Providing Personalized Debt Relief Solutions in Washington, D.C., Prince George’s County and Beyond
In the simplest terms, debt settlement is a form of debt relief that allows debtors to pay a reduced balance which, when paid, renders all debts paid in full. This amount must be negotiated and agreed upon by both the debtor and the lender. Like other forms of debt relief, such as Chapter 7 or Chapter 13 bankruptcy, debt settlement also has its fair share of drawbacks, meaning this isn’t the right option for everyone.
If you do wish to pursue debt settlement and are eligible to do so, it’s in your best interests to work with an experienced attorney. The debt settlement lawyers at Capital Justice Attorneys, LLP can help you clearly understand all of your legal options and choose a debt relief strategy that suits your unique situation.
To learn more, contact us online or call (202) 465-0888 for a free phone consultation.
The Pros & Cons of Debt Settlement
When pursuing debt settlement, you have a number of options: you can work with a debt settlement company or you can work with an attorney. However, it is important to remember that may debt settlement companies seek to take advantage of debtors with high fees and hidden costs, which may include setup and monthly account fees. It is also important to note that certain debts, such as mortgage arrears, typically are not eligible for debt settlement.
All that being said, when done right, debt settlement can be very beneficial. Some of the benefits of debt settlement include:
- You can pay back less than the full amount you owe
- You do not have to make ongoing payments during the process
- You may find debt relief if you are not able to pay back the full amount you owe
Debt settlement should be considered a last resort, however, as it does carry many consequences. These include:
- Your credit will suffer (potentially for up to seven years)
- You may still owe late penalties and other fees
- You may still owe taxes on your debts
- The process can be lengthy, sometimes taking years to complete
Discuss Your Options with an Attorney at Our Firm
Ultimately, debt settlement can be a helpful solution for some individuals who simply are not able to pay back the full amount of unsecured debt (such as credit card debt) that they owe. Our Washington, D.C. debt settlement attorneys are highly skilled and knowledgeable in this area; we can help you determine if debt settlement is the right choice for you. Our attorneys can also negotiate with your creditors to reach an agreement on a lump sum payment, as well as a timeline for making this payment. Throughout the process, we can answer your questions and advocate tirelessly for you.