What is Debt Negotiation?
you are motivated to avoid personal bankruptcy but you can no longer afford to
pay all your debts, hiring a debt negotiation attorney may be the answer. Debt
negotiation and settlement is a process whereby a consumer retains the services
of an attorney to represent them in negotiations with collection agencies. The
attorney will leverage consumer protection laws, as well as their existing
relationships with major creditors, to negotiate the repayment of the consumer’s
credit card debts for less than the full amount owed.
Alternative to Bankruptcy
Debt negotiation and settlement is an alternative to bankruptcy. It is not the
same as credit counseling or debt consolidation. Debt negotiation involves a
lump sum settlement. (Debt consolidation generally involves extended payment
plans.) Debt negotiation and settlement can be a low cost solution and a
flexible method of debt elimination. By retaining the services of an attorney
to facilitate a debt negotiation, you receive legal protection against the often
predatory practices of debt collectors. Additionally, all legal aspects of the
debt, including credit reporting and re-sale of the debt, are usually covered in
the debt negotiation.
Debt negotiation and settlement may help you avoid bankruptcy and take the first
step towards reaching your goal of financial freedom. If you are buried in
credit card debt, you owe it to yourself to consider debt negotiation. It could
provide the peace of mind solution that you’ve been looking for.
When to Consider Hiring a Debt Negotiation Attorney
negotiation attorneys are not the answer to every debt problem. If you are
considering hiring a debt negotiation attorney make sure that your debts meet
the following conditions:
Your Debt is Significant.
If the amount of your debt is less than $5,000, chances are a debt negotiation
attorney is not right for you. Depending on the amount of settlement accepted
by the creditor, you might save more from the attorney fees if you negotiate
with the creditor on your own. Only hire a debt negotiation service if you owe
several thousand dollars.
debt is unsecured.
Do you have unsecured debt? Your car loan, for example, is a secured debt,
because if you don't pay on the loan your car can be repossessed. Your credit
card debts are unsecured debts which means creditors don’t have the ability the
take your stuff. Their own recourse is to sue you in court for their money.
This makes credit card companies more willing to negotiate debts owed to them
than a car financing company.
place a reasonable time limit.
Are you planning to get a loan in the near future? Debt settlement takes some
time to achieve a favorable outcome. If you set an unreasonable date to reach a
debt settlement, you've weakened your debt negotiation attorney's bargaining
Unlike other companies, we charge a flat fee for our services. This means that
our fees do not come out of your settlement. Beware of companies that charge
high monthly fees and make few promises.
Click here to contact our
office if you are considering
debt negotiation and settlement
of your debts.
Please note that our firm only handles debt negotiation of debts that are being
collected on by collection agencies. We do NOT handle debt negotiations
with original creditors.