Tampa Debt Settlement Attorney
How Do Debt Settlement Companies Typically Work?
Typically, when a debtor contracts with a debt settlement company, the company will negotiate a lower amount for the debtor to pay on his credit cards, loans or other unsecured debts. Most debt settlement companies will ask the debtor to pay to the company, a monthly payment. The debt settlement company will take monies from this monthly payment to satisfy its fees, with the remainder available for payments to creditors. Once sufficient funds are acquired by the debt settlement company, the company theoretically will then pay the creditor in a lump sum settlement.
The problem with this methodology is that the monthly payment is usually not significant enough to acquire sufficient funds to settle the debt within the time generally needed to obtain a settlement.
Jay Weller and Weller Legal Group has been settling debts on behalf of its clients since 1993, over two decades. The optimum time to settle a debt is when the debtor is approximately eight months behind on his unsecured debts. The time period can change depending on the creditor, but eight months is a good basic period for successful settlements. Many debt settlement companies will require payments over much longer periods than eight months. Usually, by the time the debt settlement company obtains sufficient funds to settle the debt, the debt is so seriously delinquent that the account has been referred to an attorney for litigation. A litigating attorney is usually not amenable to a settlement, as his function is to consummate the lawsuit, and not to negotiate with a debtor.
The other problem with many debt settlement companies is that not only is their methodology flawed, but many of these companies are fraudulent. There have been many instances of debt settlement companies that do not deliver what they promise, and further refuse to return any funds that are paid by the debtors. Many of these companies originate from California.
A proper debt settlement is through a one –time, lump-sum payment. If the debtor does not have the funds to make such a payment, Mr. Weller will usually counsel against attempting a debt settlement. If the debtor is not able to settle his debts through such a payment, our office has many other programs that might benefit, such as Credit Counseling, Credit Repair, Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, and other programs.
Weller Legal Group represents many Clients in Settlements of Debt. Our Tampa Settlement Attorney can Settle almost any type of Debt, including Credit Cards, Medical Bills, Taxes owed to the Internal Revenue Service, and other varieties of Debt. The Settlement usually involves a one-time payment to the Creditor, along with a concession from the Creditor that such Debt is fully satisfied, and reflected accordingly on his or her Credit Report.
A Loan Modification may be beneficial . Lowering the homeowner’s monthly mortgage payment may liberate funds to pay credit cards or other loans. There are many ways to deal with the sometime overwhelming crush of debt. Please contact Mr. Weller today for a free and friendly consultation.