Do bankruptcy attorneys negotiate credit card debt settlements?
If your debt is mostly credit card debt, you may be able to negotiate a debt settlement with your creditor. This is much more likely to succeed than bankruptcy, because creditors are often more willing to accept a lower payment than a bankruptcy filing would bring. However, there are many factors to consider before negotiating a debt settlement with your creditor.
How much does a bankruptcy attorney charge for negotiating credit card debt settlements?
Debt settlements have many benefits, including reducing interest rates and reducing the amount of principal owed. However, there are some risks to consider before signing up for one. In addition to degrading your credit score, these settlements are subject to IRS taxation because the forgiven debt will be reported as regular income to the IRS.
If you're seriously behind on your payments and are unable to pay the full amount, a debt settlement may be your best option. However, many creditors won't negotiate with you until you've fallen so far behind that they're insistent on receiving 80% or more of what you owe. If this happens, your original creditor may have already turned the debt over to a debt collector. These companies make their money by collecting past due debts.
If you need an Bankruptcy Lawyer, please call this law firm for a free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
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