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Greg Prosmushkin

Debt Settlement Lawyer Philadelphia

If you are facing mounting credit card bills, debt settlement may be right for you. Debt Settlement is a process by which a debtor offers a lump sum to a creditor that is less that the amount owed, which is treated as full satisfaction of the entire debt. For example, if you owe ten thousand dollars to American Express, and you are behind several months, American Express may accept a money order for five thousand dollars to settle the entire amount. This is only an example for illustrative purposes.

It is best to engage in Debt Settlement if you have or plan to have some money set aside for settlement payments. When a creditor accepts a settlement deal, debtors are expected to come up with certified funds immediately. Therefore, it is best if you already have, or plan to have, funds available when settlement offers arrive.

Talk to Our Lawyers

It is important that you allow an attorney to assist you in this process. There are many pitfalls for debtors who engage in negotiation on their own. For example, if you reach a deal with a creditor and send them a check without first receiving a settlement offer from them, you have just paid part of your debt and you will continue to owe the remainder. As with all legal matters, details and technicalities can be very important. Place your trust in a lawyer who has negotiated debts for clients in the past.

Our lawyers also practice Bankruptcy Law, which is a useful tool in the negotiation process. Because we are able to advise our clients about their options in bankruptcy, and we can use that as leverage when we speak to creditors. Creditors know that they need to offer us a deal that is at least as good as what you would get in bankruptcy.

Be Forewarned

Debt Settlement should not be confused with debt consolidation, or debt management. Debt consolidation is a process by which you pay a monthly fee to a company or law firm which then pays minimum payments on your credit cards, while taking a fee for themselves. You should be wary of these firms. Oftentimes debtors are taken advantage of, and wind up in a worse financial position by engaging in debt consolidation. That is why many debt consolidation companies have received intense scrutiny and even legal action from District Attorneys’ offices throughout the United States. Never pay upfront fees for any type of debt negotiation. We will only take a fee if we settle at least one of your accounts.

Debt settlement is not the same as satisfying your debts in full. There are some negative credit consequences to settling your debt, and we will discuss those consequences prior to engaging negotiations. Any approach to your debts other than timely payments to your creditors will have some negative consequences to your credit. Our goal is to achieve the lowest damage to your credit within your budget, so you can get back on your feet and re-establish your credit going forward.

At The Law Offices of Greg Prosmushkin, P.C., you will deal with an attorney who will personally handle your accounts. You will not pay any upfront fees, and no fees will be due until at least one of your accounts has been settled. We do not force deals on you. Additionally, we are able to advise you about other financial management strategies to help you plan your financial future. Consultations are always free, so don’t delay. Let us help you solve your debt problems, so you can get back to living your life.

This content was written on behalf of Greg Prosmushkin.