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Business Debt/Credit card debt guarantor

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Expert: - 8/15/2009


Question
My client has been in business as a Texas corporation for 15 years. The corp. recently failed and there are no assets left. Client is the guarantor on a $12,000.00 defaulted credit card debt in the name of the corp. Bank of America Visa has proposed to settle the debt for $3,200.00. They have told him that this would take him off the hook also as the guarantor. He has a deadline of August 19, 2009 to make his decision. They also told him that there would not be any 1099 filed with the IRS for debt forgiveness in 2009 under his name and SSN. Is there a catch somewhere?

Thank you,

Eric Hoefnagel EA
Dallas, Texas

Answer
Dear Eric:
Thank you for your question. I don't know the specifics of terms of settlement for this account, but if you say the creditor is willing to do the above, get them to put it in writing and fax to your client before making payment. A 26% deal is a good one, but he will likely be taxed unless he can get them to ensure you otherwise. Still a nice savings if he has the funds to take advantage of the deal.

Respectfully,

Christine Janklow

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Christine Janklow

Expertise

As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.

Experience

My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.

Organizations
Provisors;Turnaround Management Association; Los Angeles area

Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."

Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising

Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.

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