Credit Card Settlement Lawyer
Southern California Bankruptcy Attorneys
If you have insurmountable credit card debt, our office may be able to
assist you in negotiating with your creditors to repay only a portion
of the amount owed. Settlement involves negotiating an acceptable payment
that is less than what you owe on the account. In turn, the creditor releases
any claim they may have against you in the future. This means that down
the line they cannot come back and say that you still owe them money on
Credit card companies are often willing to do this because receiving a
discounted payment is better than the prospect of receiving no payment
at all, which could happen if you pursue bankruptcy. The big advantage
to hiring a law firm to settle your debt is that creditors are aware that
we have the ability to file a bankruptcy case for you if they are unwilling
Is This The Right Option for Me?
Often times a bankruptcy filing is the best way to resolve your financial
issues. However, there are many reasons that settling might be a better
option for you.
Recent Bankruptcy Filing
If you have previously filed bankruptcy and the requisite time has not
passed before you may file another case, then settlement may be a good option.
Maintaining Relationship with Certain Creditors
In bankruptcy, you cannot pick and choose which creditors to include and
which to keep out, you must include them all and all will receive notice
of your bankruptcy filing. If, for whatever reason, you wish to maintain
a good relationship with a certain creditor or want to fully pay off a
few of your creditors and not others, then debt settlement is a better
option. In bankruptcy, paying off one debt and not others is known as
"preferential payment" and can be avoided by the trustee. See
11 U.S.C. § 547. Basically, this means that if any time in the 3
month period prior to your bankruptcy filing, you pay money to one of
your creditors, which results in the creditor receiving more than it would
otherwise in a bankruptcy, the bankruptcy trustee can make you return
that payment. See 11 U.S.C. § 547.
How Does It Work?
During your free consultation, we will go over your entire financial situation
with you to get an idea of what debts you have. Once you decide that you
would like to proceed and retain our office, we must find out what credit
cards you have and which ones you would like us to negotiate settlements
for. We also must determine the current status of all the accounts (where
they are now). For example, some of your accounts may have been transferred
to a collection company or may be a pending lawsuit.
If you are unaware of the current status or location of an account, we
can help to determine this for you. Once we locate all of the accounts
that you wish to settle on, we begin the negotiation process of contacting
the lenders and making settlement offers. This is a complicated process
that differs greatly among each creditor. That is why it is essential
to have an experienced negotiator who understands the process and the
intricacies of each company. What works with one company may not work
with another. Fortunately, our countless years of experience has given
our firm superb longstanding relationships with creditors and solid insight
into their negotiation techniques and practices. This allows us to get
the best settlement available for you.
More Information About Credit Card Debt Settlement