Debt Settlements in New York City
Debt settlement can be used as a broad term to refer to any attempt at negotiating debts. Specifically, debt settlement is sometimes referred to as the act of offering a lump-sum or installment payment toward the balance of an existing debt in exchange for the forgiveness of the difference.
There are other methods by which an NYC bankruptcy attorney can arrange negotiations with your creditors for more manageable repayment. At The Law Offices of Robert M. Fox, we create a plan of debt settlement in proportion to the amount you owe and other factors concerning your financial situation.
What Debts Can Be Settled?
If you have found yourself in a position of needing legal assistance for the management of debts, there is no cause or reason for you to be ashamed. Every year, millions of Americans are held back from the life they want due to outstanding debts and a bad credit score. The fact that you are considering debt settlement demonstrates your determination to push through this difficult time and improve your financial situation.
It is important to re-emphasize that debt settlement does not provide relief from all debts. Only unsecured debts are eligible for installment payments and total forgiveness.
Unsecured debts include:
- Credit card balances
- Cell phone bills
- Medical bills
- Business debt
- Other unsecured loans
Secured debts such as a mortgage or auto payments are not eligible for settlement because they are secured by collateral.
Why Settle Your Debts?
For those debts that qualify, settlement is an option that many should utilize before resorting to the legal proceedings of bankruptcy. While it is not always explicitly advertised, many lenders often cooperate with debt negotiation because it guarantees a large portion of repayment quicker than bankruptcy would.
With the incentive of quicker and substantive repayment, lenders are likely to cooperate with debt settlement efforts by your legal representative. By hiring an experienced bankruptcy attorney, the individual has tremendous leverage in settling their debt(s) and are often able to cut outstanding balances by 50% – 90%.
Whenever you decide to settle a debt, it is recommended you consult with a legal professional who is knowledgeable in this field of law. Having an experienced NYC bankruptcy attorney assist with your debt negotiation efforts will ensure that your rights remain protected from creditor abuse, allowing you to reach a fair and favorable settlement.
To learn more about your options for debt settlement and whether this type of negotiation is right for your particular financial situation, we encourage you to contact us by calling to schedule a free consultation with Attorney Fox.