Q: What if a client doesn't have enough money to payoff all their creditors?

A:If a client does not have all the money to pay all of their debts at one time, we will work with them to set up a plan for them to save enough money to start negotiating with their creditors. We will negotiate with each of their creditors as they save sufficient money to pay the estimated payoff. We usually request that our clients try to save at least 60% of the balance due, just in case the creditor is difficult. Additionally, with some creditors we are able to set up payment plans on negotiated payoffs.

Q: What debts should be settled first?

A:Usually the best debts to settle first are the ones with higher interest rates. However, if you are behind on any payments, consider eliminating this debt first, as this will eliminate a delinquency on your credit report.

Q: What are other issues related to debt negotiation and settlement?

A:During the debt negotiation process our attorneys negotiate to have our client's accounts either deleted or corrected after payment. A deleted collection account no longer affects the client's credit score. A corrected collection account that reflects "paid with a zero balance", can improve a client's credit score.

Unfortunately, we cannot guarantee our client's that their collection account will be deleted because some creditors refuse to delete. In this situations, our attorneys will request correction be entered on the collection account.

Some creditors may report your settlement to the major credit bureaus. However, when trying to get out of debt, and protect your credit as much as possible, debt settlement can be an economical option for you. Debt negotiation and settlement can affect your credit rating, at least temporarily, so don't attempt debt negotiation unless you are willing to accept this possibility.