Avoid Default Judgments

Many times, a creditor's attorney will file a lawsuit simply in hopes of receiving a Default Judgment against a debtor business with NO intention to actually take a case to trial.

If the defendant (debtor business) fails to file an answer to the lawsuit by or before the answer date deadline, the court is likely to award a Default Judgment to the creditor for the full amount claimed, plus attorney's fees (up to 1/3 the amount of the debt), court costs and possibly back AND future interest on the debt. Once a Default Judgment is issued, the creditor's attorney will have additional legal tools available to hunt for and attach to assets of the debtor business.

This situation should be avoided if at all possible.

Even if a debtor business does not retain your services, you should encourage them to file an answer to the lawsuit. There is a chance this will be all it takes to keep a creditor at bay and the lawsuit could be dismissed by the plaintiff without further effort on the debtor business's part.

Scott F. Soape

"Typical" Clients

I am occasionally asked: "what type of businesses are your typical clients?" by students. Below is just a partial list of companies I have assisted over the years...

Painting Contractor
Law Firm
Event Coordinator / Catering Company
Logging Company
Maid Service
Machine Shop
Furniture Store
Heating & Air Conditioning Company
Software Developer
Moving & Storage Company
Computer Store
Cigar Shop
Nursery / Landscape Business
Swimming Pool Company
Beauty Supply Business

Transmission Repair Shop

Trucking Corporation
Gutter Installer
Temporary Employment Agency
Magazine Distributor
Oil Field Supply Company
Automobile Collision Repair Shop

The point is, there are really no "typical" clients in this profession. All types of businesses encounter financial disputes at one time or another. There are ALWAYS cases to work and these situations develop all over the country on a daily basis... and my complete commercial debt resolution Business Plan System shows you how & where to find them.

Scott F. Soape

Payment Plan Calculations

Although they typically result in the best discounts, many businesses will not be in a position to make lump-sum payments to settle their problem debts. You will need to negotiate payment plans for these clients.

I always try to start negotiations with payment plans for the longest time period possible and at a 0% interest rate. However, many creditors will require some sort of interest rate if they are going to deal with extended payments. Using one of the many online calculators makes these offers simple. Here are just a few...

http://www.bankrate.com/

www.Calculator.com

www.moneychimp.com/calculator

You may need to click further to reach the "loan" calculator (auto, mortgage, etc.) on these sites. Just plug in the total amount of the settlement offer, the interest rate and the number of months (or years) and you can quickly calculate the monthly payment to complete your offer.

Of course, my complete Business Plan System provides all the information you need to negotiate ANY type of settlement.

Scott F. Soape