Debt Settlement

What is Attorney Debt Settlement?

Debt settlement is an alternative to bankruptcy and involves the negotiation of an agreement to pay a reduced lump sum payment to an individual creditor in satisfaction of the outstanding balance owed to that creditor.

For example, if you owe CREDITOR $20,000.  You hire an attorney to help negotiate the debt owed to CREDITOR.  After negotiation CREDITOR agrees to accept a lump sum payment of $11,000 as satisfaction of the debt.  You and CREDITOR sign an agreement and you pay CREDITOR $11,000, and the debt owed to CREDITOR is satisfied.

Is Debt Settlement the Right Option for Me?

You should seek the advice of a skilled attorney when deciding whether debt settlement or an alternative such as bankruptcy is your best course of action.  Unfortunately most attorneys do not practice both debt settlement and bankruptcy.  Often if you meet with a debt settlement lawyer he/she will tell you debt settlement is your best option, and if you meet with a bankruptcy lawyer he/she will tell you to file bankruptcy.  At Ariano & Reppucci we practice in both debt settlement and bankruptcy and can offer an unbiased opinion as to your best financial solution.

Sometimes you pay less to your unsecured creditors in Chapter 13 bankruptcy and sometimes you pay more.

How Do I Start the Debt Settlement Process?

If you decide to proceed after your free consultation we devise a plan to settle your debt.  The plan is specifically tailored to your financial situation and involves a number of factors including the amount of debt, the type of debt, your income, and much more.  Our goal is to settle your debt ASAP for as little as possible.

Once you begin our program we alleviate some of your stress by dealing with the creditor calls and letters, as well as handling all negotiations with your creditors.

What’s the Difference Between Debt Settlement and Chapter 13 Bankruptcy?

Debt settlement involves the negotiation of a debt with an individual creditor to pay a lesser amount in satisfaction of the debt.  Chapter 13 is a reorganization of your debt where you pay an amount to your unsecured creditors based upon your disposable income or the value of you nonexempt assets, whichever is higher.