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FAQ's - Things to know

Satisfy seemingly unaffordable claims. Restructure leases and finance agreements to get a fresh start. Here are some frequently asked questions regarding our debt restructuring services.

What exactly can you do for a business?
We can negotiate long and short-term payback agreements while reducing balances within a pre-established budget. Minimally, late fees, interest charges and collection fees, if previously added to outstanding balances, are eliminated. Reductions in principal balances are attainable as well. We can help you with your trade creditors, corporate credit cards and most lease agreements such as for office, industrial and medical equipment. Speak with a consultant today regarding credit products such as factoring companies and banks, if this is your specific need.

Can a business owner handle it alone?
Creditors will appreciate the communication and the effort, but at the end of the day, even fully-equipped firemen would not run into a burning building. Business owners are at a disadvantage as responsible but vulnerable individuals. Creditors and their agencies will take advantage of sincerity and good will lobbying only for the resolution of their individual claims- not the resolution of the debt pool as a whole. Ultimately, creditors will place their claims with seasoned collectors leaving the business owner at an obvious disadvantage without representation of his own.

Will creditors pursue the company or its owner?
Creditors and their agents will seek recovery from any and all responsible parties. This factor is accounted for in our account strategy which is designed to minimize personal exposure and any related threats. Once claims are settled and paid, the debt and any liability associated with it is satisfied unconditionally. Creditors cannot pursue remaining balances at a later date. Every agreement is fully documented and remains available as a permanent record.

How is a credit rating affected?
There is no direct credit reporting done by The Reorganization Management Group. The fact is that a business in our program will not be reported to any of the major credit bureaus. In the short-term, credit ratings will reflect that accounts are not current as creditors individually report delinquencies, which negatively impacts credit ratings. As debts are settled and paid, the amount of debt will decrease. This will positively impact credit ratings.

Collectors are calling continuously. Can you stop these irritating calls?
Perhaps the greatest benefit of our service is personal comfort and peace of mind. All collection related inquiries can now be referred or simply directed to us. Our staff will effectively address creditors’ calls and collection attempts. We will respond to creditors so business owners can spend your time where it is most needed – making business grows.

Why shouldn’t bankruptcy just be filed?
A bankruptcy filing provides consumers and businesses protection offered nowhere else. However, bankruptcy is not right in every case and should only be considered as a LAST RESORT, pursued only after all other debt relief options have been fully explored. Statistics on filing bankruptcy suggest it is generally ineffective, and ultimately does not serve the intended purpose of debt relief with operating freedom. To fully understand the ramifications of filing for bankruptcy, consult a competent bankruptcy attorney.

  • Proud affiliate of: Turnaround Management Association