Knowing When to Hire a Bankruptcy Attorney and How They Can Help
Nothing is more challenging than running your own company. There are so many moving parts and potential things that can go wrong. Even with the very best plan of action in place, one event can cause a ripple effect that reverberates throughout the entire organization. That could be an unexpected increase in cost of production, a delayed shipment of product, or something much larger such as a pandemic. It’s hard to predict where these challenges may originate from, but in most cases, the effect is felt from a monetary standpoint on most businesses. When a company is under the strain of too much debt, that typically kicks off the hard discussion of what must be done for the company to survive.
If you are one of those business owners who have completely defaulted on their payments, you’re not alone. Countless companies across the country are dealing with the same thing. In some cases, they have been able to increase their business and dig themselves out of a financial hole. In other cases, their debt has only gotten larger over the past year with no hope of whittling it down. If you fall into the latter category, then hiring a debt settlement attorney may be the best course of action you can take.
What Is a Debt Settlement Attorney?
A debt settlement attorney specializes in negotiating with your creditors directly in an attempt to reduce the overall balance that you owe to them. What many people don’t know is that most credit card lenders and banking institutions will accept a fraction of what’s owed on an account if it means they can get the amount in a timely fashion. However, this isn’t something that’s willingly offered; it has to be negotiated by someone with experience in these matters. That’s what you’re hiring when you go with a debt settlement attorney. You’re getting someone who not only knows how to speak with creditors, but who also knows how to move the needle down on your overall debts.
Do I Qualify for Debt Settlement?
There are a few factors that must exist in order to qualify for debt settlement. Otherwise, your creditors won’t be inclined to settle with you.
You Must Be in Default on Your Payments
In the eyes of your creditors, this essentially tells them that they aren’t going to get any more money out of you. On the other hand, if you have been making regular payments for months, they’re not going to see any reason to settle because you’re not a non-pay risk yet. That’s why qualifier number one is being late. How late varies from creditor to creditor, however, most of them will start taking less than the full balance around three months after they stop receiving payments. This is where the negotiation skills of a debt settlement attorney come in handy.
You’ll Need to Have a Large Sum of Cash Available to Settle Your Debt
When your debt settlement attorney manages to negotiate your overall balance down to a percentage of what it originally was, there’s going to be one huge caveat on the arrangement – you will need to pay it all immediately. No creditor is going to replace a 100% promise to pay with a lower percentage promise to pay. That doesn’t work in their favor and you would be no less of a risk considering that you’re already late. Only a lump sum payment removes the risk factor from the situation, which is why you’ll need enough cash to pay off the negotiated debt. If you don’t pay it off, then the deal is null and void and you’ll go back to paying 100% of what you owed.
Debt Settlement Attorneys Are Good at What They Do, not Every Debt Will Be Able to Be Settled
In most cases, any unsecured debt such as credit cards can be settled. On the other hand, secured debt (mortgage, car loan, etc.) cannot be. That’s why it’s important to go over all of your debts with an experienced debt settlement attorney. They can tell you right away which debts are most likely to be settled, and which ones they won’t be able to help you with. This sets realistic expectations for all parties from the very start of the process.
Contact a Debt Settlement Attorney Today!
If you are currently struggling with payments with your creditors, then your first step should be to contact a debt settlement attorney. In most cases, they will schedule a free consultation with you so they can discuss the ins and outs of debt settlement as they pertain to you and your situation. A debt relief attorney is highly skilled in helping business owners reduce their overall debt obligations to a fraction of what they were, which could potentially save you thousands in the long run. Reach out to a debt settlement attorney today to get started.
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