Providing Financials to Creditors

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

Boost Your Credit Score

Many times when a business owner is experiencing cash flow difficulties with their business, it flows over to their personal financial situation.  Although I limit my practice to only commercial clients, I always strive to assist business owners with their complete financial recovery.


A recent online article from Kiplinger provides 7 ways to boost your credit score.  Please click the below link to view the full article.


http://www.kiplinger.com/article/credit/T017-C000-S015-debt-payoffs-that-boost-your-credit-score-the-most.html#


Scott F. Soape