An Average Case

During your career as a professional debt negotiator, you will encounter small cases generating minimum fees of $300 or $400 as well as large cases generating fees of several thousand dollars. You will also quickly find the actual work and time involved with each negotiation is practically the same. Typically, it takes no more skill, time or effort to close a large case than it does to close a small one.

Here's an example of an average case I recently closed...

On October 31st, I located a courthouse lead where a local Yellow Pages book was suing a business for $14,800 in past due billings for an ad (these are very common). I sent the business owner my powerful "Prospect Letter" then followed with a phone call a few days later.

On November 5th, the business owner hired me to negotiate a settlement and I quickly faxed a low-ball offer to the creditor's attorney.

On November 11th, I received a fax with a counter offer from the attorney. Interestingly, the attorney's letter indicated his client "does not appear to be very amenable with negotiations from this point, but it may not hurt to counter offer". That same day, I sent him another offer for a higher amount but still considerably below his offer.

You will often find the biggest hold up in closing a case is on the creditor's end. Since an answer date for the lawsuit was coming soon, I requested and was granted an extension of several weeks from the attorney while we were in negotiations.

On November 24th, I received a fax with a final settlement offer from the attorney. The terms allowed for a substantial discount and an 18 month payment period without interest. I quickly relayed this to my client. Since this was Thanksgiving week, he asked for some time to think about it before deciding. In the meantime, I put everything in writing along with my "Closing Letter" and sent him the details.

On December 1st, my client accepted the terms and I notified the creditor's attorney who then prepared the paper work.

Although this case took just under 4 weeks to close, it really only involved a couple of short phone calls and a couple of quick faxes & form letters. My fee was $750 (a flat fee based on my initial interview with the client and my expectation for the probable outcome). The final settlement was for $11,200 to be paid in 17 monthly payments of $625 each and a final payment of $575. My client saved over $3,600 on the principal amount of the debt plus over $5,000 in potential plaintiff's attorney fees, court costs and interest on the debt.

I have closed much larger cases in less time and I have closed smaller cases that took even more time but my actual time spent in negotiations is usually about the same. Keeping your "pipe line" full of a variety of cases will ensure a steady revenue stream with cases closing on a fairly regular basis.

Scott F. Soape