Do you still have questions about
Commercial Debt Counseling Corporation’s Program?

The following page contain the answers to our ten most frequently asked questions.

Q.	1. How can restructuring, through a commercial Debt Management Program, solve my immediate financial difficulties?
A.	Debt Management Program restructuring, by CDCC, will eliminate the burden of dealing with creditors, collection agencies and attorneys. Your company will receive a fresh start by reducing your delinquent debt by as much as 70 percent without the costs or negative impact associated with litigation or bankruptcy. Instead, the delinquent business debts that you submit will be consolidated into one simple monthly installment deposit that you can afford. This will free up vital cash flow as well as your time for developing the business.back to top
Q.	2. When is the best time to restructure my business related debt?
A.	When your cash flow is inadequate to cover your monthly payables. This can happen if your business is cyclical and is in a slow period, or if days sales outstanding increase because your customers are paying your own accounts receivable late. Whether your difficulties were caused by the loss of a large customer or an industry slow down, CDCC provides a better alternative without additional financing, or the need for any personal guarantees. Even if you are planning to sell your business, a Debt Management Program that restructures your debt will add significant value (from the balance sheet enhancements associated with reduced debt, to stronger free cash flow projections as a result of deferred installments). back to top
Q.	3. Why can’t I just negotiate with my creditors on my own?
A.	A commercial Debt Management Program will get you out of debt with submitted creditors faster and more efficiently than you could generally manage on your own. Most creditors prefer to deal with a fully bonded intermediary who will intercede to assure the business has a realistic plan to restore it’s financial health, that is fair and equitable to all cooperating creditors. Furthermore, CDCC can stop late charges, and get over limit fees and interest charges waived. And since a CDCC restructuring program yields more to creditors than litigation or bankruptcy, self interest compels creditors to agree to a professionally managed plan that is realistic. back to top
Q.	4. How can CDCC satisfy my creditors with such small monthly installment deposits?
A.	Creditors are provided with flexible options that range from an immediate reduced settlement payment to a deferred installment payment in full. The final settlement and payment priority relate entirely to the time extension a creditor is willing to give you. Most important to you is that the mediation of a realistic restructuring solution, to satisfy your creditors, is always based on options within a budget that your business can currently afford. This is achieved through the disclosure process during mediation, that again compels cooperation. back to top
Q.	5. What if I personally guaranteed some of my business related debt?
A.	Most new and small businesses have no choice but to sign personal guarantees for loans, leases, inventory and credit. It is common for owners to be bound to these debts and even more if personal credit cards were used to advance business related expenses. If you have personally guaranteed business debts, and the business is having difficulty, is involved in collection efforts from a third party, is closing, or is closed, your personal obligation remains even after the business is gone. In most situations, you will be liable for the original debt or judgment, plus interest, attorney fees, costs and expenses. By contacting CDCC, at the first sign of financial difficulties, a full compliment of options available to reduce or restructure your debts will be preserved on your behalf. back to top
Q.	6. What if a creditor is about to sue me, has already involved a collection agency or has already obtained a judgment, and refuses to settle?
A.	The best opportunity to negotiate a satisfactory resolution, with an angry creditor, is prior to the filing of suit or placement with an agency. Therefore, CDCC should be brought in to help take charge as soon as a business experiences financial difficulties, whenever possible, to prevent escalating costs. However, we can negotiate a reduction in most collection agency placements, court judgments, and arbitration awards rendered against you or your company, and restructure a lump-sum obligation into deferred installments. The DMP mediation and disclosure process compel the acceptance of one of our settlement options, as the only logical alternative for a creditor to get paid. And, this puts you back on the road to financial health. back to top
Q.	7. How will a program that restructures my debt affect my credit?
A.	Unless you currently have perfect credit, making reduced payments on a debt that has been decreased or deferred through a Debt Management Program, will more than likely have a positive effect on your credit report. Since debt restructuring increases your free cash flow while reducing total debt, your improved capacity to repay debt will enhance your ability to obtain credit. In some cases we can even get creditors to re-age your account, meaning they will report you current again. Then by facilitating consistent, monthly payments, the DMP will help you re-establish a favorable credit history. back to top
Q.	8. Can CDCC also help resolve old Debt?
A.	Old debts have a derogatory impact on your credit report and many even prohibit you from obtaining critical vendor credit lines or new financing. If you or your company have old business related debts, call us for help today. We can reduce and/or restructure them, and clearing them off your books will give you a fresh start. back to top
Q.	9. How can I maintain vital supply lines with priority creditors?
A.	Since you select the debts to be submitted for restructuring, you have the option to exclude any creditor. Furthermore, you can always add them to the program at a later date. However, CDCC understands the importance of vital supply lines with key vendors that are critical to your business. Simply designate a “critical supplier” status to these creditors and we will negotiate to maintain an ongoing relationship as part of the restructuring mediation. back to top