Top 5 Questions About Debt Settlement
Anyone in Lilburn or the surrounding area in Georgia who is struggling with debt should learn more about debt settlement and its benefits. When a consumer is thinking about the possibility of debt settlement, many different types of questions come up. As you might know, debt settlement is a process of negotiating with your creditor or creditors to pay a percentage of what you owe in exchange for having your remaining debt forgiven. As Bankrate explains, the amount you pay will typically be due in a lump sum.
While certain questions will be particular to a debtor’s circumstances, the following are five of the most commonly asked questions about debt settlement. These questions are followed by detailed answers that can help you to understand more about debt settlement before you speak with an attorney about your specific case. Consider the following information, and then get in touch with our Georgia debt settlement attorney for assistance.
- What Types of Debts Can Be Settled?
Most types of unsecured debt can be settled, especially if you are in default or your payments are past due. Credit card debt is a type of debt that is commonly settled. Yet many other types of unsecured debt can be settled, as well. For example, you may be able to settle debt from a personal loan or medical debt.
- What Are the Benefits of Debt Settlement?
The major benefit of debt settlement is that you will be able to get out of debt, and for less than the total amount you owe.
- How Is Debt Settlement Different from Debt Consolidation or Chapter 7 Bankruptcy?
Debt settlement is very different from debt consolidation and bankruptcy. Debt consolidation usually involves consolidating all debts into one regular payment. Over time, the debt must still be repaid in full. Chapter 7 bankruptcy involves the liquidation of all nonexempt assets you own so that you can have eligible debts discharged. With debt settlement, no assets are liquidated and you will not need to repay your debt in full. Instead, you will usually pay a lump sum that is a percentage of the total amount you owe. Your creditor will then forgive the remaining amount of debt. Once the remaining debt is forgiven, you will no longer be liable for it.
- How Will My Debt Settlement Agreement Be Negotiated?
Your lawyer will negotiate the final settlement agreement with your creditor or creditors.
- How Much Will I Owe in a Debt Settlement Agreement?
The amount you will owe will depend on the total debt you owe to the creditor or creditors. Typically, debtors will pay only a percentage of what they owe to settle their debt.
Contact a Lilburn Debt Settlement Attorney
Do you have questions about debt settlement? Or do you want to find out more about your eligibility for debt settlement and the amount you might expect to pay? It is important to seek legal advice and to provide your lawyer with detailed information about your particular financial circumstances. One of the experienced Lilburn debt settlement lawyers at Konn Law Firm LLC can learn more about your financial situation and can help you to understand your options for debt settlement. Once you are ready to move forward with debt settlement, we can begin the process of negotiating an agreement with your creditor or creditors. Contact us today for more information.
Source:
bankrate.com/personal-finance/debt/what-is-debt-settlement/
