Debt Negotiations & Settlements Brooklyn

• Bankruptcy Solutions
• Foreclosure Solutions
• Modification & Negotiation
• Credit Card Debt Relief

Debt Negotiation Attorneys and Debt Settlement Lawyers – Suffolk & Nassau Counties, Brooklyn 

Most debts can be aggressively settled by our law firm, since settlements are usually mutually beneficial, especially when creditors are faced with the alternatives of a negotiated resolution or a bankruptcy and/or a litigation

• The Need for Debt Negotiations and Settlements
• Our Method of Negotiating with Creditors
• Threat or Alternative of Bankruptcy and/or Litigation to Obtain Debt Settlements
• When Negotiations Would be Preferable to Bankruptcy
• When Bankruptcy is Preferable to Negotiations
• When Negotiations Would be Preferable to Litigation
• How Our Office Can Help You Negotiate Debt Settlements 
• The Differences Between Our Law Office Negotiating Your Debt and Debt Consolidation or Debt Reduction Companies
• How Our Law Office Can Help You With Debt Relief

Our Attorneys Engage in Debt Relief Through Creditor Negotiations

The Need for Debt Negotiations and Settlements –

Clients regularly hire the Law Office of Ronald D. Weiss, P.C. to represent them in negotiations with banks, mortgage holders, credit card issuers, auto financing providers, landlords, tax authorities, and other creditors. Our firm will significantly enhance the client’s ability to negotiate and seek settlements with their creditors due to: a) the firm’s extensive experience with creditor negotiations; b) the firm’s particular expertise with matters pertaining to debtor-creditor relations; and c) the firm’s genuine ability to threaten alternatives of bankruptcy and/or litigation. Our company will counsel its customers as How much can be worked out through negotiation and how much their creditors will take an offer? Our company will keep the client updated on the status of these cases, contact with the creditors, and continuing attempting to reach a resolution that benefits the customer. Following a settlement, our company will sign a formal settlement agreement with the creditor and demand the preparation of additional documentation attesting to the settlement. For our clients, we often negotiate and settle the following debts:

a) Credit Cards – Unsecured personal loans and credit card debt are typically constants;

b) Tax Debt – owed money to the New York State Department of Taxation and Finance (“NYS”) as well as the Internal Revenue Service (“IRS”);

c) Student Loans – Negotiated settlements are possible for student loans, both private and government supported;

d) Business Debt – Regarding persons wishing to close their firms or restructure them:

e) Medical Debt – For those without health insurance, whose policy has terminated, or whose insurance did not (completely) pay for medical care;

f) Credit Repair – to correct unfavorable information that may have been taken out of context or is erroneous or misleading on the credit report;

g) Non-retention Options – Non-retention options are alternatives for distressed real estate when the client is searching for solutions that will benefit the debtor in a measured way but does not want to or cannot rescue the property. Retention alternatives, which are covered in the section before this one on mortgage modifications and other retention options, are the reverse of non-retention options. Retention options are alternatives for distressed real estate in which the client want to avoid foreclosure and may be able to do so (apart from modification, see the section on Retention above).Friendly short sales, payoffs, reinstatement, forbearance, payment plans, etc. are examples of options. Non-retention options, or the best ways to avoid holding onto the property in order to obtain an advantage or escape liability, are the topic of this section. The following non-retention options are covered in this section:

(i) Third Party Short Sales;

(ii) Deed in Lieu Agreements;

(iii) Cash for Keys Agreements; and

(iv) Consent to Judgment Agreements.

Since bankruptcy solutions are typically thorough, certain, and uniform in removing, lowering, or reorganizing debt, the majority of customers who come to our office with credit card and other unsecured debt (personal loans, medical bills, and other miscellaneous debt) are initially interested in filing for bankruptcy. But while bankruptcy options are a powerful tool for debt relief, negotiated debt settlements are also very important. Frequently, our clients have too much income to be eligible to file for Chapter 7 bankruptcy, or they may have too much equity in their assets to see filing for bankruptcy as a viable option for adequately resolving their debt. Some loans carry a significant danger of having their discharge in a bankruptcy case or, in accordance with the law, are not dischargeable at all. In other cases, the client may be better off negotiating a lesser payment for the debt that they can manage to pay rather than filing for bankruptcy because the debt is not sufficiently overwhelming to warrant that kind of action. Our approach to negotiations and settlements comprises the following: 1) high-level negotiators seeking “smart solutions” pursue customized and optimized settlements for each individual debt and creditor; 2) simultaneously approaching the creditors with lump sum, installment, or hybrid proposed settlements that eliminate interest and seek a significant reduction of principal; 3) using bankruptcy and litigation as real alternatives in the event that the desired settlements are not forthcoming and as threats to leverage a better deal; and collaborating with our clients to ensure their agreement with the terms of the settlements and the amounts we are willing to provide. This is a practical choice and a crucial debt relief tool because of our well-coordinated and sophisticated approach to debt discussions and settlements.

