Wichita Debt Settlement Attorney
What Is Debt Settlement?
Debt settlement is an action where the creditor and debtor agree to a reduction in the amount of debt. The debtor benefits by reducing their debt while avoiding the restrictions and stigma of bankruptcy.
The creditor benefits because he does get some money instead of the nothing he would get if the debtor is forced into bankruptcy. It is advisable to work with a lawyer when negotiating a debt settlement to ensure that you are negotiating from a position of strength and that the ultimate agreement is binding.
What Qualifies for Debt Settlement?
If you are considering debt settlement in Kansas, contact a lawyer at Kansas Bankruptcy Center. Credit card debt and other unsecured debt are usually made to order for debt settlement.
Debt secured by property such as a car or house is not because the creditor can just take property if he does not get paid in full. Student loans do not lend themselves to debt settlement either because, though unsecured, they are not dischargeable in bankruptcy depriving the debtor of bargaining power.
When Is It Beneficial To Settle Your Debt?
Debt settlement is when a creditor has agreed to accept less than the amount you owe and close out your debt. Debt settlement is the beneficial approach when you are behind on payments and possibly moved to collections accounts and there is no hope to pay your existing balance. Most commonly, debt settlement is used for credit card amounts.
How does debt settlement work?
The debtor puts together a lump sum either by saving up the money or selling some assets. Then he or through his attorney or agent contacts the creditor and offers to give the creditor the lump sum if the creditor will give him a sizable reduction in the amount of the debt, sometimes as much as 50% depending on the relative bargaining power of the parties.
Turn to a Kansas Debt Settlement Lawyer
At the Kansas Bankruptcy Center, we can provide solutions to debt and are skilled in handling debt settlement. We serve the entire state of Kansas and are willing to help you over the phone without you having to come to our office. We would be pleased to talk to you.