Most of the time debt, even if you owe it, can be settled for a reduced amount. Generally, it is well worth having an experienced attorney handle the negotiations for you–BEFORE you contact the creditor and disclose a lot of information that can make it more difficult to settle credit card debt. For example, disclosing where you work, how much you make, where you live, or where you bank. Even the phone call discloses that you are alive and willing to resolve the alleged debt–information that is valuable to a debt collector.
There are many factors that go into negotiating debt or beginning credit repair–factors most debt settlement programs fail to consider. These include the defenses you have to the debt–many of which a debt consolidation or credit counseling company would not even know. Who is the collector, how old is the debt, has the creditor or collector complied with Iowa legal requirements, how much is owed and what stage of the collection process is the debt in? These are all important factors in determining how much a debt will settle for, or whether the debt should be paid at all. In most cases, the settlement itself needs to be done in a way you are not left with a judgment on your credit report, and someone has at least thought about tax consequences of settling for a reduced amount (The Johnson Law Firm does not do tax work, but can assist you in questions and issues to raise with your tax advisor and can do the settlement in a way that at least gives you a shot at not incurring tax liability–no promises).
Free settlement of debt consultation
Generally, we offer a fee structure that makes it possible for a client to settle the debt and end up with a result that costs the client less than just paying the deb even with our fees. While there are no guarantees, you should at least contact the Johnson Law Firm for a free consultation to get some information as to your legal rights as applied to your personal situation.
It is usually NOT a good idea to use a debt elimination company, debt settlement company, or, in most cases, even a credit counselor. Consumers are lured with promises by a debt settlement company or a debt consolidation company with claims they can settle or consolidate credit card debt, but the consumer routinely end up worse off. Debt settlement companies frequently take a debtor’s money and disappear or let the person get sued without providing a a defense to judgments and garnishments. Many credit counselors are actually paid by lenders, and they frequently take a very different approach to help you get out of debt than you get with the Johnson Law Firm.