Debt Settlement

We find that in some cases where the debtor has the ability to pay and there is only a minimal number of creditors, Bankruptcy may be avoided by negotiating a settlement with the creditor(s). There are also certain cases where Bankruptcy is not recommended due to other reasons such as possible loss of assets, ineligibility or other problem issues that may come up after a case is filed. In debt negotiation, creditors may settle for cash and greatly reduce the actual amount owed, agree to a monthly payment plan or a combination of the above.

Types of debts that can usually be settled include credit card debts, automobile repossession deficiencies (we see a lot of these), medical bills and personal loans. If the debts in question have been delinquent for quite some time and/or the statute of limitations to bring a lawsuit to collect the debt is about to run out, creditors may even be more willing to accept a much lower amount in satisfaction of the debt owed.

Of course, if a lawsuit has been filed, some creditors may refuse to settle especially if an asset search has revealed that the debtor is employed and/or has assets such as a home, bank accounts or other property against which a judgment may be enforced. If a creditor is unsure about whether such assets may be available, the creditor may later force the debtor after obtaining a judgment to appear in Court at a “Debtor’s Examination” to inquire about the debtor’s finances and assets. Thus, timing may be a critical factor when attempting to negotiate a debt.

Our fees are usually based on the amount of money saved as a result of the settlement. Thus, you can be assured that we work hard to get you the lowest settlements possible.