Those of you using my Business Plan System know I am a proponent of only working commercial debt cases rather than personal debt cases. There are a few reasons for this.
First, there are a number of consumer protection laws and requirements for debt negotiators representing individuals. These can be cumbersome and complicated requiring lengthy disclosures to all parties involved. Commercial (or business related) debts do not typically carry this requirement.
Second, emotions usually run higher for both creditor and debtor for personal debts making a discounted settlement much more difficult. If the creditor is an individual, they often won't rest until the debtor (be they a person or business) feels the "pain" of having to pay in full. Similarly, if the debtor is an individual, they may have too many personal feelings attached to making a payment of any kind. For the most part, business owners on both sides are more interested in getting back to running their businesses and would rather just put the matter to rest as quickly as possible.
Third, debtor individuals may have fewer resources available to make a settlement payment and pay the debt negotiator's fee.
Although anyone in this profession may work either type of debt case if they are properly equipped, I recommend sticking with only commercial debts to make the best use of time and resources. The cases are numerous, the dollar amounts are often larger and the fees are usually easier to collect.
Scott F. Soape
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