How to Avoid Illegal Debt Settlement Strategies
Debt settlement is a legal way to reduce some of your debt. Some debt settlement companies will set up elaborate payment plans, similar to child support or alimony, and may even be able to settle your debts for less than half of the amount owed. This is legitimate, but traditional Debt Solutions will not advise you on debt settlement primarily because of two major problems:
1)It is a very complicated and highly specialized field.
2)The Government periodically changes the rules
The rules are currently Point 13 of the TDR. The key to debt settlement is not that you need trained debt negotiators but a legitimate explainer who knows their field well and can back you up on every step of the settlement process. There are two significant problems with debt settlement at present or in the future.
1)People aren’t going through debt settlement because they can qualify for it.
2)The schemes’ methods are not yet refined to make them effective, and even if they were, there’s not enough competition for small business debt help.
Our sensible advice aims to promote more education and suitable debt settlement and negotiation.
What can you get in the consignment business? ledgers operating on the swipe card
People won’t pay you money in advance & you’ll get paid monthly by the creditors.
The consignment business is a serious business, and you may well become flooded with people wanting your business.
The first step is the client liaison phase. It would help if you got a working understanding of how demanding the client is. Establish a relationship with your client – tell them you will give them an offer at the end of the month. You would then need to prove what a good deal you can get them. As part of this, you may need to produce some documentation. Don’t try too hard or too hard. The answers you give them are:
o when are you expected to forward the money?
o when were you due to pay the debtor?
o are you prepared to pay an upfront fee?
o do you have all the paperwork you need from the debtor?
o do you have evidence of the debt?
The next phase of the operation would be to establish trust. You want them to trust you. You go out and do your best to explain your offer, and try not to come off as the “prince in the butt” or “get rich quick” guy. Get your documentation together and your message right, and you’re nearly there. This is a very sensitive area. Make sure you make the client feel comfortable in what you are doing and that they can always walk away if they don’t like it.
The last part of the system is documentation. It would help if you were collecting 3-5 different things from your clients every month. Some things you’ll need are:
3) permission to operate a business bank account
4) proof they are licensed and debt proof
Again, each documentation stage is separately worth going over and involves very specific rules & regulations.
Some of the things you’ll need during this phase should include:
2) letters of reference
3) correspondence with the clients
4) sample agreements
You will, of course, need to hire your own representation if you have lots of debt with the debtor.
That’s everything you need and it will ensure you’ll almost certainly be able to negotiate a large portion of the debt that is owed in exchange for just a portion if the settlement amount is large enough, or you want to try to buy them out of a settlement extended over time.