Our Method of Negotiating with Creditors –

Due to the fact that our clients frequently approach us with many or even multiple personal debts that need to be negotiated, we create individual files for each creditor, listing all the relevant information such as payment history, negotiation history, contact details, and loan details. Then, in an effort to reach a mutually agreeable settlement, we methodically write and call every card. We can most effectively monitor our settlement efforts’ progress and inform our clients of it by using this way. Our expertise in bankruptcy law and litigation defense is used to alert creditors that, in the event that a mutually agreeable settlement cannot be achieved, our clients may file for bankruptcy and/or pursue legal action.

There may be creditor discussions, in which case our knowledge and the power of additional legal options come in handy. Due to their expertise and history in law, our debt negotiators look for the best possible outcome for each individual debt. In credit card discussions, The Law Office of Ronald D. Weiss, P.C. frequently represents clients in Brooklyn and New York.

1. Client Information and Documentation: During a “intake” meeting, during which our paralegals fill out forms requesting information and copy all relevant documentation, we begin by attempting to obtain as much information and documentation as we can from our clients. We value our clients’ perspectives since they provide us with valuable information about their past debt situations, payment difficulties, and negotiation experiences. When evaluating the debt status, statements, invoices, letters, emails, collection notifications, litigation documents, and interactions are all crucial. Additional crucial informational components include learning about the client’s and the household’s total income, expenses, and Budget and debt scenarios, including those involving debts the client is unable or unwilling to negotiate, in order to determine the kinds of settlements the client can afford and the best ways to organize them. The most crucial factor is the means by which the client can contribute to a settlement, which may take various forms, such as installment payments, a lump sum settlement, or a combination of the two.

2. Searches: After that, we keep obtaining records and information from other asset, debt, and legal searches, which provide us with further details about the client’s circumstances. A credit report that details the client’s debt and payment history is the first thing we look at. In order to determine judgment, tax, and mortgage liens, we may do a lien search on any real estate. This search can be carried out at many levels. To evaluate previous or ongoing court activity, further searches include judgment, lawsuit, and bankruptcy searches.

3. Contact with the Creditor: The next step in debt negotiation is to ascertain which legal representative of the creditor should be contacted. Often, when a debt is owed, the customer will get correspondence from the original creditor, a potential buyer of the debt, the debt’s servicer, a collection agency, and/or legal counsel. Since the original creditor may no longer be the owner of the debt and the attorney may not always have the capacity to negotiate, we must ascertain who has the right to negotiate the debt. We draft a letter once we’ve decided who should discuss the debt. to the creditor, outlining our client’s difficulties and the reasons why a negotiated settlement would be advantageous to all parties. The letter’s objective is to demonstrate to the creditor that, despite the fact that the offer we are making reduces the entire amount, it is still the best option for them given our client’s financial difficulties and their options for legal action, including bankruptcy and litigation defense.

4. Multiple Offers: Once negotiations begin, they may involve multiple rounds of offers and counteroffers. We present the creditor with our desired amount and the lowest number we can reasonably offer during a serious negotiation, together with the length of the payment term and the amount of monthly payments. If a creditor is interested, it will counter, and after a few rounds, we might reach the best settlement possible with that creditor. When the creditor refuses to engage in talks to reach a fair settlement, we might put that creditor’s case on hold and focus on creditors who are more willing to have fruitful discussions. Creditors’ negotiation positions are sometimes guided by internal policies, and their designated negotiator occasionally sets the maximum amount they will accept. Thus, in cases where our initial offers are met with an unacceptable settlement, holding off and returning later may facilitate a better settlement.

