Debt settlement is a negotiation process where you and your creditors agree on a reduced amount to settle your outstanding debts. Typically, creditors will be more willing to negotiate your debts if you are willing to make a lump sum payment now.  Here are some common types of debts that may be eligible for settlement:

Credit card debt:  Credit card companies may be open to settling your outstanding balance for less than the full amount owed.

Medical bills:  Unpaid medical bills may be negotiated for a reduced settlement amount with healthcare providers.

Personal loans:  Unsecured personal loans may be eligible for settlement negotiations with the lending institution.

Unsecured personal lines of credit:  Similar to credit card debt, lines of credit not backed by collateral may be considered for debt settlement.

Repossession deficiencies:  If your car or other property has been repossessed, the remaining balance owed after the sale of the repossessed item might be negotiated with the lender.

Mechanics Liens:  If you had work done on your property the contractor is allowed to place a mechanics lien on it until you make full payment.  This keeps you from being able to sell your home without paying the debt, and in some instances the contractor could foreclose on the lien.  Many of these liens are legally deficient and can be removed in addition to negotiating the amount owed.    

It’s important to note that secured debts, such as mortgages and car loans, are typically not eligible for debt settlement since they are backed by collateral. Additionally, certain types of unsecured debts, like federal student loans, are generally not eligible for settlement through traditional means.

Before considering debt settlement, it’s crucial to assess your financial situation, explore other options (such as debt consolidation or credit counseling), and consult with a financial advisor or debt settlement professional to understand the potential consequences and implications for your credit score. Keep in mind that debt settlement can have negative effects on your credit, and there may be tax implications for the forgiven debt amount.  The U.S. Consumer Financial Protection Bureau can also provide you with free assistance and information that my help. 

Consult an Attorney:

Consulting an attorney about negotiating debt can be beneficial to obtain legal advice tailored to your specific situation.  An attorney can ensure that your rights are protected throughout the debt negotiation process. They can advise you on what creditors can and cannot do, helping you avoid any unfair or illegal practices.  An attorney can also communicate with creditors on your behalf. This can be especially helpful if you find dealing with creditors stressful or intimidating.  In addition an attorney can help you explore alternative options, such as bankruptcy or debt consolidation, and provide guidance on which strategy aligns best with your financial goals.

If you would like a free consultation with attorney David Stewart please call 405-633-1277, or email him at David@stewartlawok.com.  David works on a flat fee basis and is not paid until you get a signed settlement with your creditor.  Please note that no attorney-client relationship is established until you sign an Engagement Letter he will send you on request.