Another Option: Settle Your Debts For A Lower Amount
Debt Settlement and Reduction
Debt Settlement is another option that can reduce the total balance you owe on a particular debt. Sometimes, when you're behind on a credit card bill, a hospital bill, a loan or any other type of debt, our lawyers can help reduce the debt by pennies on the dollar. The account will close out, and you'll no longer owe any money on that debt.
How it works
The process is simple. Having a lawyer call your creditors to reduce your balances carries a lot more weight than non-lawyers, debt-settlement companies, consolidation companies and others that tell you they can reduce your debts.
Once we get in touch with your creditors, we will begin the negotiation process. With each offer, we will keep you informed and make sure it's an affordable settlement for you to rid yourself of the debt. Once you agree, the deal is done and the you will no longer owe that debt.
A couple things to keep in mind:
- Normally, you need to be behind on payments for a specific creditor to consider settling the debt for less.
- In most cases, the lender will want a lump sum payment for the reduced amount. You should make sure to have the funds ready if you'd like to accept the offer we get you.
- Sometimes, part of the settlement will include removal of the account from your credit report.
- Finally, there may be taxes due on the difference between the amount owed and the amount you settle for. We do not provide tax advice, and suggest you speak to a tax professional before accepting a settlement.