script type="application/ld+json"> { "@context": "http://schema.org", "@type": "Product", "name": "Delancey Street", "aggregateRating": { "@type": "AggregateRating", "ratingValue": "5", "reviewCount": "10" } } When to Consider Debt Settlement for Your Business | Delancey Street

 

When to Consider Debt Settlement for Your Business

You’re drowning in debt: and the sharks are circling. Those creditors, they smell the blood in the water – and before long, they’re going to start taking bites out of your business. So, what can you do? Well, as a last ditch effort – you may want to look into debt settlement.

What is Debt Settlement?

Let’s get one thing straight: debt settlement is NOT a get-out-of-jail free card. No, it’s a process where you negotiate with creditors, to pay off a lump sum, LESS than the total you owe. The catch? The unpaid remainder gets reported as “forgiven,” so you’re taxed on it as income.

Why Consider It?

There are a few scenarios where debt settlement MAY make sense:

1. You’re way behind on payments
If those past-due notices are stacking up like a grisly pile of ghouls – debt settlement buys you time, to get current. That COULD save your credit rating from being further destroyed.

2. You’re facing bankruptcy
Want to avoid a Chapter 11 restructuring? Or even, dreaded Chapter 7 liquidation? Debt settlement may be a better alternative than the B-word.

3. Your debts are overwhelming
Sure, you’re bringing in revenue – but with those Brobdingnagian debts, you can barely scrape by. Trimming that fat through settlement? It’s like slimming down for summer.

Proceed with EXTREME Caution

But, a warning: debt settlement has consequences. BIG ones:

• It’ll pulverize your credit: Miss enough payments, and those perfect scores become ashambles. Wave goodbye to future loans, mortgages – maybe even job opportunities.

See also  Massachusetts Business Debt Settlement Lawyers

• Tax bomb on the way: Remember how we said the forgiven debt gets taxed? Yeah, Uncle Sam ain’t playin’ – be ready to pay up big-time.

• Creditors may still sue: Just because you settled with one creditor, doesn’t mean the others will oblige. In fact, it often emboldens them to take legal action for the remainder you owe.

Is It Worth the Risk?

So, should you consider debt settlement? That’s a complicated question – after all, this is your business’ livelihood we’re talking about. Unless your back’s truly against the wall, it’s a MAJOR gamble. One that could easily backfire.

But hey, in those dire straits? When the debts are too crushing, the walls closing in – settling COULD be your only way out. Just run the numbers carefully. Weigh ALL the potential consequences. And decide whether cleaning that slate, at such a steep cost, is truly worth it.

The choice is yours, but tread carefully: one false step, and a debt settlement could lead to even murkier depths. Is taking the plunge worth drowning for?

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
Leo
$500,000 MCA Restructured Over 3 Years
"Thanks for helping me in literally 24 hours"
Jason
$250,000 SBA Loan Offer in Compromise
"Great choice for business owners who need a trustworthy partner"
Mary
$350,000 MCA Restructured Over 2 Years

In The Media

Delancey Street CEO discusses ways to reward employees
Delancey Street CEO discusses the benefits of franchising on Forbes.
Delancey Street CEO discusses management on AMEX.
Beat Ctc Debt Collector

  Crush That CTC Debt Collector: A Merciless Gameplan They’re…

Is Pacific Debt Relief a reputable debt relief company?

  Is Pacific Debt Relief a Reputable Debt Relief Company?…

How is it possible for a bad credit to be fixed?

  Climbing Out of the Bad Credit Hole Sick of…

What is the effect of an AR factor on cash flow?

  The Brutal Truth: How AR Eats Into Your Cash…

What are the best credit card debt relief options?

  Crushing Credit Card Debt? Explore These Relief Pathways If…

Delancey Street simply gets it. You're talking to experts.
Steven Norris
Get Help Today

Ready To Get Started?

If you have questions, feel free to shoot us an email, or fill out our live chat.

Schedule Consultation