Debt settlement is a powerful and effective method to resolve your debts for less than you owe, in order to get your financial situation back into a manageable condition and move forward with your life. While it may seem like an easy decision to make at first glance, there are a lot of different factors that you will need to consider before you move forward with this possibility. One of the best ways to ensure that you have considered all options and are choosing the best one for your situation is to work with an attorney who can help you through this whole process. An attorney experienced in bankruptcy and debt settlement can help you determine which is best for you.
Take a look at some of these very important questions when it comes to deciding whether or not this is the appropriate solution for your own financial needs, and contact our firm as soon as possible in order to begin working with an experienced debt settlement attorney today.
Debt Settlement and Negotiation
Whether you are attempting to negotiate some debts or all debts that you are currently struggling with, you will need to develop a strategy and goal for each of these negotiations that you will go through. Since you are opting to settle debts directly instead of filing for a bankruptcy, you will have to work with the creditors in order to find a solution that works well for both of you, and ultimately leaves you in the position that you are hoping for.
The best way to do this is to work with an attorney who is experienced with debt settlement from the start. With the help of your attorney, you will be able to take stock of all of your debts and identify a path forward with each of them, before then having an attorney act as your intermediary during actual negotiations.
We understand that you are likely in a stressful financial situation, which is why the team at Gahanian Law is happy to help you with this piece of the process so that you can move forward with your life. Contact us now to get started.
Debt Settlement Pros and Cons
Settling your debts can provide you with enormous relief for your financial circumstances, but it is important to recognize that there are a variety of drawbacks when you choose this path, too.
The Pros of Debt Settlement:
- You may be able to avoid filing for bankruptcy
- You will be able to stop getting so many calls from debt collectors
- You will regain control over your financial situation
The Cons of Debt Settlement
- You need liquid cash to negotiate with
- There is nothing that compels a creditor to work with you
- Your credit can take a significant hit
- It can be overwhelming to deal with each creditor and collection agency individually.
Frequently Asked Questions about Debt Settlement
The following are just a few of the questions that we will be happy to help you understand more specifically for your own situation during an initial consultation. Contact us now to get the specific answers to your question as we go through your financial circumstances and go over a range of options that will help you resolve these issues.
Is debt settlement a good idea?
There are certain instances where debt settlement is a good option, but the specific answer to this question depends on a variety of different factors that we will need to discuss. In some cases, filing for bankruptcy may be the more prudent approach to your debt, or we may be able to identify a different solution entirely. Gahanian Law will ask you about your other debts and your ability to repay this debt to help you make the decision.
How much does debt settlement affect your credit score?
Your credit score is a simple representation of a complicated collection of data that includes things like your payment history, your debt to credit limit ratio, whether or not you have ever defaulted on a loan, and more. As such, we will need to go through many aspects of your life before we can decide how much of an impact that debt settlement will have on your credit score.
If you are struggling to make payments or missing them entirely, settlement could immediately help it go up. However, if you stop making payments as you try to gather a lump sum to settle with, this could negatively impact your score in more ways than one.
What percentage of a debt is typically accepted in a settlement?
Typically, we will need to offer a minimum of 30% of the overall debt in order to begin a negotiation with your creditors. In some cases, the creditor may require up to 70% or more in order to settle your debts and close out your account, but this range of percentages requires additional context before we can determine the reality of your own situation. Who owns the debt and if they have already sued are important factors to consider.
Contact Us Today
If you are struggling with debts and trying to understand your best options to get out of this situation, contact the team at Gahanian Law as soon as possible. During your free initial consultation, you will be able to speak with an experienced bankruptcy attorney and get direct feedback and guidance on your situation while understanding how we can help you.