9:00 am- 5:00 pm

Hours Mon. - Fri. (Sat. & Sun. by appt. only)




Debt Negotiation or Debt Settlement

GeorgetteMillerLaw.com > Bankruptcy  > Debt Negotiation or Debt Settlement

Debt Negotiation or Debt Settlement

The goal of debt negotiation or debt settlement is to work out a lump sum settlement or a payment arrangement with creditors. Debt negotiation is not possible in all cases, and Chapter 7 or Chapter 13 may be better alternatives for you. In addition, not all creditors are willing to enter into such a plan. However, savvy creditors will sometimes negotiate with an attorney rather than seeing the debt become non-collectable. In some cases debt negotiation may be preferable to bankruptcy.

When is the time to consider a Debt Negotiation:

-You can payoff the balances if settled for a greatly reduced amount.

-You can pay the creditor, if the payments are reduced.

-You want to avoid having bankruptcy appear on your credit report.

-Your financial difficulties are very short term.

-The problem is primarily with one or a few creditors.

-You have filed for Chapter 7 bankruptcy in the last 8 years.

Debt Negotiation/Settlement

Debt negotiation companies report that they will negotiate with a consumer’s lenders to lower the total amount of debt owed for an upfront fee.  Unfortunately, some consumers who pay for debt negotiation services find out that the company never contacted their lenders, but instead, took their money.

Debt consolidation companies offer to roll up various debts allowing the debtor to make one lower payment to the company, rather than many payments to the different lenders. While debt consolidation makes paying monthly bills more manageable, keep in mind that some companies tack on high fees and charge ridiculous interest rates, which means the consumer is paying much more in the long run.

Before making any major decisions make sure you stay in contact with lenders and try to work out a plan or seek legal help to direct you to the best course of action depending on your circumstances.