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    1 Reply Latest reply on Aug 5, 2010 9:06 AM by FinanceOne

    I am liquidating my retail business and have debt.

    smallbizunder Newbie
      Most of it is credit card debt in the name of our LLC and some personal. Only the personal CC show up on my credit report. The assets will be gone within 30-60 days. Think I can successfully negotiate the credit card debt down? I am too broke to hire a professional for this so thanks for all input.
        • Re: I am liquidating my retail business and have debt.
          FinanceOne Wayfarer
          Almost all credit card companies are willing to negotiate nowadays. With personal bankruptcies surging, CC companies will always take something over nothing. If you are dissolving an LLC you may want to talk to a bankruptcy attorney. If the debt is in just the business name and there are no personal guarantees then you may be able to get out from under it without having to settle or destroy your personal credit.

          Another thing to consider, if you do settle for a lower amount then the CC company can file a 1099 for the forgiven amount. Debt forgiveness is considered taxable income. If you negotiate with the CC company ask them if they are going to file a 1099 for the amount forgiven.

          You can negotiate without a professional. CC companies do it with their card holders all the time. The lowest I have seen them settle for is typically 50 cents on the dollar. Each company has its own mitigation procedure so there is no one size fits all solutions.