Settling Small Business Debt Claims
There are situations where settling a business debt for less than the original amount owed makes sense for both parties. Working with a collection attorney can help.
Three Types of Debtors
The first step in determining whether you should offer a lower payment to settle a business debt is to identify which type of debtor you’re dealing with. There are different categories of debtors that may apply.
- A customer that will do anything to avoid paying the debt.
- A customer that owes several debts and pays sporadically.
- A customer that typically pays on time but is having financial trouble.
Settlement strategy may change for each type of debtor as well as other factors such as the nature of the relationship and the amount of the debt owed. Rather than stress and guess, join LegalShield and a collection provider attorney can advise you on the best course of action.
How Much Should You Settle For?
If you decide that settling for less than you’re owed is a good option, you need to think about the amount you would be willing to accept. There are several factors that you can weigh.
- Do they owe you for a physical product or services? Have you fully delivered?
- What were the hard costs to deliver the product or service?
- What is the nature of your relationship with the debtor? Do you want it to continue?
Every situation is different and it’s wise to consult with an attorney experienced in debt settlement. Also, with a LegalShield membership, you can have your provider attorney help you draft the appropriate settlement paperwork once you’ve come to an agreement.
Have an Attorney Settle a Debt For You
Keeping a cool head when you’re in the middle of a dispute over money is not easy. That said, remaining calm and being reasonable can help you during the process.
Whether your business is owed money or another entity is claiming you owe them money, having an attorney handle the settlement negotiations can not only lead to a positive outcome, it can reduce your stress.
If you join LegalShield, you can be on the phone with a provider attorney in as little as 4 hours. If appropriate, your provider attorney can write a letter or make a phone call on your behalf to seek to settle the situation for you at no additional cost.
How a Legalshield Small Business Plan Works for Debt Settlement
Your business pays a small monthly fee starting at $39.00 per month and gets legal advice, document review and attorney representation services you can use to settle debt collection cases faster.
Key Features of Our Small Business Legal Plans
LegalShield’s business plans can help you in the following areas.
Speak with your provider attorney on an unlimited number of business legal issues.
One hour of legal research on each matter is included at no additional charge.
Your provider attorney can make phone calls or write letters on your behalf.
Depending on the type of plan, a designated number of debt collection letters are included each month at no additional charge.
Have your provider attorney review documents and draft contracts.
Preparation of documents is provided under the preferred member discount.
Your provider attorney can defend you in covered civil lawsuits.
Depending on the type of plan, a designated number of pre-trial and trial hours are included at no additional charge.