I negotiated a settlement last month for a client with a company that had been heavily impacted by the COVID pandemic. Although his business was beginning to turn around, revenues were still very low and he was unable to commit to more than $100 per month on any settlement.
The creditor was pressing for much higher payments to retire their claim as quickly as possible but this would have resulted in a quick default based on our revenue projections.
Using some creative thinking, I was able to convince the creditor and their attorney to accept graduated payments starting at $100 per month with payments increasing by $50 every 6 months resulting in the final few payments eventually reaching $350 each. This arrangement allowed my client time to rebuild his business while providing the creditor with payments that would increase over time and eventually retire the debt.
