New Jersey Debt Settlement Lawyer
Debt Settlement FAQs
What is debt settlement?
Debt settlement, also called debt negotiation or debt arbitration, is a process that occurs when a borrower and creditor negotiate with one another to resolve debts the borrower owes. During negotiations, the debtor will try to get the creditor to reduce the balance that is owed. Once the creditor and the borrower reach an amount they both can agree on, the borrower must pay that amount in full within a set period of time. The debt will then be settled or resolved and the account will be closed.
Will debt settlement reduce the total amount of debt I owe?
In many cases, people have managed to reduce their debt by 40 – 60% percent. That amount may be lower or higher and will depend upon a person’s individual circumstances. Most people find that creditors want to receive some form of payment so they are willing to work with borrowers to settle debts instead of keeping the account in collections, which costs creditors time and money.
Will I have to speak with my creditors?
No, you do not have to speak with your creditors if your work with a New Jersey debt settlement attorney. The professional you hire will speak directly with your creditors on your behalf. This will save you immense time and frustration. Also, it is a known fact that when people hire professionals to help them with debt settlement, they stand a much greater chance of having their debt reduced and will get out of debt in a shorter amount of time.
Will debt settlement put an end to creditor harassment?
Yes, once your debts are settled, your creditors should no longer call you as you will have resolved your delinquent accounts. In cases where people work with legal and financial professionals, like the professionals at Liberty Credit Law, PC, creditors will stop calling them as soon as the debt settlement process is initiated.
Will debt settlement show up on my credit report?
Yes. When you settle your debts, it will show up on your credit report and may lower your credit score. However, by resolving your debt now and taking appropriate measures in the future, you will be able to repair your credit score over the course of time.
Contact a New Jersey Debt Settlement Lawyer at our firm if you have more questions about debt negotiation and settlement.