Have a Colorado Attorney Review MCA Relief Offers Before You Sign
When business debt becomes difficult to manage, offers from large national debt relief companies to lower your payments can be appealing. Debt relief companies often target struggling business owners considering bankruptcy, and focus their calls on the amount they say you could save. But you should be clear about what happens to the existing debt and any personal guarantees before you agree, particularly if they pressure you to sign before year-end.
At The Wink Law Firm, we won’t sell you false promises about business bankruptcy and business debt settlement that don’t actually reduce your debt, but we’ll also fight vigorously to show you all available options for financial relief. Our free attorney consultation gives you a chance to discuss a viable offer alongside your other obligations before committing to a telemarketer’s high-pressure deadline.
Know Who Will Handle Your Business Bankruptcy or Settlement
Be sure to get the relief provider’s full legal business name and the name of any attorney who would represent you. Verify a Colorado lawyer’s licensure through the Office of Attorney Regulation Counsel, and ask for a written explanation of the work included. A salesperson’s assurance that a company has attorneys does not establish adequate or quality representation for your business.
When comparing business bankruptcy lawyers near you, look at their experience with business debt and personal guarantees. Ask for proof that they have settled other cases like yours favorably. Michael Wink, owner of The Wink Law Firm, holds both a law degree and an MBA, and he led a private company before founding our firm. He represents debtors in litigation and oversees our debt settlement services.
Follow the Money Before Enrolling in a Program
Request the complete fee schedule and a written breakdown of the proposed payments. The agreement should explain the money paid to creditors and any amounts retained for fees or future settlement offers. If funds go into a separate account, confirm who owns and disperses that money and the conditions for withdrawing it or canceling the service.
A deposit into a settlement account does not in itself reduce an MCA balance or bind the MCA funder to accept an offer. At The Wink Law Firm, we discuss the real money available for settlement alongside your business’s other obligations, and work to materially reduce your financial burden.
Review Business Bankruptcy and Personal Guarantees Together
Your company’s bankruptcy filing ordinarily does not release your personal guarantee, which is why we review company and owner obligations separately at The Wink Law Firm. A business bankruptcy discussion should include the borrower named in each agreement and every guarantee you signed, along with any liens on company or personal property.
Your business bankruptcy lawyer at The Wink Law Firm will discuss eligible personal bankruptcy options available to you when you are liable for business debt. We also handle negotiations with business creditors, and any proposed settlement which addresses the owner’s or company’s liability. Relief for one does not automatically resolve the other.
Plan Year-End Timing Around Your Tax Situation
The date a creditor cancels debt affects the tax year in which cancellation income is reported. Canceled debt is usually taxable by the IRS, with some exceptions and exclusions, including qualifying bankruptcy or insolvency situations.
We’ll discuss those important cutoffs and dates with you, including IRS rules that permit an election to divide the filing year into two short tax years for certain individuals filing Chapter 7 or Chapter 11. That election has eligibility conditions and deadlines, so attorneys from The Wink Law Firm will be sure to explain the terms and what you should discuss with your tax professional before setting a filing date.
Your company’s fiscal year may also end on a date other than December 31. We’ll review those deadlines relevant to your debts and proposed legal work, since a sales representative’s high-pressure, year-end deadline to sign a debt relief agreement may not be in your best interest.
Contact The Wink Law Firm to discuss debt relief timing and tax concerns before year-end.
Keep Debt Collection and Court Deadlines in Mind
Tell us about any summons or scheduled court dates at the beginning of your consultation. Enrollment in a settlement program does not extend a lawsuit response deadline, and a promise to negotiate does not stop a creditor from pursuing collection.
Again, a sales representative from a national company may not remind you of this or be aware of local jurisdictional requirements. The Wink Law Firm knows Colorado bankruptcy law, courts, and trustees, along with Colorado-specific bankruptcy exemptions, and has been serving clients in the Denver area and beyond with considered, quality debt relief for nearly 20 years.
A business bankruptcy filing generally brings an automatic stay that restricts many collection actions against the debtor, subject to exceptions. Our attorneys will discuss those protections alongside any pending lawsuits and the proposed settlement.
Schedule Your Free Consultation Before You Commit
If you’ve been searching for business bankruptcy lawyers near you, our Denver firm offers a free consultation of up to 30 minutes with an attorney. Our online questionnaire gives us information about your finances beforehand, so we can maximize our conversation and set you on the path to true debt relief.
If you have fielded offers from national debt relief companies, bring those written proposals and your loan or MCA agreements to your consultation. A Denver business bankruptcy lawyer at The Wink Law Firm will discuss your case with clear, helpful options. Our clients receive their attorneys’ personal cell phone numbers and a commitment to respond promptly to questions throughout their representation.
Call (720) 523-0620 or complete our confidential questionnaire, and start arranging your new financial future with The Wink Law Firm.