The Rule of 23
Knowing when you need debt restructuring
By Erwin Kaufman, President, Debt Consolidation Corp.

You’re not alone.
Each year, companies in every industry throughout the country are faced with billions of dollars in problematic corporate debt. Getting into debt is easy. Getting out of debt is a totally different story. But take heart. Sometimes even small changes can dramatically reduce your liabilities and turn a bad situation around.

Step one is recognizing the point at which you need debt restructuring. Consider the scale below with regard to your company’s current cash flow situation. Compare the percentages versus the amount of payable accounts currently in excess of seventy-five (75) days overdue.

• 0-10% - No need to consider debt restructuring. Make needed payment arrangements.
• 11-15% - Borderline. Take a good look at the financial situation. Good communication with creditors is warranted.
• 16-22% - A plan is needed. The ideal time to consider debt restructuring. Some accounts may have reached collection or litigation.
• 23-30% - Debt restructuring is urgent, as creditor demands are hot and heavy. Civil litigation and judgment executions/levies are looming.
• 30% and more – Situation critical . Negotiate all payable accounts to stay in business. Research all options including bankruptcy or perhaps closing your doors.

Risky business
Take heed. If 23% or more of your payables are over 75 days old, you’re taking extremely risky chances with the future of your company. You need a solid plan to satisfy your creditors – and you need it now. Otherwise, it’s just a matter of time before creditors lose their patience, start utilizing relentless collection agents, and attorneys to instigate litigation in an attempt to secure a judgment and seize corporate or personal assets. BOOM…..you’re out of business. Don’t let matters get to this point.

Don’t just take my word. Look at how many companies file for bankruptcy and/or close their doors every year because they had no way to get out of debt. The U.S. Courts website reports more than two million bankruptcy filings every year.

• What’s stopping you from turning your situation around now?
• What has to happen in order for you to face the reality of your dilemma?
• What consequences must you suffer before you finally take charge of your business once and for all?

It’s time to speak with a professional that can help. For a free, no-obligation consultation, call us now at 877-714-9296 or 954.340.5809. We can discuss the specific negotiation of any one debt or an entire restructuring of all business or personal financial obligations. Your questions will be answered quickly and completely with regard to our services, fees, references or referrals.


Contact us today for a free, no-obligation and confidential phone or e-mail consultation. We’ll let you know immediately how you can get started without delay.