Q. What is Debt Restructuring?
A: Debt restructuring is the process of negotiating new payment terms with existing creditors. American Corporate Turnaround can help satisfy creditors with payments you can truly afford, ultimately avoiding lawsuits and bankruptcy. Restructuring may include reducing the amount owed, stretching out the time period for making payments to creditors or both.
Q: What does this process do to my company’s credit?
A: If are considering debt negotiation your credit worthiness is already in trouble or shows serious delinquency. This is not a process to save your credit but rather save your business. Once your debt is gone, you can focus on rebuilding your credit.
Q: Can I negotiate with my creditors on my own?
A: Debt restructuring programs remove the emotion of you dealing with the creditor. Stress and pressure can impair judgment on decisions. Since we do not have this impairment, we utilize only one method, what is best for you. Furthermore, it is quicker and more efficient than you attempting to do this on your own. Since we create the plan for repayment, creditors feel more comfortable dealing with us knowing we are trying to restore your financial stability.
Q: Will this damage my relationship with my creditors?
A: By working with us, you are showing your creditors that you are putting forth an effort to resolve your debt with them. If you previously had credit with the supplier or vendor they most likely will continue to do business with you on a COD basis. Keep in mind, when we negotiate with your creditor, we are always trying to preserve the relationship you have with them.
Q: Why are creditors willing to settle?
A: There are two main reasons a creditor may be willing to settle and they go hand-in-hand. First, in most cases it is less expensive for a creditor to settle than to pursue other means. Second, when you engage American Corporate Turnaround as a third party, creditors realize they have no other choice but to accept less to get paid.
Q: Do I have to give you all of my debt?
A: No. The debt you assign to us should only be debt that is delinquent.
Q: Do you stop the harassing phone calls from creditors?
A: Once you engage American Corporate Turnaround, we will contact each creditor and advise them of our involvemen
