subject: Legally Settle Credit Card Debt - How Does An Attorney Backed Debt Settlement Program Work? [print this page] Debt settlement is a plan where creditor accepts a smaller amount than the original balance from the debtor and accepts it as paid in full. Debt settlement involves negotiating with your creditors. It is always a good idea to seek help from a competent debt settlement lawyer. In many cases you will find that the credit card companies deal much better with professionals. Hiring a good debt settlement lawyer, experienced in handling successful debt negotiations, is the best way to get your debts settled. There are also debt settlements companies out there and most of them are reliable and get good results. Some of them have highly skilled professionals and others have attorneys.
How Does It Work
Now, you might ask, how does the process actually work? Once you have located an attorney, it is just the beginning of a long process, which will allow you to start sleeping at night, protect your credit ratings and your assets and stop those harassing phone calls, letters and threats. Just remember, you did not get into debt overnight and negotiating a good settlement can take time.
When you sign up for a settlement program, your monthly payments to the attorney are placed in an escrow account for the first two or three months. Once enough money has been deposited into the account, your representative initiates the negotiation procedure with the creditors. To be taken seriously, you must have funds accumulated to offer to pay immediately to your creditors. Lump sum repayment plans actually work best for the creditors and they agree to the settlement deals easily.
In order to settle your debts, you or the company/lawyer you hire negotiates with the creditor to arrive at an amount that is acceptable to both the parties. Debt settlement usually reduces about 50% of your outstanding debt amount. A skilled negotiator can get your payable amount reduced up to 70%. The lawyer will generally negotiate with the creditor and threaten the lender that the only option that will be left for you is to file for bankruptcy in case the settlement offer is declined by the creditor. The creditor will generally accept the deal because it will be far better than selling off the debt to a collection agency which will give only 20-30% of the total money collected to the creditor.
How Long Does the Process Take?
The time it takes for debt settlement program usually depends upon the total number of debts, the kind of debts, the total amount of the outstanding debts which a debtor intends to settle, and the amount the debtor can afford to settle for. In general, settlement cases get completed in about 18 to 36 months.
How Much Does This Cost?
Remember, nothing is free in this world. A good debt settlement attorney can save you more than their fees and get you on your way back to good credit. Debt settlement program is an excellent way to avoid bankruptcy. It is always advisable that you hire a settlement lawyer/company to give you the professional advice you need. Your fees will depend on how much you owe, how many creditors you have and the amount of money the attorney can save you. There is no set fee and do not get taken advantage of just because you are in trouble... Use a reliable Attorney or Company and check them out.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.
Legally Settle Credit Card Debt - How Does An Attorney Backed Debt Settlement Program Work?