The settlement agreement’s benefit could be lost for the client.However, if the customer follows the terms of the settlement agreement, the debt will finally be settled permanently at the conclusion of the agreement’s duration (provided the client does not pass early).

6. Satisfaction of Debt or Judgment, and/or Release of Lien – In the event that a judgment exists, it is filed; in the case of real estate, liens are released through the execution and filing of a release of liens form.

Threat or Alternative of Bankruptcy and/or Litigation to Obtain a Debt Settlement

 Our law firm has a distinct advantage when it comes to debt negotiation because we can use our other services, such as bankruptcy and litigation, as leverage to get better deals when we inform creditors that, should a reasonable resolution not be reached, our clients may have to turn to bankruptcy or litigation. We would demonstrate how these alternatives are possible courses of action that we could take, but with more severe repercussions for all involved. These bankruptcy and litigation possibilities are not merely threats, they become serious choices where the desired settlements are not forthcoming

1. Bankruptcy As a Threat and/or Alternative –

A creditor may perceive a negotiated settlement as more beneficial if they are aware that a customer may file for Chapter 7 bankruptcy, which will remove most or all of their debt—typically without making any payments.

which officially discharges their obligation and closes the case. In most cases, this happens in around three and a half months if the case is straightforward and doesn’t involve complicated problems that take longer to handle.

In cases where a client’s income is too high or their assets contain too much unprotected equity to qualify for Chapter 7, Chapter 13 plans allow the debt to be spread out over sixty months with no interest on the majority of the debt and monthly installments to be paid over that time. In cases where the client’s asset or income status indicates excess equity or income, chapter

Therefore, the threat of bankruptcy is real and could aid in reaching a negotiated settlement for credit card debt and/or other unsecured debt because our law firm files bankruptcy cases on a regular basis. Bankruptcy is an option that can be explored if the threat of bankruptcy is ineffective in obtaining a fair negotiated settlement. Bankruptcy is typically a very effective means of paying off and/or restructuring debt.

2. Litigation as a Threat and/or Alternative  –

A creditor will perceive a negotiated settlement as more favorable due to the possibility of litigation defense, which gives a defendant the ability to contest an alleged credit card debt and assert their legal rights through the court system’s legal process.

Since most debtors accept their obligations under the assumption that they cannot be contested, creditors collecting on credit card debt and other unsecured debt typically do not anticipate a litigation defense. The purpose of credit card debt litigation defense is to deter the creditor from trying to collect the debt by threatening expensive litigation costs and delay. Therefore, a suggested negotiated settlement will appear favorable because it would seem to be the better value alternative for the creditor under the prospect of legal defense on a credit card or other unsecured debt.

Potentially contentious topics typically involve notice, attempts at collection, proof of nonpayment or late payments, the amount of penalties, late fees, or interest assessed, and/or the absence of a signed credit card agreement. In the event that the client must take legal action to recover credit card debt or any other unsecured debt, the firm can assist the client by defending their position and making counterclaims in response to the summons and complaint that start the legal process. Within 20 to 30 days following the summons and complaint’s service, this must be completed. One of the many documents typically filed as part of a litigation defense is this type of answer. Additional papers could be a move to dismiss, if appropriate, and a in response to a summary judgment request. The client can raise any defenses they may have against the way the lawsuit was started by defending the legal action. A litigation defense also extends the case’s duration and notifies the client and our firm of its status. A client may occasionally have a compelling defense, which could lead to the dismissal of a lawsuit. Our agency has put forth defenses that address a variety of concerns, including poor service, the presence and relevance of the purported loan documents, the stated loan terms’ clarity, the reasonableness of the loan amount, and the amount of interest and fees the credit card charges. Our office would frequently make discovery demands in an effort to the purported debt and to support any possible defenses. The customer can raise any defenses they may have regarding the way the collection action was started and/or the way the credit card debt was extended by defending the collection activities by credit cards. Creditors would typically rather resolve these disputes than focus on them because they are not accustomed to going to court over them.

Consequently, the danger of litigation is real because our law office often handles litigation defense; this could facilitate the negotiation of a settlement for credit card debt and/or other unsecured debt. Litigation can also be pursued as a backup plan if the threat of litigation is ineffective in obtaining a fair negotiated settlement. Litigation is typically extremely effective in defending against various collection litigation.

