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The Road Out of Debt — Debt Settlement Brings Consumers Relief

It can happen to the best of us. With constantly rising prices and unexpected expenses, such as car repairs or emergency medical bills, it is not that difficult to end up with more debt than your income can cover. You can find yourself in the precarious position of borrowing from one creditor to pay another, with interest accruing on every credit card purchase or cash advance you make. Fortunately for many consumers, debt settlement can provide relief without the necessity of resorting to filing for bankruptcy.

When the bills get out of hand, bankruptcy is not the only solution available. Debt settlement is also a viable option that helps many overburdened consumers get back on their feet. When you consult with an experienced Los Angeles debt relief lawyer at DCDM Law Group, we can help you find the best debt relief solution for your financial situation.

Debt Settlement in Los Angeles

Debt settlement — also known as debt negotiation, debt arbitration, or credit settlement — is best conducted with an experienced debt settlement attorney negotiating for you. Aggressive negotiations are essential to the debt settlement process, and who you choose to represent you can make all the difference in how much, in the end, you will pay.

Key elements of debt settlement in Los Angeles include:

  • Negotiations take place regarding the settlement amount.
  • A reduced balance is agreed upon between the debtor and the creditor.
  • Payoff is generally made in one lump sum.
  • Creditor accepts the reduced settlement amount as payment in full for the debt.

Why Do Creditors Agree to Debt Settlements?

When a settlement is skillfully negotiated, creditors may accept as little as pennies on the dollar as payment in full on your account. You may wonder what reason they would have for agreeing to accept a small portion of the original balance. The answer is that creditors would rather have something than nothing.

In the absence of other debt relief measures, a consumer with more bills than income may elect to file Chapter 7 bankruptcy, in which case the creditor would receive little or nothing on the outstanding debt. Creditors enter into debt settlement agreements because it is in their best interests to do so. They receive more of the amount they are owed than they might receive otherwise. Payment is made in one lump sum, after which the debt is taken off the books and nothing more need be spent by the lender in an effort to collect.

Advantages of Debt Settlement to Consumers in Los Angeles

The advantages to consumers of settling a debt are simple and straightforward:

  • Your debt balance is reduced, often dramatically.
  • You pay off the entire debt in one lump sum and never have to worry about that debt again.
  • Settlement eliminates the threat of legal action being taken against you by the creditor.
  • Debt settlement can help you avoid the need to file for bankruptcy.

If your bills have grown beyond the limits of your income, a knowledgeable debt settlement attorney can help you find the best debt relief solution for your circumstances. At DCDM Law Group, we have been helping individuals find effective relief in a range of legal problems for more than a decade.

We offer affordable flat fees and alternative payment arrangements. Our Los Angeles debt settlement lawyers can help you determine the best course of action and negotiate skillfully and aggressively with creditors on your behalf. Contact us today to schedule a free consultation.

 

Dheeraj K. Singhal
About the Author
I help people keep the things they want and get rid of the things they don't want. I have been a lawyer for over 12 years and there are few things I enjoy more then getting great results for the people that trust me with their legal problems.