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
Tuesday, May 4, 2010
Commercial (NOT Retail) Debt Resolution
A student recently referred me to a debt resolution Internet webinar to which he had received an invitation. The invitation indicated this person had "found a select group of people who are quietly using debt settlement as a "secret" revenue stream to massively increase their monthly cash flow...". The invitation went on to say "collectively, these experts are earning TENS OF THOUSANDS of dollars a MONTH in debt settlement, most PART TIME!" (their emphasis). Of course, "collectively" could mean that 1000 "experts" are only earning $10 or $20 per month, but I digress.
Always eager to learn new or "secret" ways to generate revenues in this profession, I decided to listen in on the webinar.
Sadly, this turned out to be yet another situation where someone has found a way to take advantage of the unfortunate folks who find they have more debt than they can handle. The "secret" revenue stream involved signing people up to reduce their debts on a regular payment plan while skimming a percentage fee for this service off the top of each payment. The only difference was that this program was directed at out of work real estate professionals looking for income ideas.
No real assistance was involved and, if people were to do this themselves, they would pay off their debts much earlier for less money. These so called services have given debt resolution (or settlement) a bad name for good reason and have resulted in increased regulation on the consumer / retail side of the profession to protect vulnerable individuals.
My Commercial Debt Resolution Business Plan System teaches people how to work with BUSINESSES and / or BUSINESS OWNERS to resolve their past due or disputed BUSINESS DEBTS on a case-by-case basis. Fees are agreed upon up-front in a written contract and are earned only for results. They are only paid upon acceptance of each settlement by the business and not skimmed from any ongoing payment plans.
I encourage people to avoid consumer / retail debt settlement situations for many reasons (please see previous related blog posts). This new twist is just the same song with a different tune and should be avoided as well.
With the information from my Business Plan System, anyone can earn substantial, ongoing and HONEST fees in the Commercial Debt Resolution profession.
Scott F. Soape
Always eager to learn new or "secret" ways to generate revenues in this profession, I decided to listen in on the webinar.
Sadly, this turned out to be yet another situation where someone has found a way to take advantage of the unfortunate folks who find they have more debt than they can handle. The "secret" revenue stream involved signing people up to reduce their debts on a regular payment plan while skimming a percentage fee for this service off the top of each payment. The only difference was that this program was directed at out of work real estate professionals looking for income ideas.
No real assistance was involved and, if people were to do this themselves, they would pay off their debts much earlier for less money. These so called services have given debt resolution (or settlement) a bad name for good reason and have resulted in increased regulation on the consumer / retail side of the profession to protect vulnerable individuals.
My Commercial Debt Resolution Business Plan System teaches people how to work with BUSINESSES and / or BUSINESS OWNERS to resolve their past due or disputed BUSINESS DEBTS on a case-by-case basis. Fees are agreed upon up-front in a written contract and are earned only for results. They are only paid upon acceptance of each settlement by the business and not skimmed from any ongoing payment plans.
I encourage people to avoid consumer / retail debt settlement situations for many reasons (please see previous related blog posts). This new twist is just the same song with a different tune and should be avoided as well.
With the information from my Business Plan System, anyone can earn substantial, ongoing and HONEST fees in the Commercial Debt Resolution profession.
Scott F. Soape
Tuesday, April 13, 2010
An Improving Economy Improves Our Business!
You would be right to think that down economic times are good for the commercial debt resolution business. During down times, many debtor companies find themselves unable to pay bills they could otherwise afford. Obviously, these companies need our assistance to work out settlements and / or payment terms with their creditors.
However, when the economy improves and these same debtor companies start to see additional revenues flowing in, our business will also benefit.
Here's why...
If a debtor company has been able to weather an extended downturn in business and keep their creditors at bay, they could be in a position to offer lump-sum settlements to these same creditors when business turns around for the better. Or, they might simply want to set up payment plans to shrink their debts more quickly with their new improved cash flow.