When Negotiations Would be Preferable to Bankruptcy

1. Too Much Income to File Chapter 7 Bankruptcy– 

are for sums that the authors of the means testing legislation considered necessary, including However, it might not be a good idea to force a client into a Chapter 7 case if their income is more than $10,000 to $15,000 above the median income level for their household size in New York State.

Before filing a Chapter 7 case, the income issue must be carefully examined to see if the client may be eligible to petition for Chapter 7 relief. This is done by comparing the client’s household income to their family size and their essential authorized expenses. Due to the fact that the typical household income on

Chapter 13, which has different filing limits from Chapter 7, allows the client to pursue relief even in cases where the gross household income fails the means test or the budget test. The negotiation option becomes a viable solution that might work for the client’s position and should be explored when neither Chapter 7 nor Chapter 13 seem feasible or desirable for the client because of excess income.

2. Too Much Equity In Unprotected Assets to File Chapter 7 Bankruptcy – 

When a client’s assets have too much unprotected equity to file under Chapter 7 bankruptcy, negotiations are taken into consideration. The Chapter 7 trustee may gather unprotected equity in assets and sell them to generate funds to pay creditors. The equity in the client’s property may be safeguarded by secured loan liens and exemptions under state and federal legislation. The client must appear at a creditors’ hearing during the Chapter 7 case in order to be questioned by a Chapter 7 trustee, whose job it is to ascertain whether any possible equity assets could be liquidated to pay off the claims of creditors. Due to the lack of assets to cover creditors’ claims, the majority of Chapter 7 cases are referred to as “no asset” cases. In actuality, the majority of Chapter 7 debtors do have assets, but because their assets aren’t thought to have much equity, their cases are nevertheless regarded as “no asset” cases. Liens for secured debt, such as mortgages and auto loans, and legislative exclusions that preserve a certain amount of equity are what reduce the potential “equity” in specific assets.  Exemptions are specific asset values that, according to the law, are off-limits to creditors. Currently, there are two exemption schemes available in New York State: those provided by federal law and those supplied by state legislation. The “homestead exemption,” which protects a client’s residence for $170,825.00 per person who owns and really resides in the property, is a generous feature of the New York State exemption structure. A “wildcard” exemption of roughly $13,400 per debtor is provided by the federal exemption structure, which is different and more liberal in providing better protection for personal property. This exemption can be utilized to safeguard any type of personal property, including tax returns. automobiles and bank accounts.As long as they maintain timely payments on these assets and do not possess excessive unprotected equity, the majority of clients retain all of their property, including their cars, residences, and personal belongings. Negotiations are the preferred method of resolving the client’s debt when the amount of unprotected equity in the client’s property would make a Chapter 7 case too dangerous and a Chapter 13 lawsuit too costly.

3. Problem with “Avoidable Transfers” The problem of “avoidable transfers” is closely associated with the question of possible equity in assets. These may take the form of “preferences,” or payments to creditors paid to third-party creditors ninety days before the bankruptcy case began, or to “insiders,” or the debtor’s close relatives or acquaintances, a year before the bankruptcy filing. These can also be “fraudulent transfers,” which are transfers to family members or close friends of the debtor for less than fair value six years before a bankruptcy case. Avoidable transfers are not always evident, and when what seems like an innocent A transaction may be claimed to be an avoidable transfer under bankruptcy law. Potential avoidable transfers may make a Chapter 7 case too hazardous and a Chapter 13 case too expensive, similar to potential, unprotected equity in the client’s assets. This could lead to discussions being the preferred course of action to settle the client’s debt.

4. Too little debt in relation to the total amount owed and the number of creditors to qualify for Chapter 7 or Chapter 13 bankruptcySometimes a client can successfully file under Chapter 7 or Chapter 13 with a low percentage plan, but they don’t want to because they have a little amount of debt, few creditors, or they are worried about their credit report. Though the majority of our clients are already experiencing financial hardship, which shows up on their credit reports, it might be true that entries indicating settlements and partial payments are better than Chapter 7, which “discharges” (eliminates) the debt. If a settlement occurs and a creditor’s entry is changed, it can state “Settled Outside of Terms” indicates that the customer is making payments in accordance with a contract that differs from or is less than the credit card’s initial terms of payment. Negotiated agreements or settlements only improve a client’s credit rating if they can easily and promptly fulfill their payment obligations. In addition to being less time-consuming and more practical, filing for bankruptcy may be preferable for the client’s credit report if they are unable to make the settlement payment on schedule. Therefore, it’s crucial that a client confirms it has the financial wherewithal to uphold a deal before initiating efforts to acquire a negotiated settlement.

protest. A procedurally formatted adversary proceeding, or contested litigation within the bankruptcy that may lead to a trial or other contested litigation within the bankruptcy case, would be where such an objection would be made.

