Bankruptcy law will change dramatically in October, making it more difficult to get out from under crippling debt. At the same time, credit card companies are doubling their required minimum for debtors who can only eke out the least possible payment. It is not a coincidence both are happening at the same time, but it could catch many businesses carrying high debt, trying to make it through to that day when they get a big break, off guard.
(PRWEB) September 19, 2005 -- Bankruptcy law will change dramatically in October, making it more difficult to get out from under crippling debt.
At the same time, credit card companies are doubling their required minimum for debtors who can only eke out the least possible payment.
It is not a coincidence both are happening at the same time, but it could catch many businesses carrying high debt, trying to make it through to that day when they get a big break, off guard.
Unlike individual consumers, who are bombarded by TV ads offering credit counseling, business owners can feel helpless. Entrepreneurs may feel hopeless when suddenly confronted with higher monthly minimum payments, especially if the economy slows down in the aftermath of Hurricane Katrina.
Enter AmerAssist (www.AmerAssist.biz/?utm_id=200), which offers debt consolidation and restructuring services for small- and medium-sized businesses. They offer a free evaluation with no obligation. Often customers who pay slow, or soft sales and high interest debt, make meeting month-to-month cash flow requirements difficult. Business owners want to protect their assets but still satisfy creditors.
Most businesses arent trying to avoid paying what they owe, they are simply in a transition of some kind and just dont have the ability to meet all their current obligations. That could be because of a business being cyclical, or if they just lost a big customer," said Kenneth Monnett, CEO of AmerAssist during a recent interview with SkyRadio (http://www.AmerAssist.biz/media/KM_SkyInterview.wma). Monnett said AmerAssist works with companies who have as little as $10,000 in debt to those with $10 million in debt, and helps them negotiate payment plans with creditors. Clients decide who gets paid, how much they get paid, and when they get paid," Monnett said.
AmerAssist is the industry leader in commercial debt counseling, mediation, restructuring and debt management. Think of them as the D&B of credit counseling for business.
October 17, 2005, new federal rules take effect making it very difficult to file for the type of bankruptcy (Chapter 7) that wipes out all debt and creates a clean slate. Many businesses will be restricted to filing Chapter 11, and must use new federal allowances to calculate how much they can afford to reimburse creditors. The new law also requires credit card companies to state prominently on monthly statements how long it will take to pay off the balance on the card by making only the minimum payment. The legislation has prompted credit card companies to increase the minimum payment so customers will be faced with a warning about a 5-year payoff time, rather than a 20-year debt burden. Fortunately, AmerAssist offers a viable alternative that can prevent bankruptcy in most cases and restructure debts so that they can be liquidated within a debtor-companys current means.
For information or an interview, call Kenneth Monnett, CEO
AmerAssist, Inc. (614) 848-9800.
Click the following link to hear the full Sky Radio interview -
http://www.AmerAssist.biz/media/KM_SkyInterview.wma
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