An article in today's New York Times by Peter S. Goodman reports on the negative aspects of the consumer debt settlement industry. Specifically, Mr. Goodman relates the pitfalls of companies that offer to cut credit card debt for individuals. A copy of the article can be viewed online at www.nytimes.com under today's business section (you can submit a search under "Peter S. Goodman"; the article is titled "The New Poor, Peddling Relief, Firms Put Debtors in Deeper Hole ...").
This information further supports what I have been telling people for a long time... it is best to AVOID consumer / retail / individual debt resolution.
By dealing with COMMERCIAL clients only and by using my "no results/ no charge" program, you will not have to worry about the concerns outlined in the article. And, you will be able to build a long term, lucrative, HONEST, professional practice.
Scott F. Soape
Saturday, June 19, 2010
Friday, June 18, 2010
A Recent AVERAGE Case
On May 20th a new client retained my services to negotiate a discounted out-of-court settlement on his company's behalf based on an email I had sent him. His business had been sued by an insurance company that had provided worker's compensation insurance. My client had not paid premiums as billed and was sued for $10,251.
That same day I sent a low-ball settlement offer to the creditor's attorney. Within a day, I received a response declining the offer along with information indicating the attorney would be taking the following week off and granting an extension to the answer date on the lawsuit.
By the way, this creditor files many lawsuits for similar situations in my area on a regular basis. I have dealt with their attorney often over the years and I am familiar with her general guidelines for most settlements. She, in turn, knows that I can be trusted and that I can typically assist in arriving at acceptable settlement terms. My involvement saves her some time and effort with these cases.
Upon the attorney's return from vacation, I sent another offer for a little higher total dollar amount and she quickly countered with the least she would be willing to accept.
I informed my client of the final proposed settlement terms on June 15th and he accepted on June 16th. I received payment for my fee in the amount of $500 today, June 18th.
Within 4 weeks (it would have been shorter if not for the attorney's vacation) I had landed a client and completed a very favorable out-of-court settlement on their behalf... and deposited a check for a nice fee... all with about 3 or 4 quick emails.
In this case, I saved my client $2,251 on the debt PLUS over $3,400 in potential attorney's fees that could have been awarded to the creditor's /plaintiff's attorney. In addition, the settlement was set up on a no interest payment plan over 11 months. ALL parties benefited.
Keep in mind, this is just an average case generating an average fee... and I work these cases all the time.
My complete commercial debt resolution Business Plan System will show you how to do the same thing.
Scott F. Soape
That same day I sent a low-ball settlement offer to the creditor's attorney. Within a day, I received a response declining the offer along with information indicating the attorney would be taking the following week off and granting an extension to the answer date on the lawsuit.
By the way, this creditor files many lawsuits for similar situations in my area on a regular basis. I have dealt with their attorney often over the years and I am familiar with her general guidelines for most settlements. She, in turn, knows that I can be trusted and that I can typically assist in arriving at acceptable settlement terms. My involvement saves her some time and effort with these cases.
Upon the attorney's return from vacation, I sent another offer for a little higher total dollar amount and she quickly countered with the least she would be willing to accept.
I informed my client of the final proposed settlement terms on June 15th and he accepted on June 16th. I received payment for my fee in the amount of $500 today, June 18th.
Within 4 weeks (it would have been shorter if not for the attorney's vacation) I had landed a client and completed a very favorable out-of-court settlement on their behalf... and deposited a check for a nice fee... all with about 3 or 4 quick emails.
In this case, I saved my client $2,251 on the debt PLUS over $3,400 in potential attorney's fees that could have been awarded to the creditor's /plaintiff's attorney. In addition, the settlement was set up on a no interest payment plan over 11 months. ALL parties benefited.
Keep in mind, this is just an average case generating an average fee... and I work these cases all the time.
My complete commercial debt resolution Business Plan System will show you how to do the same thing.
Scott F. Soape
Thursday, June 10, 2010
You Can't Win Them All
You will encounter all kinds of past due and disputed debts during your career as a commercial debt resolution specialist. Using my time tested and proven techniques to negotiate discounted settlements for your debtor business clients will result in successful resolutions for most of your cases. However, you will not be able to resolve every case.
Although it is usually in the best interest of BOTH parties to compromise and settle these disputes for an amount less than claimed, some creditors will still demand payment in full without a discount or payment terms.
This is just part of our profession and should not be viewed as failure on your part.
Once you have been informed by a creditor or their agent that they are firm in their demand for full payment, you should quickly notify your client of such. If there is a lawsuit pending, encourage your client to retain competent legal counsel to address the situation as soon as possible. Of course, you will need to quickly refund any retainer you have received for these cases.
Most cases you encounter can be resolved to the benefit of your client (and the creditor business) and substantial fees can be earned for your valuable service. But, do not be surprised or discouraged if you eventually encounter cases that you are unable to resolve. It's just part of the business.
Scott F. Soape
Although it is usually in the best interest of BOTH parties to compromise and settle these disputes for an amount less than claimed, some creditors will still demand payment in full without a discount or payment terms.
This is just part of our profession and should not be viewed as failure on your part.
Once you have been informed by a creditor or their agent that they are firm in their demand for full payment, you should quickly notify your client of such. If there is a lawsuit pending, encourage your client to retain competent legal counsel to address the situation as soon as possible. Of course, you will need to quickly refund any retainer you have received for these cases.
Most cases you encounter can be resolved to the benefit of your client (and the creditor business) and substantial fees can be earned for your valuable service. But, do not be surprised or discouraged if you eventually encounter cases that you are unable to resolve. It's just part of the business.
Scott F. Soape
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