In this article, you can discover
- Negotiating a repayment plan or contacting creditors may be better alternatives to debt settlement
- The importance of having the right attorney who understands debt settlement
- Debt settlement attorneys cannot settle every debt, and creditors should not ask for more money after a settlement agreement has been reached.
Are There Alternatives To Debt Settlement That I Should Consider?
Negotiating a repayment plan on your own or contacting the creditor to negotiate a repayment plan can be a good alternative to debt settlement. Many creditors will send out an offer early on during the collection process, so you might get your best offer from the creditor before that debt is sent to an attorney for a lawsuit.
Is It Possible To Negotiate A Debt Settlement On My Own?
You can negotiate a debt settlement on your own. You might get an offer early on from the creditor to make a lump sum payment on the debt. You could also contact the opposing counsel or the collector and determine what your options are for the negotiation of the debt.
Will I Have To Pay More In The Long Run If My Attorney Works Out A Debt Settlement?
Your debt settlement attorney should help you make the lowest payment possible once that amount is turned over for collection. You shouldn’t have to pay more if your attorney works out a debt settlement with your creditors, although you may be responsible for their attorney’s fees, the attorney’s fees and the settlement should benefit you.
What Percentage Of Debt Is Typically Accepted In A Settlement?
In our experience, 60% to 80% of the debt is typically accepted in a settlement.
Can Creditors Request More Money After the Debt Settlement Agreement Has Been Reached?
The creditor should not be asking for more money. You should have a signed settlement letter that documents the settlement.
Why Is It Critical To Have An Attorney?
It’s critical to have the right attorney so that you get assigned a settlement letter that documents the settlement, and once that agreement is reached that you’re paying the appropriate amount, whether it’s a lump sum or a repayment plan.
Will It Take Long For A Debt Settlement Attorney To Negotiate A Settlement For Me?
For consumer debt, it takes one week to two months for a typical settlement. It can take longer in cases where opposing counsel needs to reach their client for authority for settlement, but most cases take one to two weeks. Other settlements can take one to two months.
Can A Debt Settlement Attorney Settle Every Debt?
A debt settlement attorney cannot settle every debt. A few creditors will only accept a full repayment, but most creditors will accept a settlement.
Can I Still Use My Credit Card While In The Middle Of A Debt Settlement Agreement Or Negotiation?
Typically, your credit card will have been closed by the creditor before collection, so you won’t be able to use that credit card while you’re in the midst of a debt settlement. Some creditors will allow you to reapply for credit after completing the settlement.
Why Am I Being Sued By Someone Else And Not The Lender Of My Loan?
You can be sued by another party when the debt is charged off and then sold to a debt buyer, so that debt can be transferred to another party, and that other party will then sue you for the debt.
Can My Debt Attorney Negotiate Any Type Of Debt?
Your debt settlement attorney can negotiate some types of debts, and that would include medical debts, medical bills, student loans, credit card debt, and business loans.
For more information on Alternatives To Debt Settlement In MD, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (240) 539-9393 today.