Q: Is your program the same as debt consolidation?

Answer: Not at all. True North Financial understands that the merits of every client’s situation and every creditor account can be different. Our professional negotiation services are specific to each client and every individual account. Our experience allows us to customize a settlement program to each company’s profile and budgetary needs. While debt reduction is only one part of a successful corporate turnaround, the negotiation of one problem debt to a company’s entire debt load can often lead to keeping the doors open and avoiding bankruptcy.

Q: What are the costs and how do I pay you?

Answer: The costs are usually based on a percentage of your overall debt. As with every creditor settlement, our cost-effective fees are meant to work within your available budget. Everything is discussed and disclosed up front. Payment plans can be arranged in some situations.

Q: How long will it take to clear my debts?

Answer: Many factors determine the time frame including the cash flow you have available as well as the nature of the relationship with the vendor going forward. After we have reviewed your consultation request, we will discuss the amount of time needed to potentially complete a successful negotiation or an entire financial restructuring program to fit your company’s needs.

Q: Do your procedures work with all creditors?

Answer: While it is unlikely that any program will work 100% of the time and no firm can guarantee absolute results, we are proud of our extremely high success rate. In fact, to date, we already have resolved thousands of accounts in the tens of millions of dollars in commercial business and consumer debt.

Q: Does True North Financial keep my information confidential?

Answer: Absolutely. We are committed to maintaining total confidentiality. Your information will not be shared with anyone except those authorized to receive information on your behalf. Keep in mind that creditors will be advised that you have retained the services of debt consultants to assist you.

Q: Should I just go ahead and file bankruptcy?

Answer: You should only file bankruptcy as a last resort after seeking the advice of a licensed bankruptcy attorney which we can arrange through our affiliation with a law firm with a national reach. However, if your business is generating revenue, you may have the ability to resolve your debt with large discounts over an extended period of time. We recommend considering our program before filing for bankruptcy. Resolving your debt with an out of court resolution will most likely have a more positive impact on your credit ratings and business relationships in the long run than would bankruptcy.

Q: What is secured debt?

Answer: A secured debt is one in which your creditor has a recorded and or a protected secured interest in assets and items of real or personal property, such as your business, real estate, business vehicles, equipment, inventory, account receivables and so on. If you fall behind on payments on this type of debt, the secured creditor may then repossess the property in order to mitigate their damages. Also, you and other personal guarantors could remain liable for any deficiency balance that’s owed after the assets/property has been repossessed and sold. Certain exceptions may apply depending on the exact nature of the property, the security interest and applicable state laws.

Q: What is unsecured debt?

Answer: Unsecured debt usually rises out of a contract you enter into with a supplier, vendor or creditor which lets you obtain goods and services on credit in exchange for your company’s promise to pay back the debt. If you fall behind on these types of debts, the usual recourse of the creditor is civil legal action in an effort to obtain a judgment.

Q: May I choose which debts I want to resolve?

Answer: Yes. Our corporate debt workout program allows you to select which accounts you would like us to resolve. Since the courts are not involved in administering our programs, you have the ability to choose which specific accounts are to be negotiated for settlement. Additionally, based on your company’ situation, different creditor accounts may warrant different settlements.

Q: How do I know if my application will be accepted?

Answer: Our Consultants will help guide you through the review process. Our compliance and underwriting departments will review your application and contact you promptly to further discuss the best solution to your current situation. While most applications are accepted, our decision is based on the amount of debt, number of creditors, and the company’s overall financial situation along with cash flow availability.

Q: What happens if I don’t have enough assets to cover the settlement?

Answer: We utilize your company’s available cash flow and work within budgetary constraints to customize a re-payment plan that affords your company the ability to fully satisfy every settled account. In most situations, we can include deferred payments that allow negotiated settlements to be paid over extended periods of time. In many cases, creditors will make concessions on the total debt and accept extended payments on the remaining balance. Please note that some settlement options offered to creditors may be limited by your specific situation and cash flow availability. Regardless all settlements will be in writing with terms that will set you up for success