Debt settlement is an effective method of debt relief that involves offering your creditor a lump sum payment for your debt. The lump sum payment should be somewhat less than the original amount owed. In the creditorâ€™s eyes, this payment satisfies, or â€œsettlesâ€ the debt and rids you of your financial liability. Often, a debtor can obtain favorable settlement terms, because many creditors are willing to accept only 40% to 50% of the original debt amount. In some cases, they may even accept only 20% or 30% of the entire amount.
An individual can attempt to negotiate a settlement with their creditor, but there are cases in which the creditor will offer a settlement first if it is evident that the person will not be able to pay their full debt amount in the foreseeable future.
Debt settlement offers are usually finite in nature, and once they have passed, creditors can engage in further collection actions or even legal action. If you are intent on settling a debt with your creditor, or if you have been given a settlement offer, it is highly advised that you contact our Dallas bankruptcy attorney at the Engel Law Firm.
Engel Law Firm is Here to Help
Engel Law Firm has assisted clients who are seeking debt settlement as a means of paying their bills and raising their credit score. At our office, your questions will be answered quickly and in easy-to-understand terms you wonâ€™t have to sort through legal jargon.
Debt settlement, debt negotiation, and debt litigation are alternatives to filing for bankruptcy, but itâ€™s best to have an attorney assist you. Not only will our attorneys help you sort out the forms and legal proceedings through the debt settlement process, but weâ€™ll also act as your representative and make sure that you receive the best possible deal.
If you are struggling financially and are considering debt settlement, contact Engel Law Firm.