Once again the CONSUMER debt settlement industry has drawn the attention of regulators.
Thankfully, this rule does not apply to our Commercial Debt Settlemment industry. You may click on the below link to view an Associated Press article by Candice Choi for the full story...
New rule cracks down on debt settlement industry
Friday, July 30, 2010
Tuesday, July 13, 2010
Keeping Records
Once you become a professional commercial debt resolution negotiator, you will quickly realize the importance of keeping thorough records.
Start by creating a file for each client as they retain your service. I like to record the primary contact information for my client on the inside cover of the file folder for quick reference. Keep copies of all contracts and other documents for each individual case in this file (multiple cases for one company are common).
You will also want to make notes of each and every conversation relating to a debt settlement. Date, time, name and summary of the conversation can be essential if there is ever a disagreement or failed memory by a party to the case. Always keep a clean legal pad handy for notes.
Additionally, as you work more and more cases, you may find you are dealing with the same commercial creditor and / or the same creditor agent. Keeping track of the past (or best) settlement terms will give you an edge for later negotiations.
Having the ability to review records of your past cases or even just recent communications with clients or agents will allow you to operate efficiently and professionally in a fast paced environment.
Scott F. Soape
Start by creating a file for each client as they retain your service. I like to record the primary contact information for my client on the inside cover of the file folder for quick reference. Keep copies of all contracts and other documents for each individual case in this file (multiple cases for one company are common).
You will also want to make notes of each and every conversation relating to a debt settlement. Date, time, name and summary of the conversation can be essential if there is ever a disagreement or failed memory by a party to the case. Always keep a clean legal pad handy for notes.
Additionally, as you work more and more cases, you may find you are dealing with the same commercial creditor and / or the same creditor agent. Keeping track of the past (or best) settlement terms will give you an edge for later negotiations.
Having the ability to review records of your past cases or even just recent communications with clients or agents will allow you to operate efficiently and professionally in a fast paced environment.
Scott F. Soape
Saturday, June 19, 2010
Debt Settlement Firms Under Scrutiny
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
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
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
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