Reducing Credit Card and Other Types of Debt
At the law firm of Weintraub & Selth, APC, debt settlement and debt consolidation are two of the tools in our toolbox to help people burdened with credit card and other types of debt. Our lawyers provide debt negotiation services to individuals and businesses across the United States and in Los Angeles, Santa Monica, the San Fernando Valley, South Bay and surrounding communities in southern California.
What is Debt Consolidation?
If you owe debts to several creditors — for example, past-due balances on several credit cards or to trade creditors — debt consolidation refers to combining those debts into one manageable payment that is less than the total amount you owe. In debt consolidation, you make one monthly payment to one company, which in turn pays your creditors.
What is Debt Settlement?
If you can raise or borrow enough cash, you can negotiate with your creditors to accept a lump sum payment that is less than the total amount you owe.
Why Would a Creditor Accept Less Than I Owe?
Creditors need cash. They accept debt negotiation because we convince them they will not collect the entire balance and that they should take a discounted amount now, rather than waiting and taking their chances. The older the debt (in other words, the farther behind you are in payments) the more willing the creditor is likely to negotiate. If the debt has been sold to a third party, the third party may be even more willing to negotiate than the original creditor.
Creditors sometimes request a financial statement or other documents to determine your ability to pay the debt. We request that our clients contact us before submitting any documents to the bank or creditor. But even if you have done so, we can still help. Our lawyers understand legal ways to protect your assets and plan for debt negotiation.
What Types of Debt Can Be Negotiated?
- Credit card debt negotiation
- Lines of credit
- Hospital bills
- Unsecured bank loans
- Home mortgages
- Big-ticket consumer purchases
- Trade or business debt
- Other secured mortgages where the lender would rather negotiate than take the asset back
Do I need a lawyer to do debt negotiation?
For more information: To discuss credit card and other debt negotiation with one of our Los Angeles attorneys, call (310) 584-7702 ((866) 572-2423 toll free) or complete the contact form on this Web site. Se habla español.
