absolutely! Although we cannot force you to participate in any of our supplemental activities, or use any of our additional services, majority of which are free of charge to our clients, we strongly recommend and encourage you to do so. As part of the evaluation of your business, at the very beginning of the process, our account executive will discuss with you your visions and plans for the future of your company. You would have an opportunity to have your existing business and marketing plan evaluated by a seasoned professional, or create one. In addition, we encourage you to make use of all of the resources and strategic partnerships that Commercial Debt Solutions has formed over the years and found on our “Resources” page, ranging from free business coaching through a local chapter of SCORE to advertising, printing, marketing, and even sales coaching services, to name a few. Our account executives and other staff members at their request and direction will do their best to ensure the long-term success of your enterprise.
This process sounds easy. Is it?
We wish we could say that it is. In life, there is no free lunch. You may have uncomfortable and frustrating moments during your time with us, but we do our utmost best to keep that to a minimum. Perhaps, creditors are calling or you are receiving threatening letters –we will put a stop to that and provide you with the breathing room to run your business. Coming up with the required payments each month may be painful on some occasions, especially when an obstacle is thrown in front of you, but we work with you to make sure they stay within a comfortable range for you. Our sincere hope is that our handholding and professionalism makes the process a bit easier. We also hope that when you finish the program and achieve all of the goals you have set at the initial interview, you will feel a sense of great accomplishment, yet at the same time, remember the pain just enough to assure that you avoid the pitfall that brought you to us in the future. This is one line of business where though we are grateful for the referrals, we don’t want any return business.
How do I begin?
The first step is to schedule an-person consultation with one of our account executives in order to assess your situation. That can be done by either filling out a “Contact” form by clicking on the button on the right or calling our tall free number: (877) 684 - 3631.