Disputed Debts

Most cases you work will be due to cash flow problems with the debtor business. Negotiating settlements for these cases simply entails convincing the creditor they should take whatever is being offered or risk receiving even less.

Occasionally, though, you will come across cases where the debtor business disputes the amount claimed to be due, either in part or in total. These cases require a different negotiation strategy. If the debtor business is not willing to pay ANYTHING, it is probably best to move on to another case rather than wasting your time. However if your client is willing to pay at least a portion of the amount claimed to be due, you will have a chance of reaching a settlement.

Ask your client for a dollar amount range they would find acceptable and start your offers with the creditor on the low end. You will quickly know if the creditor is willing to negotiate and take less than the original claim. From there, it is just a matter of a little back-and-forth with counter offers until a final amount is agreed upon.

Disputed debts are a little trickier than other cases but the fees are just as lucrative if you can reach a favorable settlement for your client. My comlete Business Plan System provides guidlines and suggestions for negotiating all types of settlements.

Scott F. Soape