Debt negotiation is an alternative to bankruptcy. During debt negotiation, an agreement is made between you and your creditors to settle your debt by paying a lump sum that is less than the total amount owed. Creditors may agree to this in order to recover at least some of the outstanding debt owed them instead of risking a greater financial loss if you become unable to pay or if repayment would take a long time.
In a Chapter 7 bankruptcy, you may be able to receive full loan forgiveness for unsecured loans, whereas a debt settlement will only erase a portion of your debt. Typically, debt settlements discharge at least 30% of outstanding debt. In many situations, bankruptcy is a better option because it discharges more debt. However, debt negotiation does have certain advantages.
Advantages of Debt Negotiation
If you are ineligible for Chapter 7 or Chapter 13 bankruptcy, debt settlement is likely your best option. In general, more people qualify for a debt settlement than bankruptcy, depending on the particular requirements of your lender. A lawyer from our firm can help negotiate terms with your creditors and find a solution that is in your best interests.
Furthermore, debt settlement does less damage to your credit score than bankruptcy does. A Chapter 7 bankruptcy will stay on your credit report for 10 years, and a Chapter 13 for seven years. You can avoid this detrimental mark on your record by coming to an agreement with your creditors and settling the debt right then and there.
Contact DBM Private Investigator for effective representation!
If you are considering debt negotiation, we urge you to enlist the help of an experienced Federal and State Private Investigator from our firm who can help ensure that you reach a fair agreement with your creditors. We can moderate and even handle the negotiation process for you and advocate for your best interests.
We are prepared to help you achieve the debt relief you need to move forward in life. Contact us now! (949) 422-5617.