Southern California Credit Card Debt Settlement Lawyer
Credit Card Settlement Process in California
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 that account.
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 to settle.
On This Page:
- Is This The Right Option for Me?
- How Does It Work?
- Recent Bankruptcy Filing
- Maintaining Relationship with Certain Creditors
- More Information About Credit Card Debt Settlement
Dial (800) 996-9932 today to discuss your situation with our Southern California credit card debt settlement attorneys.
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.
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.