Depending on your situation, you may be a good candidate for debt negotiation. Utilizing several strategies, we can often reduce your debts in exchange for a lump sum payment or a few payments. Our firm has experienced good success, sometimes achieving settlements that reduce the balance owed by 70-85%.
Whether you are a good candidate for debt negotiation depends on several factors, such as how much you owe and to whom it is owed, as well as timing and how much cash you have on hand.
Zimmermann Law Offices has the experience and knows the strategies that work for achieving reduced settlements far below the balanced owed.
Common Questions About Debt Renotiation
There are several reasons why hiring an experienced attorney to negotiate debts, such as credit cards, is important.
Timing is very important. Calling too early makes it difficult to achieve a good settlement and calling too late can make the situation worse, as well as far more difficult to settle.
Knowing how to communicate and who to communicate with is also important. Certain departments within a credit card company may be willing to give you a better settlement. Certain collection staff may be willing to give you a better offer than others. We know the departments and collection professionals to contact. We also know how to use federal and state laws to your benefit and bring the creditors to the bargaining table.
An attorney can also approach your creditors rationally and calmly. Creditors use trained collectors to put lots of pressure on you and to use techniques that psychologically force you into a bad settlement. They want to cloud your judgment and make it difficult for you to make clear decisions. It is very important to have an objective professional on your side when dealing with these creditors or their collection agencies.
Most importantly, an attorney can properly document the settlement so you don’t have to worry about that creditor suing you later. Don’t let them take advantage of you by getting a payment and then asking for more money later!
Negotiation usually requires a lump-sum payment. It is unusual for a creditor to agree to payment plans.
You should expect to pay anywhere from 20% to 70% of what you owe your creditors. Again, each creditor is different. We know of many creditors who will only want 20-30% of what you owe them. However, a few may want as much as 70% of the balance you owe.
It is best to have the funds ready before hiring an attorney, but many do not. Some creditors settle quickly, but negotiations can take anywhere from 6-12 months. This allows you to get the necessary funds together.
Many people liquidate assets to come up with the money, use savings, or borrow from relatives or friends. Every person’s situation is different.