Debt Negotiations & Settlements Queens

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

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

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 where the client does not want to or can not save the property and is looking for solutions that provide some measured benefit to the debtor. The opposite of Non-retention options are Retention Options, which are discussed in the preceding section on Mortgage Modifications and Other Retention Options. Retention Options are alternatives for distressed real estate where the client does want and can potentially succeed in preventing their property from going into foreclosure (apart from modification, friendly short sales, payoffs, reinstatement, forbearance, payment plan, etc. are covered in the previous section on Retention 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. In numerous cases, our clients are either too wealthy to be eligible for filing a Chapter 7 bankruptcy case, or they might own too many assets to consider filing for bankruptcy as a viable option to adequately relieve their debt. Certain debts are either fully non-dischargeable by law or carry a significant risk of objections to their discharge in a bankruptcy proceeding. 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 strategy for talks and agreements comprises: 1) individualized and optimal settlements for every person debt and creditor pursued by elite negotiators looking for “smart solutions”;2) simultaneously contacting the creditors with proposed lump sum, installment, or hybrid settlements that waive interest and aim for a sizable principal reduction;3) employing bankruptcy and alternative services as real fallbacks in the event that the desired settlements are not forthcoming; and 4) working with our clients to ensure their agreement with the amounts of our offers and the terms of the settlements. 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 from Queens 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 significant facets of In order to determine what kinds of settlements the client can afford to pay and how they can be structured, information about the client’s and the household’s overall income, expenses, budget, and debt situations—including debts that the client does not want to or cannot negotiate—must be obtained. 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 then, we keep obtaining records and information from several asset and debt searches as well as legal searches, which provide us with further details on 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 the debt negotiation process is to identify the legal contact for the creditor and negotiate with them. 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. After identifying the appropriate party to In order to discuss the debt, we inform the creditor in writing of 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. Several Offers – Once negotiations begin, there may be 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.

5. Settlement Agreement – Upon reaching a settlement, our goal is to record the agreement through correspondence or emails that distinctly outline the fundamental conditions and terms of the agreement. Both parties develop, approve, and sign a formal settlement agreement. The settlement protects the customer so long as they follow the terms of the agreement. The agreement details how the creditor is to contact the client and our office in the event of a client default, as well as the number and duration of the notifications that are required. The client may eventually forfeit the benefit of the settlement agreement if, in spite of these safeguards, they consistently fail to pay.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 –A release of liens paperwork is executed and submitted in the instance of real estate where there are liens, or a satisfaction of debt agreement is secured and filed where there is a judgment.

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. When the intended settlements are not reached, these bankruptcy and litigation possibilities become actual options rather than merely threats.

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.

AA client filing under Chapter 7 bankruptcy will have most or all of their debts discharged, giving them the opportunity to start over financially. When it comes to handling heavy credit card debt and other unsecured debts like personal loans and medical bills, a Chapter 7 lawsuit is a very powerful weapon.When a client cannot pay their current obligations and faces the possibility of creditor harassment, collection activities, and negative credit, a Chapter 7 case can be quite beneficial.
The filing of a bankruptcy petition, schedules, and statement of financial affairs with the bankruptcy court initiates the Chapter 7 case. These documents, which are meant to reveal all of the client’s financial affairs at the time of filing, include details about all of the client’s assets, liabilities, income, and expenses at that time. Such data is acquired by our company visiting with the customer and conducting a “intake,” during which we ask a number of questions concerning the client’s financial situation and gather supporting evidence for the file, such as bank statements, tax returns, income verification documents, and the client’s bills and invoices. In addition, we get a judgment lien search request and run a credit report, so that We are able to accurately disclose our clients’ debts and creditors on their bankruptcy schedules. The client is required to complete a pre-filing session of “credit counseling”—a confidential session conducted over the phone or online with a credit counselor who evaluates the client’s finances—before filing for bankruptcy. An “automatic stay,” which compels creditors to immediately cease all collection efforts and release bank constraints and wage garnishments, will shield the client from creditors as soon as the Chapter 7 case is filed. A discharge order is given to the client at the conclusion of a Chapter 7 case.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.

