From the President of a Gift Catalog Company in MD

I would like to extend my appreciation to American Finasco for the outstanding results of the service that was provided to my company. I discovered American Finasco through their website during my search for an organization that assisted commercial businesses experiencing financial distress. We assigned 127 creditor claims that totaled $315,643.00.


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Bankruptcy Alternatives for Businesses Facing Financial Difficulty - Making All the Difference in Future Success

Following an eight-year campaign lead by banks, retailers and credit card companies, the United States Congress changed the bankruptcy law in a landmark decision, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), requiring for the first time an income-based test for measuring a debtor's ability to repay obligations. Those deemed to have insufficient assets or income can still file a Chapter 7 bankruptcy, but those with an income above their state's median and the ability to pay at least $6,000 over five years are forced into Chapter 13, where a debt repayment plan is ordered.

This new bankruptcy law makes it much harder for small business owners to file for bankruptcy. The paperwork hurdles for debtors to qualify for Chapter 7 have become insurmountable, and the detail requirements for mandatory public sessions are obtrusive - delving into mortgages, household and personal bills, car payments, life insurance policies, child support or other financial obligations.

As a result of these changes, bankruptcy fillings have decreased over the past 12 months, according to the American Bankruptcy Institute, an organization comprised of bankruptcy judges, lawyers and other legal experts.

Fortunately these changes have prompted small business owners to carefully review other options that are not only more "business-friendly" but leave the company free from dark financial clouds that linger for years following a bankruptcy. Debt-reduction and restructuring firms offer just such an alternative. In fact, in many cases following initial consultation and analysis with a team of debt-restructuring professionals small business owners recognize that bankruptcy was not necessary at all - and that an effective debt-restructuring plan not only creates debt relief but also enables growth.

An experienced team of financial consultants, business managers and attorneys tied into an expansive nationwide network are able to more clearly identify strategies for regaining a strong financial footing and negotiate acceptable agreements with creditors. This type of plan not only avoids the lengthy bankruptcy process but also the negativity associated with it.

Debt management programs provide ongoing support, while allowing businesses the freedom to plan for the future. Experienced debt consolidation and restructuring analysts are able to step back and assess a struggling business in ways those involved in the daily management of the business are unable to effectively do. Personalized assistance helps establish a realistic budget, negotiate new payment terms with creditors, and eventually settle all claims - in an effort to help business owners constructively move on with their life.and re-establish a solid business plan.

Bankruptcy comes with many disadvantages and stigmas that are difficult to overcome. Before considering filing for bankruptcy, business owners should give serious consideration to the alternatives.

Debt-consolidation and restructuring professionals can help business owners write a new Chapter.

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Stephen Wright and Guest Mitch Vicknair, American Finasco - Price of Business