According to forbes, a business is known to go through failures because of withstanding debts. Having business debts is not something abnormal and almost all the businesses are struggling to clear the business debts that they have. Most of the businesses prefer to settle the debts with the help of a debt settlement plan. It is important that you select an experienced debt settlement organization that is going to help you get rid of all your unwanted business debts, thereby allowing you to concentrate on the other important aspects associated with your business.
However, it is not an easy task to know about the best debt settlement organization as there are numerous organizations spread all over. It is important that you know about the features as well as qualities of a debt settlement organization so that you can easily separate the best one from the average ones.
There are certain simple ways, which can help in distinguishing a perfect debt settlement organization from the others. Outlined below are few of the considerations that need to be considered so that the experience of debt settlement is great.
The Fee Structure
Firstly, it is recommended that you hire companies, which charge a certain percentage of money, which is not huge. You should not hire any organization, which is making more money in comparison to saving you money. In this manner, the interests that they have are aligned with your interest, and they are definitely going to assist you in getting out of the unwanted situation that you are in, by paying only a certain amount of money.
There are a few companies, which are known to charge at least 15 to 20% of the debt amount that you have. If your business has a debt of say $40,000, the fees of the organization are going to be $6,000 to 8000 dollars. On the contrary, better organizations are responsible for charging only a percentage, which they are capable of negotiating for your company. For instance, if a company is capable of negotiating the amount from $40,000 to almost $16,000, they are going to charge only 25%, and the fee is going to be $6,000. If they are getting better settlements, they will earn more, and if they do not, they are going to earn less.
It is true that it is going to look similar on paper, but you need to be smart and think as to who is going to negotiate in a better manner for you. It is obvious that the organization that has the chance of earning more will negotiate in a better manner and in this case, the later kind of organization is going to help you negotiate a better deal.
Intake By Attorney vs. Salesman
Another manner of distinguishing a good debt settlement organization from the organizations that are run poorly is by asking as to who is the individual who is explaining the program to you when you are calling up the organization. Understand if you are conversing with an attorney who is qualified as well as educated about all the debt relief options that are available, or if you are talking to a salesman, who is receiving his salary on basis of the number of people that he is signing up for a debt settlement program.
Most of the huge debt settlement organizations are known to hire a smart salesman, who is going to converse with you. However, you need to understand that salesmen are not capable of providing legal advice, which is what you exactly need in the situation that you are in currently. Salesmen do not have education or experience about bankruptcy or counseling options, providing tax advice, or responding in a professional manner to the creditor harassment or repeated calls. You need to deal with an organization, which is going to educate you about the various options as opposed to merely sell any option to you.
Attorneys are capable of providing much better advice because they are capable of understanding the problems that you have. A salesperson, on the other hand, will not be able to provide any proper advice related to a debt settlement plan. You need to choose an organization that has professional attorneys because other than them, not a single person is known to have more leverage and power in front of the creditors.
Length of The Repayment Plan
One important way of spotting a plan that is going to fail is finding out if it is a plan, which has a long-term of repayment. According to expert advice, plans that are longer than almost 36 months have fewer chances of success. Debt settlement plans, unlike the debt management plans, need to get completed within a period of 36 months or even less, for gaining success.
The debt settlement organization is not going to pay to the creditors, while you are already building funds for negotiating. The debt collection machines of the creditors continue running. This eventually means that both the rates of interest as well as the penalties are getting accrued, and moreover, if you are not able to negotiate a settlement within proper time, the creditors will be responsible for filing lawsuits against you. A debt settlement lawyer is skilled and he is going to prioritize the settlements accordingly. He is going to ensure that you are not getting sued.
This is why it is crucial that you have knowledge about the terms of repayment as well as the total time that the organization is going to take for settling the debts. If it is more than 36 months, you need to consider other organizations.
It is extremely easy to go through the reviews that have been given by the other businesses who have selected the organizations that you are looking forward to choosing. If you find a company with a positive review, you should definitely opt for it. Having a closer look at debt settlement feedback is mandatory before you lock a particular company for your business needs.
Choosing an ideal debt settlement organization is undoubtedly a tedious task, but with the help of the tips that have been mentioned above, it should not be that difficult for you. Ensure that you choose only that organization, which will be able to meet the business requirements that you have.