Bankruptcy law will change dramatically in October, making it more difficult to get out from under crippling debt.

At the same time, credit card companies are doubling their required minimum for debtors who can only eke out the least possible payment.

It is not a coincidence both are happening at the same time, but it could catch many businesses carrying high debt, trying to make it through to that day when they get a big break, off guard.

Unlike individual consumers, who are bombarded by TV ads offering credit counseling, business owners can feel helpless. Entrepreneurs may feel hopeless when suddenly confronted with higher monthly minimum payments, especially if the economy slows down in the aftermath of Hurricane Katrina.

Enter AmerAssist, which offers debt consolidation and restructuring services for small and medium-sized businesses. They offer a free evaluation with no obligation. Often customers who pay slow, or soft sales and high interest debt, make meeting month-to-month cash flow requirements difficult.

"Most businesses aren't trying to avoid paying what they owe, they are simply in a transition of some kind and just don't have the ability to meet all their current obligations. That could be because of a business being cyclical, or if they just lost a big customer," said Kenneth Monnett, CEO of AmerAssist during a recent interview with SkyNews. Monnett said AmerAssist works with companies who have as little as $10,000 in debt to those with $10 million in debt, and helps them negotiate payment plans with creditors. "Clients decide who gets paid, how much they get paid, and when they get paid," Monnett said.

AmerAssist is the industry leader in commercial debt counseling, mediation, restructuring and debt management. Think of them as the D&B of credit counseling for business.

October 17, 2005, new federal rules take effect making it very difficult to file for the type of bankruptcy (Chapter 7) that wipes out all debt and creates a clean slate. Many businesses will be restricted to filing Chapter 11, and must use new federal allowances to calculate how much they can afford to reimburse creditors. The new law also requires credit card companies to state prominently on monthly statements how long it will take to pay off the balance on the card by making only the minimum payment. The legislation has prompted credit card companies to increase the minimum payment so customers will be faced with a warning about a 5-year payoff time, rather than a 20-year debt burden. Fortunately, AmerAssist offers a viable alternative that can prevent bankruptcy in most cases and restructure debts so that they can be liquidated within a debtor-company's current means.

Situation: A medium sized Midwest printing company suffered severe cash flow problems after losing most of the business from its largest customer. A number of key vendors cut off critical supplies while virtually all payables became seriously delinquent.

Solution: A CDCC workout manager interceded, at their accountant's suggestion, and established a Debt Management Program (DMP) with one simple monthly installment (about 4% of the aggregate indebtedness in this case). The program resolved the outstanding business debt remaining after the mediation process reduced or restructured each obligation. This freed up vital cash flow while new business was developed. The time relief allowed them to become debt free in approximately 24 months and they have re-established a favorable credit history.

Situation: Owners of a small construction company with a cyclical market niche decided to sell the company to get out from under growing business debt that had become unmanageable.

Solution: A business broker recommended CDCC to restructure their debt. These services ultimately added significant value. The company balance sheet was enhanced as significant business debt reductions were negotiated and free cash flow projections became substantially stronger, as a result of deferred installments. The company was then able to merge with a larger strategic buyer. The owners, that cashed out along with their senior management team, now run the same market niche for the buyer in a larger division that has leveraged synergies into a stronger competitive edge with the merged resources.

Situation: A fast growing West Coast Internet company became a victim of a dramatic industry slow-down when the Internet bubble burst. Their attorney contacted CDCC for help.

Solution: After a realistic business debt management program was presented by CDCC to each of their creditors, based upon what they could afford, the collection calls stopped. The creditors were persuaded that a professional intermediary was the most productive solution available. In most cases business relationships with vendors were maintained even though some continued on a COD basis until the workout program was completed. Chapter 11 bankruptcy was prevented and the business is growing once again with a new strategic direction. Critical factors in the turn around were time extensions, debt reductions and cash flow improvements that were direct by-products of the restructuring process.

Situation: A large Wholesale Distributor experienced a critical increase in days-sales-outstanding, in their own receivables portfolio. The family members that owned the company could not agree on a needed working capital contribution and did not wish to sign personally on a loan to bridge the problem. Their own payables got so far behind that many of their creditors had already turned them over to collection agencies and attorneys.

Solution: When CDCC was finally brought in at the recommendation of their new CEO to create a Debt Management Program that would satisfy their creditors, the situation had already become critical. However, after measures were taken by CDCC, creditors were contacted and presented with a Disclosure Profile on the business' condition, as part of the mediation process. Since they could no longer levy, agencies and attorneys recommended that their creditors cooperate, and four outstanding lawsuits were dismissed. The business debts that were due all submitted creditors were restructured in less than six weeks and both sides saved significant expenses. The business was eventually restored to financial health with the help of a CDCC strategic partner who also helped bring their days-sales-outstanding back to historic levels. The company is now an industry leader and details of this successful case study are being utilized in the MBA program of a leading business school.