Liabilities Exceeded Assets
Client’s liabilities exceeded assets.
The client was insolvent.
Smith Schafer Approach
Informal troubled debt restructuring. We reviewed the client’s list of vendors and selected the largest 25 accounts. We contacted vendors to explain clients’ situation and request acceptance of a discounted amount as
Fractional payments ranged from 20-50 percent of the original balance. Many of these vendors continued to sell to this company, although some required COD terms. The client reduced accounts payable by about $45,000, which allowed the company to become solvent and avoid bankruptcy.
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“Smith Schafer has provided second to none service and value to my business and personal accounts for over 30 years. Their expertise and knowledge are unmatched by any other accounting firm I have encountered over all these years."
“The relationship we have built over the years with the staff at Smith Schafer is one that can never be replaced. They are quick with helping us figure anything out, always willing to pick up the phone and walk us through any problem we are having. Also they are just all so friendly and kind!"
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- Sound and Media Solutions, Inc.
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