You have been paying your debts on time each month, but now your circumstances have changed and you are unable to make ends meet, let alone pay your debts down. The thought of credit card debt lurks in the back of many of our minds all day, every day.
If you are “drowning” in debt, it is important to realize that you are not alone and that there is help available. With the assistance and guidance of an experienced Stockton bankruptcy or debt settlement attorney, you may be able to get the debt relief you need and avoid the inevitable nightmare of filing bankruptcy.
Debt Settlement Defined
Debt settlement is an effective alternative for those of us who are struggling to cope with mounting debt. Put simply, to settle a debt means to agree to pay it off at once at a lower amount than you owe. This means that your lender is “settling” for a lower amount than you owe.
The creditor’s motive for agreeing to this is to recoup as much of the funds as they can, knowing it is unlikely that you will ever be able to pay the mount in full. A creditor is more likely to agree to settle your debt if your account has gone unpaid for several months or after your account has been sold to collections.
Your motive for settling your debt is to resolve the debt in one full swoop and avoid the harassing phone calls and letters from debt collectors and creditors.
The Debt Settlement Process
The end result of debt settlement is to have your debt paid off at a lower amount than what you already owe, as agreed between you and your lender. In order to achieve this goal, you do need to pay it off at once – not a monthly payment plan.
Your San Joaquin County debt settlement attorney will contact each of your creditors and negotiate a settlement at a portion of the total debt owed. This is a complicated process that is best handled by an experienced attorney who has the tools and financial expertise to help you through your financial crisis.
An effective attorney can help stop the late fees and penalties that have been accruing on your accounts. He can also either completely stop or at least limit the harassing phone calls from collection companies.
Debt settlement can help you with debt from:
- Credit cards
- Credit unions
- Unsecured loans
- Business loans
- Unsecured personal lines of credit
- Cars in repossession
- Medical and hospital bills
At the completion of the debt settlement process, your attorney can help you create a financial plan that promotes comprehensive debt management so you may build your future to the financial status you dream of.
Call an Experienced Stockton Bankruptcy Attorney
For more information about debt settlement or any other bankruptcy needs, or to schedule a complimentary consultation with San Joaquin County bankruptcy attorney Gurjit Srai, please call (209) 323‐5558 or (559) 449‐1447. You can also complete our online form.