Debt Settlement Help

Debt settlement is a method that is used to reduce an individual’s debt where both the creditor and debtor agree on a reduced amount to be paid that will be considered as payment in full.  Often, debt settlement is used by consumers to reduce credit card debt.

Avoid the Scams of Debt Settlement Companies

Debt SettlementIn the event that you are considering debt settlement as an appropriate option for you, the next decision you have to make is whether or not you will attempt to negotiate the debt settlement yourself or if you will hire a professional to assist you in this process.  Unfortunately, the debt settlement industry is full of businesses who engage in scams or make promises to the debtor that are routinely unfulfilled.

According to the National Association of Bankruptcy Attorneys, only 1% of consumers who participate in a debt settlement program actually end up debt-free in the promised period of time.  Debt consolidation companies often promise more than they can deliver.  Unfortunately, individuals who have a lot of debt are vulnerable and, as a result, while trying to eliminate their debt they may be charged outrageous fees.  There are currently over 1,000 debt settlement companies operating in the United States.  Debt settlement companies are regulated by state Attorney Generals and the Federal Trade Commission, however they are rarely prosecuted for any wrongdoing.

This is not to say that debt settlement companies are bad as a whole. In fact, companies that fully disclose their terms, hold off charging company fees until settlements are achieved, and do not make “too good be true” guarantees may be a helpful alternative to bankruptcy.

Before choosing to enroll with a debt settlement company, research them thoroughly with your New Jersey Office of Consumer Protection and the State of New Jersey’s Office of the Attorney General. This is a way to verify if any complaints have been filed on a specific company, although there are many other sites which you can check for customer complaints. You should also verify with the Attorney General whether or not the company you are considering is licensed to work in New Jersey.

Get Help Negotiating Credit Card Debt from a Bankruptcy Attorney

If you are facing financial difficulty and would like to explore the option of credit card debt negotiation, you should seek the help of a bankruptcy lawyer rather than using a potentially fraudulent company.  The Ocean County bankruptcy lawyers at Villani & DeLuca have been practicing bankruptcy law for many years and will be able to guide you through the debt negotiation process and assist you in determining if this is the right option for you.

At Villani & DeLuca, we understand how easy it is to fall behind on your credit card payments.  Our attorneys have the experience in negotiating with credit card companies and may be able to develop a more reasonable payment plan for you.  We will also be able to review with you all of your potential options as it relates to your debt situation.  Those options include, but are not limited to, reorganizing your unsecured debt, reviewing with you whether or not bankruptcy filing is a more viable alternative, and negotiating on your behalf with credit card companies to develop a more reasonable payment plan.

We will also attempt to arrange a work out arrangement, which is a mutual arrangement between the debtor and the lender that allows the loan or amount owed to be paid back under a modified schedule.  Typically an individual who enters a work out arrangements is looking to avoid either foreclosure and/or bankruptcy.

Do You Think Debt Negotiation is Right for You?

The bankruptcy lawyers at Villani & DeLuca will personally speak with any individual who contacts the office.  We also offer a free consultation, during which we will discuss with you all of the options that are available in your specific situation.  We will also explain the bankruptcy process in New Jersey and answer any and all questions that you may have.  Schedule your free, no obligation consolation today by calling (732) 965-3390.