Lastly, there may be a problem with abusive debt accumulation before declaring bankruptcy. the large-scale cash advances and/or balance transfers that occur just before filing.

A Chapter 13 or 11 reorganization may handle the debt in a way where there is less likelihood of an objection given that the creditors are receiving a partial payment. In such cases, where the debt is not dischargeable or may be objected to, Chapter 7 needs to be carefully evaluated for the potential risks vs. advantages in filing. Nonetheless, rather than running the danger of a discharge objection, it could be better if the client does have the financial means to enter into settlements.

When Bankruptcy is Preferable to a Negotiated Debt Settlement

Conversely, under certain circumstances, bankruptcy could be a better option than negotiating when the client lacks the necessary financial means or skills to negotiate as follows:

1. Inability to Negotiate a Settlement: We must give the creditor a settlement, which may be made in installments or as a lump payment. It is better to file for bankruptcy if a client has little to no ability to settle.

2. Preference for Bankruptcy’s Swift Debt Elimination Even in situations where the client may be able to negotiate some or all of their debt, Chapter 7 is frequently a better option because the discharge under Chapter 7 is obtained in a matter of months, and the majority of Chapter 7 cases are regarded as “no asset” cases, which means that the client would not make any payments to the trustee or creditors in order to have all of their debt discharged. Compared to a method that calls for payments over time as part of negotiated settlements to numerous creditors, this is far quicker, less expensive, and more effective.

3. A Negotiation May Result in Undesired Taxes – Outside of bankruptcy, the act of forgiving debt is regarded as taxable as the savings in a negotiated deal are regarded as “income.” In the event that a client pays a sizable debt, they can incur significant taxes. Since debt elimination in bankruptcy is not taxable, this is not a problem. However, there are a few exceptions to the cancellation of debt taxes that apply even outside of bankruptcy. These are as follows: A person who was insolvent at the time may be eligible for the following benefits: a) debt cancellation restricted to the amount of the insolvency; b) debt cancellation as a gift; and c) interest that would have been deductible is forgiven.

4. The Debts Are Fragmented, Hard to Reach/Ascertain, and/or Hard to Settle — Bankruptcy is a preferable alternative in many cases where negotiated settlements are challenging. Debt, even ones you were unaware of, would be discharged in a Chapter 7 case. Fragmented debts are challenging to negotiate but simple to discharge in bankruptcy.

When Negotiations Would be Preferable to Litigation

When there aren’t many possible points of contention and the debt isn’t extremely large, like with credit cards, negotiations are preferred. At least initially, litigation may be preferable if the debts are more distinctive, significantly greater, and highly contested than other options. But in the majority of credit card cases, litigation is a dangerous tactic that is mostly employed to buy time and leverage. Thus, where: bargaining is better than lawsuit

1. Undisputed Debt, Not Given to Litigation Defense – If the debt is contested or was acquired in a way that violates procedural laws, litigation may be a good choice, provided that the client is aware of the risks, expenses, and potential constraints involved. However, bargaining takes precedence if the debt is uncontested, there is little to dispute, and filing for bankruptcy is either impractical or impossible. 

2.Litigation can be costly, drawn-out, and laborious. Even in cases where there may be a case to be tried, litigation is not always the best course of action, thus it is typically avoided in situations where there are fewer debts, more creditors, and tighter financial circumstances for the client. Where there is a concentrated, highly contested debt, litigation is effective. Litigation should only be pursued when the benefits are clear because it can be costly, time-consuming, and tedious.

3. Options as a Negotiating Advantage: Even though bankruptcy and/or litigation may not be practical options in some circumstances, it is helpful to keep these options on the table as a potential threat during the negotiations to let the creditor know that, should a reasonable negotiated settlement be reached, more drastic remedies may be available.

