Debt settlement, also known as debt arbitration, debt negotiation or credit settlement, is an approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full.
Typically creditors will settle between 30% – 70% of the final balance. However, we do see fantastic results well below that. We have settled many repossessions and home equity balances for as low as 10% of the total balance for our clients. The best part of our debt settlement program is the cost. We offer the lowest pricing structure in the industry for debt settlement. Reach out now for a free analysis of your debt load.
We advise all our clients to be very wary before speaking with any Bankruptcy Attorney’s. All to often we find clients that were urged into an unnecessary BK.
The Debt Settlement Process
What you need to know:
- Evaluation: Many debt settlement companies offer a free evaluation to see if debt settlement is the right option for you. It’s as simple as a phone call.
- Plan Customization: The debt settlement company will consider your specific situation and determine the best plan for you that will resolve your debt quickly and save as much money as possible.
- Accumulate: After your plan is established, put away a portion of savings every month to a debt settlement account. This will be an FDIC-insured account.
- Negotiate: At this point, your debt settlement company will negotiate with your creditor on a settlement sum. Your creditor knows that it’s better to receive some funds from you than none at all.
- Settle: If negotiations go as planned, yours creditor will settle with you for the lump sum you accumulated. Repeat this process until all creditors are paid. This can usually take 24-48 months.
Depending on the size of the savings, their can be Tax implications to debt settlement. We can inform you of the details.