Debt settlement of credit card debt and other creditor claims can be an alternative to bankruptcy. It is common to be able to settle debt for 70% of the amount; at times a debt settlement can obtained for 50% of the debt owed; sometimes, even a better deal can be negotiated. This depends upon many circumstances that a debt settlement attorney in Philadelphia can determine.
There are original creditors such as the credit card companies and banks; there are third party collectors such as the national companies like ARS National Services, Portfolio Recovery, Midland Atlantic and LTD Financial Services; there are law firms that specifically perform debt settlement and collection work like Tabas & Rosen, Burton Neil & Associates and Weltman, Weinberg & Reis. Firms such as Phelan, Hallinan, LLP, Shapiro & Kreisman and KLM Law Firm are most often specific to mortgage foreclosure.
Many times people hire debt settlement companies who advertise on late night TV or on the radio. The advertisements are very attractive both in their presentation and also offering people the hope of debt relief, payment of nominal amounts of money to settle the debt, and avoiding the filing and stigma of bankruptcy. They will tell a person who is current but chocking on their payments to stop paying and in several months, the credit cards will very willingly take substantially less. During this “waiting time” you sign a contract with these debt settlement companies and begin to send them money to be held in ‘your account’. These companies are very often located in states far away from Philadelphia and our surrounding counties. I have had clients come to me who have paid substantial sums of money in this fashion only later to be told that very little or nothing can be done for them; that the debt settlement company has used all of the money and there is nothing left for them to do.
There are alternatives to settling you debt. Debt settlement may work but you should have all the facts before committing to that path. Debt settlement can often be more expensive and time-consuming than a chapter 7 but there are people who prefer to avoid filing a bankruptcy. Our law office represents both types of individuals and can approach debt settlement, negotiations, litigation and bankruptcy from a variety of angles. There is no one set way to handle or eliminate debt.
If you are interested in exploring your debt settlement options, time-frame and cost please contact us for an appointment. 215-822-2728.