Finding Relief from Business Debt in Winston-Salem
Running a small business is tough. You have to worry about paying employees, keeping customers happy, managing inventory, and a million other things. With all those plates spinning, it can be easy to lose track of finances and end up in business debt.If you’re a small business owner in Winston-Salem struggling with debt, you’re not alone. Lots of great business owners end up in debt for reasons both within and beyond their control. The good news is there are options for getting relief from that debt burden so you can get your business back on stable footing.In this article, we’ll walk through some of those options, including working with business debt settlement attorneys and merchant cash advance lawyers. We’ll also share tips on finding the right lawyer for your situation.
How Business Debt Settlement Attorneys Can Help
If you’ve racked up a lot of business debt – we’re talking over $10,000 owed to multiple creditors or lenders – then working with a business debt settlement attorney may be a good option.Here’s a quick overview of how the debt settlement process works:
- You stop making payments on the debts and instead put money aside in a separate account. This helps show creditors you’re serious about settling.
- The attorney negotiates with your creditors to try to get them to agree to settle for less than the full amount owed. Often they can get settlements for 30-50% less than what you owe.
- Once a settlement is reached, you use the money you’ve set aside to pay that reduced settlement amount as a lump sum. The creditor considers the debt paid off.
- While all this is happening, creditors will be contacting you demanding payment. This is where your attorney comes in handy – they handle all communications and negotiations so you can focus on business.
The pros? Debt settlement can wipe out tens or even hundreds of thousands in business debt for a fraction of what you owed. The biggest con is that it requires having enough money set aside to fund those settlements, which can be a challenge.If that sounds like something that might help your business get back on track, here are tips for finding the right debt settlement attorney in Winston-Salem:
Look for Experience with Business Debt Specifically
You want an attorney who understands the unique challenges business owners face with debt, not just a general consumer debt settlement lawyer. Find someone who specializes in small business debt relief.Ask about their specific experience negotiating settlements for business debts when you interview attorneys. How many business owners have they helped in situations like yours? What types of settlements were they able to negotiate?
Understand the Full Process & Costs Upfront
A good business debt relief attorney will explain the full debt settlement process and expected timeline in detail before you sign anything. They should also be upfront about their fees.Many charge a percentage of the total debt enrolled – often 15-25%. Others charge flat fees or hourly rates. Get all pricing and fee structures in writing so there are no surprises.
Look for Legal Experience
While being a licensed attorney isn’t an absolute must-have, it can be beneficial in case any creditors sue you over unpaid debts. Having a lawyer experienced in debt collection defense can help reduce risks.At minimum, make sure the firm employs attorneys you can consult if legal issues pop up in the process.
Working with Merchant Cash Advance Lawyers
If your business debt burden comes mainly from merchant cash advances rather than traditional loans, working with an attorney who specializes in those transactions can also provide relief.
How Merchant Cash Advances Work
With a merchant cash advance (MCA), a funding company provides you an upfront lump sum of capital in exchange for a percentage of your future credit card and/or debit card sales.You pay back the advance in daily or weekly installments until the full amount plus fees is repaid – often within 6-12 months. Rates and terms vary widely, but the equivalent APR is usually over 100%. Unlike a loan, MCAs don’t have fixed monthly payments. The amount due fluctuates based on sales volume. That variability can make them difficult to budget for.And while MCAs are not technically loans, the contracts governing them can still be considered predatory. That’s where MCA lawyers come in.
MCA Settlement & Legal Options
If you feel your MCA contract terms are unfair or deceptive, an attorney experienced with these instruments can help in a few ways, such as:
Negotiating Settlements – Like debt settlement attorneys, MCA lawyers may be able to negotiate discounted payoff amounts with the funders to eliminate some of what you owe.
Reviewing & Disputing Contract Terms – They can also review your merchant cash advance agreement for prohibited terms or misrepresentations and dispute those provisions to try to get the contract voided or changed.
Defending Against Lawsuits – MCA funders sometimes sue business owners over non-payment. A knowledgeable attorney can put together defenses to these lawsuits to either get them dismissed or reach a settlement.
Recovering Funds – In some cases, attorneys have helped small business owners recover a portion of funds already paid back to predatory MCA funders. This provides cash flow relief.When interviewing MCA lawyers, ask about their experience with specific tactics like contract disputes and defenses against lawsuits. Understanding all your options is key.
Questions to Ask When Choosing Debt Relief Lawyers in Winston-Salem
Finding the right attorney – whether for business debt settlement or MCA disputes – is critical. As you vet lawyers, here are some good questions to get the conversation started:
- How much experience do you have specifically with business debt relief and settlements? How many cases similar to mine have you handled?
- What is your success rate? What types of settlement discounts or other outcomes have you achieved for business clients?
- What is your pricing structure? What fees will I pay and when? Are there any upfront costs or retainers required?
- What is the process and timeline I can expect if I engage your services? Walk me through what happens from start to finish.
- Who handles communications and negotiations with creditors/funders – attorneys or non-attorney staff? How responsive can I expect you to be?
- Do you foresee any unique challenges in my specific situation? How would you address those?
- Can you share 1-2 examples of business debt settlement/MCA cases you’ve handled that are similar to my circumstances?
The more details an attorney can provide around past experience, process, pricing, timeframes, and results, the better sense you’ll have of what to expect working with them.
Delancey Street – Business Debt Relief in Winston Salem
If you’re looking for help negotiating settlements or disputes for Winston-Salem business debt, Delancey Street is here to help.While we’re not a law firm ourselves, we maintain relationships with experienced debt relief attorneys and can connect you with legal help tailored to your situation for no upfront costs.We take care of all the legwork of finding vetted lawyers, explaining your options, and monitoring your case progress so you can focus on running your business.