EvIn situations 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 for the debt to be spread out over sixty months with no interest on the majority of the debt and monthly installment payments spread out over that time. Chapter 7 may not be feasible or a preferred solution in cases where the client’s income or asset situation indicates excess income or equity. In such cases, chapter 13, particularly if a percentage plan is feasible, becomes an option to take into consideration. In addition to spreading out debt without interest over a 60-month period, a percentage plan lowers the monthly payment by the amount of

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.

and to support any prospective 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. lawsuit is an alternative that can be pursued if the threat of lawsuit is ineffective in obtaining an acceptable negotiated settlement. Litigation is typically particularly effective in defending against different

When Negotiations Would be Preferable to Bankruptcy

1. Too Much Income to File Chapter 7 Bankruptcy– 

When there is too much income to file for bankruptcy under Chapter 7, negotiations are taken into consideration. The debtor’s income must fall below a specific threshold in order to petition for Chapter 7 bankruptcy. The income must be less than the median for New York State based on household size, as determined by the average gross income for the previous six months as determined by family size. View the chart at: https://www.justice.gov/ust/eo/bapcpa/20200401/bci_data/median_income_table.htm  Certain spending items effectively reduce the amount of the counted income, and may even qualify the client for Chapter 7, if the income exceeds the median income for the family size based on the number of household members claimed on the client’s most recent tax returns. Various types of insurance, mortgage arrears, childcare costs, assistance for an elderly or chronically ill family, and payments on secured debts are examples of these protected spending items. These are for quantities that the means tests law’s drafters believed were necessary, like However, it might not be a good idea to try to fit a client into a Chapter 7 case if their income is more than $10,000 to $15,000, which is 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. It is crucial to carefully average the client’s gross family income for the six months previous to filing for bankruptcy because Queens has a greater average household income than many other regions of New York State. This can be a difficult judgment in many near-line circumstances, since even if the household When an individual’s salary surpasses the median income threshold, they may still be able to make a “close” case under certain conditions because there are numerous exceptions for necessary expenses. In addition to the objective “median income test,” a subjective “budget test” is also available, which determines where the client’s surplus is found by subtracting normal monthly expenses from net monthly revenue.

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’ meeting during the Chapter 7 case in order to be questioned by a trustee for the Chapter 7 case, whose job it is to ascertain whether any equity-containing assets might be sold to pay off creditors’ claims. Because there are typically no assets, Chapter 7 cases are referred to as “no asset” cases.to fulfill creditors’ demands. 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, New York State residents have a choice between the exemption program provided under NewYork State law or the federal legislation’s exemption program. 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 scheme, which is different and offers more generous protection for personal property. This exemption can be used to protect any type of personal property, including vehicles, bank accounts, and tax refunds.  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 risky and a Chapter 13 case too costly.

3. Issue of “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 may also be “fraudulent transfers,” which are payments made to family members or close friends six years before a bankruptcy case for less than a fair amount of money.the borrower. Avoidable transfers are not always evident, and under bankruptcy law, a transaction that at first glance seems benign may later be claimed to have been avoidable. 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 Terms of Amount and Number of Creditors for a Chapter 7 Bankruptcy or for Chapter 13 Bankruptcy – Sometimes 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 creditor’s listing is amended following a settlement, it can read “Settled Outside of Terms,” indicating that the client is making payments in accordance with a contract that differs from or is less than the original terms of payment. If the client can easily and promptly satisfy their terms regarding timely payments, there will be an improvement on the credit report. 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.

5. Debt that May be Objected to in a Bankruptcy or is Not Dischargeable – Negotiations are required for certain debts, including as student loans and certain taxes, which are by nature non-dischargeable. However, there could be an objection to other debts if there was fraud or deception, or if there was bad faith spending. In cases where the debt is not automatically dischargeable, it is important to carefully consider the likelihood of a potential objection to the discharge as well as the client’s capacity to refute it. 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. Before filing for bankruptcy, creditors may keep an eye on big cash advances and/or balance transfers, and they may oppose to the debt being discharged. Sometimes it’s best to wait and make a set number of payments before filing for bankruptcy when a customer has just incurred such “cash” debt.

