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Delancey Street Helps Business Owners Regain Control

Each year 10's of thousands of business owners struggle.

Join The Program

Fill out our contact form. We'll reach out and conduct a thorough assessment of your situation, and how we can help you. Our goal is to understand your situation, and determine if our program is the right for you, and the type of debt you have.

We Work With You

Once we determine our program is right for you, we start working on your behalf. We conduct a thorough evaluation of the type of debts you have, and put together an action plan on what a realistic, and beneficial outcome would look like for each debt.

We Get Results

The final step is the most important, we restructure your debt and put you in a better position than we found you. We work with you to adhere to the new debt restructuring program, and are with you every step of the way to make sure your business is thriving.

Program Results

$450K Merchant Cash Advance

Extra 24 Months

Transformed into a monthly payment, and extended by 2 years, with a 15% reduction in balance.
$110K Merchant Cash Advance

55% Reduction

Transformed into a monthly payment, and extended by 2 years, with a 55% reduction in balance.
$100k Business LOC

50% Redution

Our client had an LOC with a MCA hybrid lender, and saw a drastic reduction in balance.

How We Help

Business debt settlement through Delancey Street involves restructuring your corporate debt, in a manner that allows you to keep your doors open, and results in an increase in cashflow.

Get a affordable plan that works for your business cash flow as a part of the debt settlement process.

Get potential resolutions with Delancey Street in a timely and effective time frame once you enter our debt relief program.

You Have a Powerhouse team of financial and legal experts on your side, advising you on how to interact with predatory creditors.

5 Star Google Rating trusted by 100's of people who are struggling with business debt.

Business Debt Settlement vs Bankruptcy: Which is Better?

Business Debt Settlement vs Bankruptcy: Which is Better?

If your business is struggling with overwhelming debt, you may be wondering if debt settlement or declaring bankruptcy is the better option. Both can provide relief, but they work very differently and have pros and cons to consider.

How Debt Settlement Works

Debt settlement involves negotiating directly with your creditors or working with a debt settlement company to negotiate on your behalf. The goal is to convince creditors to agree to let you pay a lump sum that is less than the full amount owed in exchange for considering the debt settled.For example, if you owe $100,000 across multiple credit cards and loans, the debt settlement company may be able to negotiate that down to $60,000 or $70,000 as full payment. This can provide immediate financial relief and allow you to avoid bankruptcy.However, there is no guarantee your creditors will agree to settle debts. They may continue collection attempts or even sue you during the negotiation process, which can take many months. Debt settlement also won’t stop interest and late fees from accruing while you save up money to make settlement offers.So while the potential savings may be appealing, the process can be lengthy and stressful. Creditors have all the leverage in settlement talks, so it helps to have an experienced negotiator on your side.

How Bankruptcy Works

Declaring bankruptcy is a legal process that provides immediate protections, though your options will vary depending on whether you file Chapter 7 or Chapter 13 bankruptcy.

Chapter 7 Bankruptcy

This is known as “liquidation” bankruptcy. It involves handing over any non-exempt assets for liquidation by the bankruptcy court to pay off creditors. Remaining eligible debts are discharged, essentially erased.Chapter 7 has strict eligibility requirements based on income and assets, and not all business debts can be discharged. But it does provide fast debt relief, usually within a few months.

Chapter 13 Bankruptcy

Chapter 13 allows you to keep assets by agreeing to a 3-5 year repayment plan approved by the court. It has more flexible eligibility standards but is a longer process. You must stick to the repayment plan or risk having debts reinstated.Either type of bankruptcy stops collections and foreclosures. The court manages the process, providing enforceable protections. But bankruptcy also negatively impacts credit for years.

Key Factors to Consider

As you weigh debt settlement vs bankruptcy, keep these factors in mind:

Amount of debt – Bankruptcy may be the only viable option if debts reach an insurmountable level. Settlement becomes less likely as amounts owed increase.

Your goals – Bankruptcy can make financing difficult for years. If you hope to expand someday, settlement may better align with future plans.

Your income – Steady income makes debt relief more feasible than bankruptcy, which requires relinquishing assets.

