Lancaster Debt Settlement Lawyers
Many southern California families struggling with debt may believe that filing for bankruptcy is their only option. While bankruptcy can provide you with a “fresh start,” there are a number of potential drawbacks that might not make it the right choice for you. But that does not mean your only alternative is to stand back and wait for your creditors to sue you. Instead, you can be proactive in seeking to settle your debts for less than what you owe.
Wadhwani & Shanfeld is a team of experienced Lancaster debt settlement lawyers who can review your current financial situation and help you develop a comprehensive strategy for negotiating with your creditors. Our practice focuses exclusively on bankruptcy and consumer debt issues. So we have the experience and the resources to provide you with a full range of options for getting out from under your debt and back on a path towards financial security.
How Debt Settlement Can Help You
The basic concept of debt settlement is that your creditors agree to accept less than what they claim you owe. Typically, this means paying a lump sum to the creditor that represents a discount off the full balance of the debt. For example, if you owe $50,000 to a credit card company, the lender might agree to accept half that amount upfront and “forgive” the other half, meaning you are no longer obligated to make ongoing monthly payments and accrue additional interest charges.
The reality is that many creditors are willing to enter into debt settlement negotiations. Unsecured creditors understand that if a debtor filed for bankruptcy–especially Chapter 7–they are likely to walk away with little or nothing. So it is in their interest to negotiate with a debtor before bankruptcy becomes necessary. Even if you have secured debts, such as a home mortgage or a car loan, the lender will often prefer to renegotiate the terms of your loan rather than incur the time and expenses of repossessing and re-selling the property that was used as collateral.
It is also important to be proactive in pursuing debt settlement. Simply waiting around and hoping your creditors will do nothing is generally a bad strategy. Here are just a few reasons you want to take action now:
- Your creditors can sue you for the money you owe.
- If your creditors obtain a judgment, they can use that to garnish your wages and place liens on your property.
- If you have a secured loan, the lender can foreclose and seize the property.
- You will continue to gather interest charges, and potentially late fees, the longer an open account remains delinquent.
Contact Wadhwani & Shanfeld Today
Debt settlement may not be possible in all cases. You may end up filing for bankruptcy. But if you are looking to explore all possible alternatives for cleaning up your finances, it is best to speak with a skilled Lancaster debt settlement attorney as soon as possible. Contact Wadhwani & Shanfeld today to schedule an initial consultation with a member of our team.