Settlement Process | Business Advisory Center

• The settlement process is amicable. We are seeking a reduction in your debt, so it is important to avoid confrontation or arguments. As a third party, it is easier for BAC to be amicable than our client.

• BAC interviews you to gain a full understanding of your company’s financial situation.

• Based on the interview BAC develops a settlement proposal, which includes a review of your situation and a settlement offer to the creditor or creditor’s representative, which may be a collection agency, attorney or the creditor company itself.

• You review a draft of the proposal to insure that it is accurate and that you are in agreement with the offer being made.

• Settlement proposals are in writing for two reasons: there is a better opportunity to tell your story and the proposal is often reviewed by more than one person, so your situation is clearly presented to each person involved.

• The offer made is based on your ability to pay with terms you believe you can fulfill.

• BAC follows up the proposal by phone to secure approval or the creditor’s response. It is important to pursue acceptance quickly, as your situation may change.

• Once settlement offer is accepted, BAC gets the acceptance in writing.

• Once you have received the written settlement, you need to make the payment or the first in a series of payments, right away. You need to be prepared.

• If the settlement proposal is not accepted by the creditor, BAC reviews the creditor’s response with you and we discuss our response, which may consist of an improved offer. However, BAC advises not making offers you cannot fulfill.

• BAC handles each settlement individually. We do not consolidate your debts and try to settle with all creditors at once. Most of our clients are not in a position to settle with all creditors immediately, so there is a need to prioritize. The most urgent situations need to be handled first.

• BAC’s fee is paid once we have the written acceptance from the creditor or creditor’s representative.