During the course of some settlement negotiations, a creditor may request copies of a recent Balance Sheet and Profit / Loss Statement in order to justify allowing a discount on a claim. Copies of recent tax returns may also be requested.
Providing this requested information is entirely optional. However, if the information is readily available and supports a financial need for a discount, I usually recommend my client provide the requested documents. I can review the information prior to sending to the creditor to ensure there is no data included that might adversely affect settlement negotiations. If desired, I can also request a non-disclosure agreement from the creditor.
If, for any reason, this information is not readily available or if the data does not support a need for a discount on the claim, I can usually steer settlement negotiations away from this topic and move forward for satisfactory settlement terms.
Scott F. Soape
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