What is Debt Negotiation?

If 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

Debt 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.

          Your 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.

          You 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 position significantly.

Fees

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.