Debt Settlement

If Bankruptcy doesn’t fit your financial goals, you still have other options to eliminate your debts. Debt settlement could be a way to solve your debt problem without Bankruptcy. 

What is the difference between Debt Settlement and Debt Consolidation? Debt settlement is if creditors agree to accept less to consider a debt “paid in full.” In theory, Debt consolidation is making one payment to cover all your debts. However, consolidation usually requires getting a loan to repay your debts or settling them at a discount.

But this is the catch – companies that offer “debt consolidation” aren’t lenders. Your state government licenses every Lender, and this business is highly regulated. But debt consolidation companies do not want the government looking at them too closely. So instead, they offer debt settlement which they disguise as debt consolidation. This sleight of hand has an essential purpose – to make them more money, to hide from any responsibility to their customers, and to make repaying your debts impossible. So while you believe your payments are going to your creditors, your payments are only paying the fee to the “debt consolidation company.” Debt consolidation companies don’t begin negotiations to repay your debts until you pay their fees in full and have money on deposit to pay out a settlement. As a result, people often make payments for years. While this takes place, these debt consolidation companies do nothing to earn their hefty fee.

How Does Debt Settlement Work?

Debt settlement works because collecting is difficult and expensive if someone doesn’t voluntarily pay. As a result, a skilled negotiator can negotiate terms to eliminate debts at a discount. Depending on the circumstances, your savings might be modest or substantial. Debt settlement is a good option for someone who can pay part of their debts but struggles to get on top of all of them. In addition, debt settlement offers the advantage of letting you overcome debt struggles without having to disclose your financial circumstances publically.

Each method of debt relief has advantages and disadvantages. So at A Fresh Start, we recommend you keep an open mind and consult a debt settlement lawyer who thoroughly understands bankruptcy law. At A Fresh Start Law, Attorney Dorothy Bunce can answer your questions so that you understand your options before you make this decision.

Can All Debts Be Taken Care Of With Debt Settlement?

Debt settlement only works if a creditor agrees to settle. No one, not even a Judge, can force a creditor into settling. So, of course, debt settlement involves some risk. At A Fresh Start Law, we believe our clients should understand their risks and limit them whenever possible. So our retainer fee is modest. We don’t earn our fee until we obtain the results you want. Also, we don’t require you to give us your settlement funds until we have a settlement agreement. Although some clients ask us to do this, at A Fresh Start Law, we don’t require this.

Is Debt Settlement a Good Idea?

You should consider several issues before deciding to settle your debts. Are your goals realistic? While Debt settlement has worked for many people, it has not worked for many others. Whether debt settlement will be successful depends on objectively evaluating your circumstances. Reach out to an experienced debt settlement lawyer, such as A Fresh Start Law in Las Vegas, to give you an objective analysis about using debt settlement.

Advantages of Debt Settlement.

  • Stops creditors and collectors from harassing you.
  • Avoids Bankruptcy.
  • Could reduce your debt.
  • Keeps your financial information private.

Disadvantages of Debt Settlement.

  • Creditors may refuse to negotiate.
  • Because of interest and late payment fees, you may have more debt.
  • Your credit may see a negative impact.

Speak with a skilled debt settlement lawyer at A Fresh Start Law today.

We negotiate with your creditors and find the solution that works best for you.

Is Debt Settlement Right For Me?

Your chance of success will increase if you hire an attorney who knows the ropes and knows those working for your creditors. Is debt settlement the ideal option to get your debt under control? Before answering, at A Fresh Start Law, we will first analyze your circumstances. If you are not likely to be able to afford to settle your debts, we will tell you this. If you expect unrealistic results, we will also explain why. Choosing debt settlement is an important decision. Because one size does not fit all, the team at A Fresh Start Law suggests considering many factors before making a final decision.