The ongoing COVID-19 pandemic has wreaked financial havoc on almost all Americans nationwide. If you have accrued insurmountable credit card debt, our office may be able to help you negotiate with your creditors to repay only a portion of the amount owed. Settling your credit card debt involves negotiating an acceptable payment that is less than what you owe on your account. In turn, the creditor will release any claim they may have against you in the future. In other words, they cannot come back and say you owe them more in the future on your account that you settled.
Credit card companies are often willing to engage in these types of credit card debt negotiations because receiving a discounted payment is better than the prospect of receiving no payment at all in the event you opt to file bankruptcy. The advantage in hiring an experienced law firm to settle your credit card debt is that the creditors know that we have the capability of filing bankruptcy if they fail to settle your claim.
Is Credit Card Settlement the Right Option for Me?
In some cases, filing bankruptcy may be the best way to resolve your financial issues. However, for many reasons, some of which discussed below, settlement might make more sense.
- Recent bankruptcy filing. If you have recently filed bankruptcy, you will have to wait until the requisite time has passed before you are eligible to file another case. As such, settlement might be not only the better option, but perhaps the only option to reduce or get rid of your credit card debt.
- Maintaining relationship with a creditor. Filing bankruptcy will not allow you the ability to pick and choose which creditors to include and which to keep out. You must include all creditors, all of whom will receive notice of your bankruptcy filing. Under 11 U.S.C. § 547, paying off one debt and not the other is called “preferential payment”, which can be avoided by the trustee.
- Cheaper option. Negotiating credit card debts is a much cheaper option than actually filing bankruptcy. It can also be done in a much quicker manner, allowing you to move on debt free more quickly.
Call an Experienced Central Valley Credit Card Debt Settlement Attorney
If you or someone you know has accrued significant debt during the COVID-19 crisis, or for any other reason, you may be able to reduce or erase your debt by negotiating your debt with your creditors. To do so successfully, it is your best interest to consult with an experienced attorney who can advise you of your legal rights and options.
For more information or to schedule a complimentary consultation with Central Valley credit card debt settlement attorney Gurjit Srai, please call (209) 395-0761 or (559) 449-1447, or complete our online form.