The process consists in the negotiation with your unsecured creditors to convince them to forfeit their full demands for repayment of your outstanding debts and accept a smaller amount, relieving you of all your obligations for repayment once you have made a lump sum payment for the lesser amount that was negotiated.
Bankruptcy
Bankruptcy is obviously a very serious and drastic decision, and I definitely believe that it a choice that is to be taken only in the most extreme of situations. Bankruptcy makes a dark stain on your credit ratings that is very long lasting. As charge-offs (debts written-off by banks) keep constantly increasing day in and day out, most banks have established some kind of debt settlement department, usually fully staffed with professional debt negotiators who are fully authorized to negotiate with defaulted loans or cardholders to decrease the outstanding amounts owed in order to recover money that most likely would otherwise be completely lost in the case the defaulted individual were to file a Chapter 7 Bankruptcy. If you are currently considering bankruptcy filings, it is highly worth it to reconsider and try to find a way to negotiate or settle your debts. It just makes a lot of sense.
Local Bankruptcy Lawyers, File For Bankruptcy, Memphis Bankruptcy Attorneys,
Creditors
The truth about creditors is that most of them are more than willing to negotiation your debts with you. Creditors will usually accept less than 100% of the amount owed because they know that it is better for them to take that than keep spending money on collection efforts in the very unlikely and uncertain hope that one day in the future they will receive the full amount, specially because any additional amount collected by then will have easily been consumed by all the legal and collection costs incurred. Creditors are aware the most of the bankruptcies that occur nowadays are on current debt.
Consolidation
Debt settlement can affect your credit much in the same way as debt consolidation. However, the fact is that with debt settlement, the debt is ultimately paid off by the consumer directly or indirectly to the creditor resulting in better credit. In fact, you can even negotiate removing your bad record as part of the settlement. On the other hand, with Debt consolidation your are required to take a loan out to then pay off your outstanding unsecured debt with secured debt. What happens is that you end up not only having to pay for your outstanding debts but now you also have to pay off your consolidation loan.
In my opinion, Debt settlement is a much better alternative to bankruptcy, debt consolidation or credit counseling to favorably settle your outstanding unsecured debts that may or may not be due to credit card debts.
Settlements
Settlements can be done through one's own efforts or one can find a debt settlement firm to negotiate your debts for you. The process is the same no matter if one negotiatoes his debts by him or herself or if they enroll in a debt settlement program. However, most debt settlement companies and attorneys have special techniques that they use in order to achieve better results and get the lowest possible lump sum payment agreements with creditors. Just Beware if you get promises of extremely unrealistically low debt settlements.
In conclusion, debt settlement can be an amazing way to reduce the total amount of your debts by a large percentage, sometimes as high as 40-60%. It is also the best method for consumers to get rid of their debt problems in the fastest possible way and it is perfectly legal in all 50 states.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Chicago Bankruptcy Lawyers
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment