| As an alternative to corporate bankruptcy under | | | | Some Tips On Doing Your Own Debt Negotiations |
| Chapter 11, some companies seek help using business | | | | First understand that there are no debtor's prisons. If |
| debt negotiators. While firms offering debt negotiation | | | | you cannot pay your creditors because of a failing |
| look good, you should be careful which one you use. | | | | business, you are not a criminal. As long as you has |
| Many of them are in trouble because of false claims | | | | not been involved in fraudulent activities, your creditors |
| and promises. | | | | cannot threaten you will jail and they do not have the |
| How Business Debt Relief Works | | | | right to harass you personally. |
| Firms advertising business debt relief negotiate | | | | Second, you must stand your ground with these |
| reduced interest rates and payments to your creditors. | | | | creditors. Creditors will call you day and night. Each one |
| Many troubled companies use them instead of going | | | | will demand that you pay them before anyone else. |
| through a long formal bankruptcy process. If you go | | | | Make the decisions that are right for your business's |
| this route, all you have to do is pay the firm's service | | | | survival. Determine your own priorities on who |
| fee. | | | | absolutely must be paid and in what order. Also do not |
| Before you decide to use a debt relief firm, there are | | | | ever post date a check to pay someone, even if a |
| several things you should know. First, make sure this | | | | creditor asks for it. This can get you in bigger trouble. In |
| firm does not work the "collections" side of debt | | | | fact sometimes, this can be interpreted as check |
| negotiations. This means they are working both sides | | | | fraud. |
| of the equation. They may claim this gives them | | | | Third, do not make promises you cannot deliver on |
| leverage. But you must ask yourself, "do they have | | | | with creditors and collection agencies. Do not take |
| my best interests at heart?" The answer is, probably | | | | money needed to operate the business and pay |
| not. However if you do want to use a debt negotiation | | | | unsecured debts. Remember the only hope you have |
| firm, talk to several. Compare how much each one is | | | | to pay your creditors is to turnaround your business. |
| going to save you and make sure you feel | | | | You cannot do this if the business does not run. |
| comfortable with their operations. | | | | Finally, remember that most creditors would rather |
| Second, consider that you can do your own | | | | reach an agreement out of court as opposed to in |
| negotiations with creditors as well. Be aware that it | | | | court. Court caseloads are high costly and judges |
| may be more difficult. Sometimes it helps to have a | | | | would much rather see these matters negotiated |
| third party involved. If you negotiate yourself, your | | | | outside the courtroom. So stand your ground, don't do |
| creditors may not give you much of a break and you | | | | anything illegal to get business debt relief, and focus on |
| will find it to be an emotionally trying experience. But | | | | making a profit. You may just pull your business out of |
| you can handle matters yourself. | | | | the fire. |