Debt Negotiation Lawyer In Charlotte, NC
If you are considering hiring a debt negotiation lawyer or a debt settlement lawyer in Charlotte, you should consider three primary aspects of debt negotiation. First, you should know that every bank is different regarding their tolerance for negotiating a debt. Second, it is important to understand what will inspire any bank or lender to work with you when negotiating your debt. Lastly, you want to guarantee that when you do reach an agreement with the creditor, that they are bound by the terms.
Bank Tolerance For Negotiating A Debt
Some banks are notoriously more or less reasonable than others when it comes to negotiating a credit card debt outside of Bankruptcy. Additionally, those tolerances change over time depending upon the economy and each bank’s financial position. One frustrating element to negotiating a debt is this apparent inconsistency. Most recently, we settled a sizeable debt for a debt negotiation client. The bank forgave thousands of dollars in debt in exchange for a lump sum payment much smaller than the outstanding balance. Two months later, the same bank offered our client a new line of credit with favorable terms.
Inspiring A Bank To Negotiate Your Debt
It is important to understand that the bank may hold a different perspective regarding your debt than you do. For instance, you may be “cash poor” monthly, which is the reason you are asking the bank to work with you. However, the bank may look at your schedule of assets and determine you have $50,000 of equity in your home. Their position is that you should take out an equity line to pay your debt to them. And so, it goes back and forth.
Hiring a debt negotiation lawyer who is also a bankruptcy lawyer sends a specific message to the bank. Namely, it is implied that you are considering bankruptcy. In fact, many of our clients tell us to communicate to the creditor that if we are unable to work out favorable debt settlement terms, the client will move toward filing bankruptcy. This changes the tenor of the discussion with the creditor and often inspires a better debt settlement offer.
In any case, working with a third-party debt negotiation lawyer gives you leverage you simply do not have when you attempt to negotiate the debt on your own. Not only does your debt negotiation lawyer make standard arguments for you when it comes to your financial picture, but they also strategically position your creditors against one another. After all, all the creditors lose if a bankruptcy is filed.
Debt Settlement and Judgment Cancellation or Satisfaction
It is important to reach a favorable agreement with the lender. Your debt negotiation lawyer will also ensure that the lender signs off on language binding them to not only cancel the underlying debt. Additionally, if the creditor successfully filed a judgment against you, your debt negotiation lawyer will see that proper filings cancelling the judgment are put in place once you carry out your end of the agreement with the creditor.
The Debt Settlement Strategy
Debt settlement differs from debt consolidation. Many debt consolidation programs come with high fees, and you are not reducing the amount of debt you pay, you’re simply restructuring the debt. If you can’t make payments or miss payments, you are in default of the debt consolidation agreement and you can incur additional fees and essentially go back to square one.
While debt consolidation allows you to combine multiple debts into a single loan, debt settlement utilizes a very different strategy, When you settle debt, you’re effectively asking one or more of your creditors to accept less than what’s owed on your account. If you and your creditor(s) reach an agreement, then you would pay the settlement amount in a lump sum or a series of installments. What’s the Difference Between Debt Consolidation and Debt Settlement?
Our firm has helped hundreds of clients settle their debts. Often these are settled one by one at the client’s pace, with overall tremendous savings for the client.
Speak With A Charlotte Debt Negotiation Lawyer Today
Whether you are in Charlotte or any part of North or (most of) South Carolina, our firm can assist with debt negotiation and debt settlement. Call us at 704.749.7747 for a free consultation by phone, or click HERE To request a consultation. We look forward to helping you.