Debt Settlement
An alternative to bankruptcy, debt settlement may offer you a fast, efficient way to deal with your financial issues, including difficulty in making credit card payments on accounts with a continuously increasing interest rate. Although relatively unknown, debt settlement is an effective alternative to filing bankruptcy. The attorneys at Luftman, Heck & Associates are committed to assisting our clients in each stage of the debt settlement process and in helping eliminate their consumer debt.
Debt settlement is not the same as debt consolidation.
Debt consolidation programs provide loans to the debtor in order to pay off existing debts while a high interest rate and fees are often charged on the loan. In some cases, the debtor may even be required to pay interest to the new creditor, and as a result, the principal debt balance remains equal. Debt settlement, on the contrary, involves a creditor negotiation process through which an agreement is reached and the debt is eliminated or a certain fixed amount to be repaid is established.
The debt settlement process
Our firm will assist you in establishing a reasonable monthly savings plan that fits your budget based on your total amount of your debt. Additionally, we will negotiate a settlement amount with your creditors, often a fraction of the original full loan amount. Based on the plan agreed to with your creditor(s), you will save enough money to settle your debt, which will be cleared upon full payment. A debt settlement program does not show up on your credit report, however, anytime you fail to pay a creditor, there will be negative marks placed on your credit report to reflect the late or non-payment. Once your debts are settled, your account will show the debts as being settled, putting you in route to rehabilitate and re-establish your credit, remove any errors from your credit report and begin to move toward financial freedom.
Contact one of our attorneys to discuss which debt settlement process works best for you.
