Do you feel like unpaid bills and credit card debts only seem to be getting larger every day rather than smaller? If you want to finally be free from your debts and aren’t sure whether bankruptcy is the right choice for you, debt negotiation may be a viable solution.
What Is Debt Negotiation?
Debt negotiation is a process that can significantly reduce or eliminate your debt. It occurs when you negotiate with your lenders to come up with a settlement. Typically, this settlement amount is a lump sum and less than the amount you previously owed.
How Does This Process Work?
This process is only beneficial if your creditors are willing to work with you to come up with a settlement amount. Because it is a negotiation process, it may take several phases before you and your lender can agree upon a specified amount.
Why Do Lenders Agree to a Settlement?
In many cases, the debt you owe on your bills is merely profit for your lenders. If you are considering bankruptcy, many lenders will agree to negotiate because this way, they will receive at least a portion of this profit rather than none of it.
Debt negotiation, as opposed to bankruptcy, may be best for your situation if your debts are unmanageable but still relatively small, and you want to forgo the consequences of filing for bankruptcy. If you live in Western North Carolina, including Asheville, Spruce Pine, Burnsville, Marion, Morganton, Rutherfordton, Sylva, Waynesville, Murphy, Franklin, Brevard, Fletcher or Hendersonville, North Carolina, we can help you determine whether or not debt negotiation is the right solution for you. Contact us today at Leonard & Moore, PLLC.