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. Lack of Ability to Negotiate a Settlement – We must present the creditor with an offer, which may be in the form of installment payments or a lump sum settlement. It is better to file for bankruptcy if a client has little to no ability to settle.

2. Preference for Quickly Eliminating the Debt in Bankruptcy – 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 strategy 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, Difficult to Contact/Ascertain and/or Difficult to Settle – When negotiated settlements prove unfeasible for a variety of reasons, bankruptcy becomes the preferable course of action. 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 –As long as the client is realistic about the dangers, costs, and potential restrictions of litigation, it may be a suitable alternative if the debt is contested or was obtained in a way that violates procedural laws. 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 is Potentially Expensive, Prolonged and Cumbersome – Litigation is typically avoided in situations when the client’s finances are tighter, the number of creditors is higher, and the obligations are less, even in cases where there may be legal difficulties. 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 – It is helpful to retain bankruptcy and/or litigation as threatened options in the negotiations, even though they may not be viable options in some circumstances. This way, the creditor will know that if a reasonable negotiated settlement cannot be reached, there are more harsh remedies 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. Approach – Notice of Possible Bankruptcy and/or Legal Action – We 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. Other Hardship Factors We Want to Incorporate into Our Negotiations – When 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 customer can pay up front. 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 situations where the customer lacks the funds to pay in full, we must work out a payment plan that includes a time limit and a maximum number of installments for the reduced principal. 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 scenario, part of the payment is done in installments, while the remaining amount is paid all at once. The larger initial payment is intended to facilitate the creditor’s transfer to an installment payment arrangement, in which installments are due gradually.

          d. Multiple Alternative Offers Could Be Looked for and ConsideredWe 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 – We must prepare and/or evaluate a settlement agreement that outlines the details of the arrangement in detail, including what would happen if the client is behind on payments or if the deal does not work out as anticipated, once we have reached a settlement with a creditor. 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 fully complied with 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 instrument in cases where the creditor holds a lien against the client’s property. This lien may be a judgment lien, a voluntarily 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 cure because it merely lowers the client’s interest payment and typically doesn’t attempt to lower principal. 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. They try to control the client into paying off their debt in a long-term plan that typically lasts at least five years by combining all of the monthly payments into one, adding their monthly charge, and trying to enforce it. Among the issues with this approach are that the suffering and that frequently some cards slip off the plan, resulting in, at best, a partial solution for only a portion of the client’s debt due to payment delays or misallocations either by the client, the debt consolidation business, or via miscommunication. 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 –  “Debt reduction, another widely publicized debt negotiation strategy, with 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 credit as it does not disregard any of the creditors. Creditors file lawsuits. According to our process, we look for a hybrid or installment payment agreement if a client is unable to complete a lump sum agreement. 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. Our High Level Negotiation Department Staff Searches for “Smart Solutions” Customized for Each DebtOur law firm’s relatively small Negotiations Department staff is composed of very skilled professionals with superior knowledge who have either graduated from law school or another higher education program. This is one area where we diverge greatly from companies that focus on debt relief and consolidation: we don’t have a lot of secretaries on staff. Large corporations employ more straightforward, comprehensive debt settlement techniques due to their workforce and business model, which doesn’t aim to Plan, Organize, and Tailor Every Settlement and Negotiation. Rather, they aim to streamline, combine, and automate the process of negotiating, which leads to a strategy that benefits their business model at the expense of the client’s interests. 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

When trying to get relief from credit card debt and other unsecured obligations, the client’s success greatly depends on the skill of the lawyer defending them. Since 1993, we have effectively assisted thousands of Queens, Nassau County, and Suffolk County residents in obtaining debt relief from unsecured sources. Many of them have been able to permanently get rid of their unsecured debt and restore their financial stability with our assistance. It is important to thoroughly consider each of a person’s legal choices when they have unsecured debt, including a) negotiated settlements, b) bankruptcy, and/or c) litigation defense. Allow us to assist you in saving your house with our friendly, reasonably priced experience and knowledge.

Our consultations are free, but our legal advice may be invaluable.

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