Negotiating Points for Debt Settlement
Georgia residents who are struggling with significant amounts of unsecured debt may be able to get out of debt by negotiating a debt settlement agreement with one or more creditors. Debt settlement involves a dialogue with the creditor. That discussion concerns the debt owed and the amount the debtor is willing to pay, as well as the amount the creditor is willing to accept. In short, with debt settlement, a debtor will pay a percentage of the total debt owed. That percentage is typically paid in a lump-sum payment. In exchange, the creditor agrees to forgive the remaining debt.
What are some of the key negotiating points to think about when you are considering debt settlement? Consider the following information from our Lilburn debt settlement lawyers.
Your Debts are Delinquent
One of the most important negotiating points in debt settlement is that your debts are already delinquent. As a result of the delinquency, the creditor is in a situation where they are unlikely to be paid anything at all if they do not accept a settlement offer. If a creditor does not accept a settlement offer, the most they are likely to receive is an extremely small percentage of what they are owed by selling the debt to a debt collector. Typically, that type of sale goes for “pennies on the dollar.” Accordingly, if your debts are delinquent, the creditor should know that you are unlikely to become current and that it is in their interest to accept a debt settlement offer.
You Have Enough Money Set Aside for a Lump-Sum Payment
It will be important to make clear that you have enough money set aside to make a lump-sum payment for a portion of the debt you owe. A creditor will only accept a debt settlement offer if it knows you have the ability to pay, and usually to pay it all at once.
Most debt settlement agreements will require payment of a lump-sum payment as soon as the settlement is agreed upon.
You Have Terms in Mind and Can Stick to Them
Negotiating skills are also essential in any debt settlement negotiation. It is critical to have terms in mind that are acceptable to you, and to stick to them in negotiations with the creditor. Rather than deciding on a percentage you can pay, you should think about the total amount you would be willing to pay. Then, you will need to stick to that amount when dealing with the creditor.
This is part of the process where it is extremely helpful to have an experienced attorney on your side. You can discuss the maximum amount you would be willing to pay with your lawyer. Then, your lawyer can engage in settlement negotiations with the creditor.
Contact a Georgia Debt Settlement Lawyer Today for Assistance
Are you considering debt settlement? If so, an experienced Georgia debt settlement attorney at Konn Law Firm LLC can help you to negotiate a fair debt settlement offer with your creditor or creditors. Do not hesitate to get in touch with us to find out more about the debt settlement services we provide, and to have any of your remaining questions answered. Contact our firm today.
Source:
bankrate.com/personal-finance/debt/what-is-debt-settlement/