How Our Office Can Help You Negotiate Debt Settlements  –

When a client is unable or unwilling to file for bankruptcy, our office can work with the creditors to arrange “lump sum” settlements for payment arrangements. Since we are a bankruptcy firm and file bankruptcy cases on a regular basis, creditors are aware that while we are looking at bankruptcy possibilities, a negotiated resolution is preferred. We frequently succeed in obtaining a lump sum settlement that lowers the debt to 33–50% of the original amount. The loan amount will typically be lowered, but only in terms of interest and monthly payments, if the client needs to work out a payment schedule.

1. Method: Alerting Parties to Possible Bankruptcy or Litigation AlternativesWe must explain to a creditor why we believe an offer will benefit them in every transaction. Since bankruptcy and litigation defense are our areas of expertise, it is reasonable for us to advise creditors about these more extreme options and the reasons they might benefit our client while harming the creditor. As long as the creditor consents to a just and equitable negotiated settlement, it makes sense for us to refrain from taking these more extreme actions.

2. Additional Distressors We Would Like to Include in Our TalksWhen addressing creditors, we must highlight any difficulties our clients have faced, such as income reduction, health concerns, marital difficulties, business failures, job loss, and/or significant essential expenses, in order to clarify their circumstances and the necessity for a negotiated settlement. We also aim to emphasize the low income and low equity of our clients’ assets. The intention is to present the settlement offer to the creditor as their best opportunity to recoup a portion of their debt.

3. Procedures for a Settlement:We can present a number of options, with the following factors controlling the final decision: 1) the down payment amount (full partial payments are lump sums); 2) the number of installments; 3) the length of time to pay the debt; 4) the total amount owed; and 5) the amount of interest or late fees included in the payments. These elements have an impact on the final settlement and the parameters of the negotiations. Our agreements usually include a lowered principal balance, no interest or late penalties in the future, and no major payment at the conclusion. The primary points of negotiation are the amounts of partial principal that are paid and the duration of those payments. Here are

          a.Lump Sum Agreements: The better the discount, the more the client can pay up advance. Therefore, the biggest discounts usually occur when the client pays the entire discounted offer in one greater lump sum payment to settle the obligation.

          b. Installment Agreement: In cases when the customer is unable to make payments up front, we must work out a plan for how long they will have to pay the debt’s discounted principal over and how many installments they will make. The better the discount, generally speaking, the shorter the installment agreement’s duration. The majority of creditors favor payment plans with terms of one to three years, though this might vary somewhat depending on the specific creditor.

          c. Hybrid Agreement – In this case, a partial payment is made in installments, with the remaining portion being paid in one lump sum. The purpose of the bigger initial payment is to ease the creditor’s transition into an installment payment agreement where payments are due over time.

          d. Several Alternative Offers May be Sought and Evaluated  – We usually exchange ideas and consider up to three offers before deciding how to proceed. When someone declines an offer after receiving multiple ones, there are diminishing returns. As offers are usually withdrawn if not completed, it is imperative to take advantage of potentially advantageous ones as soon as they are made. Even though an offer isn’t perfect, there are situations when it’s the greatest choice. Every offer will be discussed with our clients in order to see how well it fits their objectives, situation, and available options.

4. Finalizing the Debt Negotiation with a Settlement Agreement and Other Final Documents –

         a. Settlement Agreements: Following a settlement with a creditor, we must prepare and/or examine a settlement agreement that outlines all of the terms of the agreement, including what will happen if things don’t go according to plan and if the client doesn’t make their payments on time. Usually, we also negotiate default warnings, notice requirements, and circumstances in which compliance may be challenging or impossible. When the settlement is finalized, the parties must sign it in front of a notary public.

         b. Satisfactions: When the client has completely complied with the terms of the settlement agreement, a satisfaction of judgment document must be prepared, particularly in cases where there is a judgment. In order to demonstrate that the judgment is completely paid and should be vacated, the satisfaction document is submitted to the court.

         c. Lien Release: A settlement agreement should mention and require the preparation and filing of a lien release document in cases where the creditor has a lien against the client’s property. This lien may be a judgment lien, a voluntary secured lien, or a mechanics lien.

