Last week, I was able to assist a struggling small business and the owner with a sizable problem debt. The company had been sued in Colorado by an equipment leasing firm for $197,000 and the owner was on the hook personally as a guarantor.
My initial negotiations resulted in a settlement offer from the leasing company for $20,000. This was acceptable with my client but I pressed for a little more and finalized negotiations with a $15,000 settlement payable in 30 monthly installments of $500 each at 0% interest.
The result was a savings to my client of $182,000 on the principal claim with a manageable payment plan allowing him to continue business and avoid potential bankruptcy. Counting waived attorney's fees, court costs and interest on the debt, actual saving was more than $185,000.
