Corporate Bankruptcy Rises 44% as Business Debt Settlement Alliance Helps Businesses Avoid Bankruptcy: Chapter 7 and Chapter 11

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) February 10, 2010 -- San Diego, California - - January 3, 2010 -- At a time of skyrocketing business failures and corporate bankruptcy filings, a unique bankruptcy alternative is helping some companies turn the tide. The service is the flagship of a business debt settlement alliance that's aiding business owners to survive the volatile economy.

Presently, many small businesses across America are unable to withstand the nation's financial crisis. Banks aren't issuing credit. Businesses are unable to obtain capital to operate and attract new customers. And cautious consumers are penny-pinching. The residual effect is causing business profits to plunge.

The rigors of the current economy are also forcing employers to lay off staff and terminate key employment benefits, such as medical insurance. Plus, business debt is rapidly escalating.

And business bankruptcies are on the rise.
According to credit analyst, Equifax Inc., as of September 30, 2009 national business bankruptcy filings were up 44%. California was worst hit, with small-business bankruptcies up 81% for the 12 months compared with the previous year.

Roughly 19,000 small businesses in the state filed for bankruptcy. Los Angeles, Riverside, San Bernardino, and Sacramento had the highest rate of small-business bankruptcy filings.

Responding to the crisis, the Obama administration pressured bank executives to open up credit lines to small businesses. Stimulus money was also proposed.

Despite the federal push, emergency financial relief is more feasible from a visit to a bankruptcy lawyer. However, Leiman & Associates is referring their tax clients to a Debt Free League financial adviser.

Businesses that are calling the toll-free hot line of the debt settlement company's National Debt Relief Stimulus Plan are finding immediate help that's more desirable to Chapter 7 or Chapter 11 bankruptcy.

They are learning they can avoid bankruptcy and increase cash flow by doing discounted out-of-court settlements of unpaid business debts with creditors.
Neil Leiman, President of Leiman & Associates is a prime

example.

Leiman, a Social Economics professor, never imagined that, ten years ago, he'd be battling to save his company. His bustling tax and accounting firm, which incorporates business start-ups, had endured some heavy losses. Many of his clients were going out of business.

When company receivables hit rock bottom, he had to downsize and lay off staff to stay afloat. Unable to get a home equity loan, he kept dipping into retirement savings to pay his mortgage and late credit card bills.
Fortunately, he escaped bankruptcy after a debt settlement program came to his rescue.

Leiman attests, "I'm a firm believer in debt settlement. It helped me pay off $68,000 in personal and business debt. As a result, I saved $32,000 and within sixty days of liquidating my last creditor account, I managed to refinance my mortgage loan at a lower rate."

As the economy toughens, more corporations are using debt settlement as a smarter solution to overcome their financial challenges.

While consumer credit counseling only works on consumer debt, debt settlement negotiates commercial business debt as well as medical debt. Many also favor it over Chapter 11, which controls how much business debt must be repaid and generally requires business assets to be liquidated. In contrast, the procedure adapts to the debtor's financial situation. Business assets are also seldom at risk.

Leiman adds, "Because debt settlement allows my clients to reorganize repayment of their business debts, it gives them adequate liquidity to function, allowing them to avoid bankruptcy, or spend thousands of dollars on attorney fees and endless months in court." He also praises how practical it was for him in fending off lawsuits and liens.

However, he cautions to look for an experienced debt settlement company.

Aside from having the lowest fees, he endorses Debt Free League because they have an in-house, top-notch debt negotiation department. Many others outsource this vital service.

The company has a track record settling millions of dollars with original creditors, collection agencies, and collection attorneys. Numerous recent debt settlements that they have negotiated with creditors can be viewed online at DebtFreeLeague.com or their Spanish affiliate, Libre de Deudas (sealibrededeudas.com).

For companies also interested in referring business clients, Vice President, Eric Santacruz advises, "You should consider referring to us businesses that are suffering from low sales, low capital, slow or uncollectible receivables, or are being disrupted by debt collectors threatening to file lawsuits."

Santacruz also points to a variety of unsecured business debts that the program specializes in. A business debtor can enroll corporate credit cards, business loans, equipment lease defaults, lease disputes, past-due accounts, creditor judgments, and vendor contracts.
Companies that are interested in the Debt Free League Affiliate Program, or people who owe $2,500 or more in personal, medical, or business debt, are encouraged to call (800) 213-9968.

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