Privacy – Bankruptcy is public record, while settlement talks are confidential. If discretion is important, settlement may be preferable.

Immediate relief – Bankruptcy provides fast protections from legal actions. Debt settlement provides no guarantees.Assessing your specific situation is crucial when deciding between these very different debt relief options.

Pros of Business Debt Settlement

While risky and laborious, business debt settlement does offer some advantages:

  • No upfront fees – Reputable companies charge only if settlements are secured
  • Preserve assets – You negotiate repayment rather than liquidate assets
  • Flexible options – Agreements can be tailored to your capabilities
  • Avoid bankruptcy – Settling debts lets you rebuild credit on your own timeline
  • Privacy – You handle talks confidentially versus a public court process

If you have the resolve, time, and income to chip away at debts, settlement may help resolve financial struggles without pursuing bankruptcy.

Cons of Business Debt Settlement

However, several drawbacks come with the territory:

  • Lengthy process – Could take many months to finalize settlements
  • No guarantees – Creditors can refuse to negotiate or sue you anyway
  • Risk of tax liability – Forgiven debt may count as taxable income
  • Continued collections – Late fees and interest still accrue as talks drag on
  • Credit damage – Missed payments hurt your score and loan eligibility
  • High failure rate – Many companies fail to deliver meaningful relief

The process is filled with hurdles and uncertainty. And creditors hold leverage, since bankruptcy always looms as an alternative if you can’t reach agreements.

Pros of Business Bankruptcy

While certainly no panacea, formal bankruptcy reorganization does offer some meaningful benefits:

  • Fast relief – Immediate halt to collections/lawsuits
  • Powerful protections – Court mandates creditor cooperation
  • Orderly process – Chapter 13 plans help stabilize finances
  • Total debt discharge – Chapter 7 erases eligible debts entirely
  • Experienced counsel – Bankruptcy attorneys assist with process

The court-supervised procedures, combined with enforceable mandates on creditors, make bankruptcy an empowering path to swiftly revamp finances and pay down debt under clear guidelines.

Cons of Business Bankruptcy

Some notable drawbacks also come with bankruptcy:

  • Public records – Bankruptcies become part of permanent credit history
  • Credit damage – Scores plummet and take years to rebound
  • Legal complexity – Complying with court requirements is demanding
  • Trust issues – Suppliers/partners may hesitate affiliating with your company
  • Expense – Attorney and filing fees quickly add up

While offering definitive protections, bankruptcy also comes with embarrassing public scrutiny, residual stigma, and steep legal expenses during an already challenging period.

Which Option is Right for My Business?

With the pros and cons of debt settlement vs bankruptcy more clear, assessing your priorities is pivotal in choosing how to address unmanageable debts.If preserving assets and autonomy are critical – and you have reliable income to chip away at debts – negotiations may be worth pursuing. The process enables you to slowly repay debts on terms you help set, without courts commandeering the company.But if debts feel genuinely unserviceable and creditors refuse to offer relief, surrendering control of debt repayment to the courts via bankruptcy may provide the best path forward. The protections afforded by formal reorganization can provide breathing room to eventually rehabilitate credit and resume more strategic business growth.

Neither option is perfect. But used judiciously in the appropriate circumstances, debt settlement or bankruptcy can each help struggling businesses eliminate debt and regain financial stability. Identifying the key pros and cons for your unique situation is vital in determining which approach makes the most sense.

If you remain unsure of how to proceed, consulting qualified legal and financial advisors can provide guidance on whether attempts at settlement or formal bankruptcy filings seem more prudent. They can assess your specific debt and income profile and help map out pros, cons and projections associated with either strategy.Armed with a full understanding of these very different debt relief mechanisms, you can make an informed decision on how to best resolve debts and put your business back on sturdy footing.

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
Leo
$500,000 MCA Restructured Over 3 Years
"Thanks for helping me in literally 24 hours"
Jason
$250,000 SBA Loan Offer in Compromise
"Great choice for business owners who need a trustworthy partner"
Mary
$350,000 MCA Restructured Over 2 Years

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