The thought of bankruptcy can be intimidating and a little overwhelming. However, if you were the victim of financial misfortune and have found yourself in debt, bankruptcy is not your only option. Your attorney may suggest that you consider debt negotiation & settlement as an alternative to declaring bankruptcy.
During debt negotiation & settlement, a debtor may be willing to reduce the amount of debt that you are required to pay back. Before you begin negotiations with the assistance of your attorney, review your budget. A debt collector will often determine how much you are required to pay back, based on how much you are able to afford according to your existing expenses.
Once you and the collector have come to an agreement, it is important that the deal is recorded in writing. In order to finalize the terms of the debt negotiation & settlement, it must include:
- The amount you have agreed to pay
- Whether the amount will be paid at one time or over the course of a specified time period, and how these payments will be made
- Any concessions that your debt collector has agreed to
- An agreement made by your debt collector that states they will remove negative information off of your credit report after the sum is paid
Before you sign this document, make sure you have your attorney look it over to ensure there are no errors and that everything you and the collector have agreed upon is included.
Are you considering debt negotiation & settlement in Asheville NC? Contact us at Leonard & Moore, PLLC. Our law firm has been in business since 1979, and we provide a variety of services to help you with your legal needs. Give us a call today.
