"More Than Just Debt Relief"

Sometimes it takes more than just settling your debts. Sometimes we have to help our clients get back on the right track and adopt the positive attitude and frame of mind necessary for survival and success.

Two individuals partnered to purchase a retail furniture store where they had been employed. They took all the steps they thought would protect their interests, including hiring an attorney to negotiate and review all the contracts and agreements.

Several months into operation they discovered the previous owner had assumed ownership of merchandise not paid for and equipment the partners thought they bought was in fact leased. As they began to research the contract they signed they found fine print and clauses that absolved the seller and left them liable.

As these things came to light the partners paid the past due invoices left behind by the seller and used up their working capital and income leaving them broke with a stack of debts they had incurred. At this point they visited another attorney who advised them flat out to file bankruptcy and because their agreement with the seller had a balance due and they had personally guaranteed the debt, both partners would have to file bankruptcy as well.

They found Financial Technologies on the internet and called. What could we do for them?

We are not attorneys and do not presume to provide legal advice but we do have more than 20 years dealing with debt management situations. As part of our service, we work to develop strategic planning for our clients as well as management and marketing suggestions to help our clients get back in the game.

In this case, we contacted the creditors and presented the situation. We offered suggestions to our client as to a course of actions they could take against their original attorney and the seller. We advised them on some marketing programs and aided them in discovering new suppliers and suggested payment programs and consignment options that could work for both parties and we were available to work through each kink in the plan.

Only after our clients could see a glimmer of success and a direction for the future did we begin to work with the creditors to settle their claims.

"You Can Survive, Recover, and Succeed!"

How to end a business without bankruptcy, workout settlements with your creditors and have something left to start over.

Our client had debts in excess of $ 325,000.00 and a negative cash flow. When Financial Technologies got involved we dealt directly with the creditors presenting the facts, including the demands by the secured creditors and the IRS. It was not a pretty picture. We kept in touch with the creditors but we had no funds for settlements.

We found that the company counted among their assets a good client list with a good history of customer satisfaction. After reviewing the situation we suggested our client had something to sell, with the right buyer. Our client knew his industry and saw a few good prospects. If only he could hold things together until a deal could be made.

Our client cut overhead to the bone and worked with temp help, batching the orders so the plant ran only when they had a full day of production demand. At this point we were able to help address the secured creditors and advise on the IRS. We are not attorneys nor enrolled agents for IRS negotiations, however, with our years of experience we can provide insights for strategic planning. It was not the best of situations but it became workable.

When a buyer was found, we were able to work with the creditors to settle the claims and predicate the payments on funds from an outside source. Of course things took longer than anyone had thought, but our settlements held up and our client was able to return a portion of what was owed each.

The company did not survive as an entity, but the customers and equipment went to work for the new owners and our client was able to move on and become the owner of another very successful business.

RECENT CLIENT SETTLEMENTS

Vendor Workout Recap For Recent Clients

In each case the settlement and the savings were based on the individual circumstances we were able to present to the creditor on behalf of our client. We base our offers on data we gather from our client regarding their financial condition, history, and prospects for the future. Most settlements are completed in four payments or less. Not all our settlements enjoy the percentage of savings represented herein, but these examples do represent a fair expectation for a seriously financially troubled business.