The Differences Between Our Law Office Negotiating Your Debt and Debt Consolidation or Debt Reduction Companies

Most of the marketing that asks people looking for debt relief is for organizations that specialize in debt reduction or consolidation, which operates in a different way than our legal practice. There is a significant distinction between those approaches and our own debt negotiation and settlement strategy, as follows:

1. Debt Consolidation –  “Debt Consolidation,” a popular and highly publicized debt negotiation strategy, is a restricted solution because it typically does not attempt to lower principal and merely lowers the client’s interest payment. The organization is manned by a sizable administrative team that, while not always negotiating debt reduction, aims to lower monthly payments for clients by lowering interest rates on any credit cards that consent to do so. In an effort to control the client, they combine all monthly payments into a single payment, add their monthly fee, and paying off their debt in a long-term plan that often takes five years or more. The issues with this approach are that most clients experiencing financial hardship typically do not receive sufficient debt reduction and payment plans, and many cards fall off the plan due to miscommunications, delays, or incorrect payment allocations made by the client, the debt consolidation company, or both. This results in, at most, a partial solution for only a portion of the client’s debt. Furthermore, the credit record may indicate “settled not according to terms” at the conclusion of the payments, which is the only time the putative advantage appears on the report. Most clients come to the realization that debt consolidation is an inadequate option after a few years.

2. Debt Reduction –  Another well publicized debt negotiation strategy is “debt reduction,” which has even more stringent restrictions and issues. It is advertised as a means of lowering the principal amount owed, with the implication that it may be the client’s entire debt problem. A sizable administrative team works for Debt Reduction Services as well. Regretfully, the majority of debt reduction companies use deceptive marketing. By having clients pay them for several months at a time, they try to accumulate lump sums. Then, they approach one of the client’s creditors to negotiate a lump sum that settles the debt at a reduced rate. After that, they restart everything and are paid by the client once more. length of time, or until they have enough cash in hand to ask a different creditor to accept a reduced payment for the client’s debt. By doing this, they are typically only able to negotiate one or two debts, which they settle at a discount before sending the client’s other creditors to collections and, ultimately, court, because they were not paid while they were building up a settlement amount. Most consumers realize after a year or so that the Debt Reduction services are not helping them to resolve all of their debt issues.

3. Our Method of Debt Negotiations and Settlements – Unlike debt consolidation, our approach lowers individual debt by: a) eliminating interest rather than lowering it, and b) aiming for a sizable principal reduction. Unlike Debt Reduction, we address every creditor at the beginning of the negotiation process rather than just one at a time. Instead, we speak with each and every creditor and look for alternatives all at once. Our approach prevents neglected creditors from taking issues to court by not disregarding any of them. With our approach, in the event that a client is unable of making a lump sum arrangement, either an installment payment plan or a hybrid. In essence, the client uses our strategy to reduce down on principal, eliminate interest, and pursue settlement with most or all of the client’s significant creditors. We integrate, without the drawbacks, the best features of debt reduction and consolidation services.

4. The Staff of Our High Level Negotiation Department Looks for “Smart Solutions” That Are Tailored for Every DebtThe comparatively modest Negotiations Department personnel at our law firm is made up of highly qualified individuals with excellent expertise who have attended law school or another higher education program. In this regard, we differ significantly from organizations that specialize in debt reduction and consolidation in that we do not employ a sizable number of secretaries. These big businesses adopt simpler, universal approaches to debt settlement rather than trying to plan, optimize, and personalize each discussion and settlement because of their workforce and corporate structure. Rather, they aim to streamline, combine, and automate the bargaining process, resulting in a strategy that benefits their company.model at the price of the interests of the customer. To ensure that each debt, client, and/or negotiation has the greatest possible outcome, our staff focuses on them individually. We proceed with such negotiated solutions when it is practical and advantageous to do so, and when the discussions get challenging, our group of negotiators is able to assist us in thinking of additional options and strategies that would best provide our customers with comprehensive debt relief.

How Our Law Office Can Help You With Negotiated Debt Relief

The following options—a) Negotiated Settlements, b) Bankruptcy, and/or c) Litigation Defense—need to be carefully considered. Allow us to assist you in saving your house with our friendly, reasonably priced experience and knowledge.

While our legal advice may not be priceless, our sessions are free of charge.

Please call us at (631) 271-3737, or e-mail us at [email protected] for a free legal appointment in our Brooklyn law office to go over your possibilities for debt settlement in more detail.