Whether or not the commercial creditor is aware of your client's improved finances, they may still be willing to do whatever it takes to start receiving payments.
Approaching debtor companies with your "NO RISK" offer to settle debts as they are seeing increased revenues can be your easiest cases to land.
Scott F. Soape
However, when the economy improves and these same debtor companies start to see additional revenues flowing in, our business will also benefit.
Here's why...
If a debtor company has been able to weather an extended downturn in business and keep their creditors at bay, they could be in a position to offer lump-sum settlements to these same creditors when business turns around for the better. Or, they might simply want to set up payment plans to shrink their debts more quickly with their new improved cash flow.
Whether or not the commercial creditor is aware of your client's improved finances, they may still be willing to do whatever it takes to start receiving payments.
Approaching debtor companies with your "NO RISK" offer to settle debts as they are seeing increased revenues can be your easiest cases to land.
Scott F. Soape
Thursday, March 11, 2010
Overcoming Objections
I recently had an inquiry from a new student about overcoming common objections and I thought I would share my thoughts here.
Perhaps surprisingly, you will find that many debtor business owners are simply in denial about their past due debts. If they do not have the resources available to pay, they often ignore the demands for payment. Unfortunately, there is not much we can do about that kind of attitude apart from explaining we intend to save them as much as possible and they will have full control over whether they accept or reject the final settlement terms. Usually these folks just ignore all correspondence and phone calls regarding their debts.
Other business owners will have a "come and get me" attitude and just don't care if a judgment is issued against them for a debt. Their rationale is "there are no assets so who cares about judgments or liens". Plus, if the business is incorporated and the owner is not named as a defendant, they can shut the doors and walk away without any personal liability. Again, offering to negotiate a settlement on a no results / no charge basis could land a paying client in this situation... they have nothing to lose and potentially a great deal to gain.
Sometimes a prospective client will indicate they plan to use their attorney. You can suggest these folks allow you to attempt a settlement first and, if you can't reach acceptable terms, they can always use their attorney (nothing to lose).
On rare occasions you might have an objection to your fee. Explaining you plan so save them substantially more than your fee can usually land these clients.
My complete commercial debt resolution Business Plan System provides a powerful sample prospect letter that often results in new clients calling you for assistance. Also included is a sample prospect script to use for your follow-up calls which is usually enough to garner business. Although objections are rare, using the above suggestions to overcome them should help you quickly build a profitable practice.
Scott F. Soape
Perhaps surprisingly, you will find that many debtor business owners are simply in denial about their past due debts. If they do not have the resources available to pay, they often ignore the demands for payment. Unfortunately, there is not much we can do about that kind of attitude apart from explaining we intend to save them as much as possible and they will have full control over whether they accept or reject the final settlement terms. Usually these folks just ignore all correspondence and phone calls regarding their debts.
Other business owners will have a "come and get me" attitude and just don't care if a judgment is issued against them for a debt. Their rationale is "there are no assets so who cares about judgments or liens". Plus, if the business is incorporated and the owner is not named as a defendant, they can shut the doors and walk away without any personal liability. Again, offering to negotiate a settlement on a no results / no charge basis could land a paying client in this situation... they have nothing to lose and potentially a great deal to gain.
Sometimes a prospective client will indicate they plan to use their attorney. You can suggest these folks allow you to attempt a settlement first and, if you can't reach acceptable terms, they can always use their attorney (nothing to lose).
On rare occasions you might have an objection to your fee. Explaining you plan so save them substantially more than your fee can usually land these clients.
My complete commercial debt resolution Business Plan System provides a powerful sample prospect letter that often results in new clients calling you for assistance. Also included is a sample prospect script to use for your follow-up calls which is usually enough to garner business. Although objections are rare, using the above suggestions to overcome them should help you quickly build a profitable practice.
Scott F. Soape
Friday, February 26, 2010
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
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
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