DUI Law Changes in KY
May 15, 2014
1st DUI Charge
May 21, 2014
Debt Negotiation v. Chapter 7 Bankruptcy In Kentucky
Debt negotiation is the process of contacting your creditors and making arrangements to pay less than the amount you owe on a debt. When a creditor accepts less than what you owe them, it’s called a settlement.
Alternative To Filing For Bankruptcy
A settlement is a common way to get out of debt and it’s a strategy that should be on your list before you consider filing for bankruptcy protection.
Creditors know that they will get little or nothing if you file for bankruptcy and are more willing to negotiate settlements as an alternative. Once an account is settled in full you no longer owe the creditor or collector.
What Kinds Of Debts Can Be Negotiated Down?
You can negotiate debts of any kind including credit cards, medical bills, and some loans.
You can’t normally negotiate settlements on secured loans, such as home or auto, unless you’re willing to loss your house or car.
It’s also fairly common for the IRS or other tax enforcement agencies to accept settlements, although they are not required to do so.
Student loans are generally the hardest to settle.
Debt Negotiation And Settlement Lawyer
The lawyers at Hurst & Hurst Law can help you make the decision between bankruptcy and debt negotiation and settlement. We can help you make an informed decision on what is best for you. Contact an attorney at Hurst & Hurst Law at (859) 209-2101.
1 Comment
[…] Debt settlement, also known as debt arbitration, debt negotiation or credit settlement, is an approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full. Creditors often accept reduced balances in a final payment and this is called full and final settlement but with debt settlement the reduced amount can be spread over an agreed term. […]