Huang Law LLC assists clients in settlement negotiations with creditors. Debt settlement is an approach to debt reduction in which the debtor and creditor agree on a reduced balance. In general, debt settlement is a viable solution only if you can pay a lump sum to settle the debt.
We believe debt settlement should be approached with caution because unlike bankruptcy, there is no guarantee that we will be able to settle your debt. In fact, no one can guarantee a settlement with a credit card company, collection agency or with a plaintiff’s firm representing a creditor.
For the debtor, however, debt settlement can sometimes make sense where the debtor does not qualify for a Chapter 7 bankruptcy, or some reasons the debtor does not want to file a bankruptcy. You should consult with a Wilmington Delaware debt settlement lawyer to discuss these options.
It is important to remember that debt settlement generally requires missing months of payments in order for the creditors to negotiate the debt, which will negatively impact your credit score. Additionally, the balance of the debt continues to grow with the compounding interest (usually at the “default rate” which in many cases is at 25% APR or more) and that you may end up getting sued.
Before you sign up with a debt settlement company, please check the following resources.
Huang Law LLC, is a Wilmington Delaware debt settlement law firm that believe each client’s situation needs to be carefully considered and all options presented and explained so that the client has the information and knowledge to make the best decision. Please call us for a consultation to go over your individual situation and we will advise you of the options available to you including bankruptcy and debt negotiation. Please call us (302) 478-2900.