Do You Need a Lawyer to Negotiate a Credit Card Debt Settlement?

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In the video above we take a look at various remedies our attorneys pursue when a consumer is in serious debt and is being sued by their credit card company. One strategy is to negotiate with the credit card company (creditor) to lower and sometimes even eliminate the amount of debt owed by the consumer.

Working with a skilled debt relief lawyer to negotiate credit card debt is highly beneficial. We understand how to efficiently work with creditors, and what to look for in case of a fraudulent lawsuit. Because all negotiations are about leverage, our attorneys know the proper leverage to apply. Our clients are also confident that they are protected from deceptive debt settlement services and scams.

Speak with an experienced Florida attorney at our firm today.
Call 855-Kramer-Now (855-572-6376)

How do credit card negotiations work?

We begin by contacting all involved credit card companies, as well as debt collection agencies hired by the creditor. We work to suspend penalty fees, late fees and other accumulating costs that exist on the account. All creditor correspondence with the consumer is routed to the attorney.

A Kramer Law attorney will work with our client to determine an amount of money he or she can afford to pay. Our attorney will enter into negotiations with the creditor, which can last a few months to a year or more in complex cases.

Generally, the most beneficial reduced settlement amounts are paid to the creditor in a lump sum, avoiding thousands of dollars of interest and the debt is removed instantly. In other cases we need to negotiate for monthly payment amounts that is in the scope of the individual’s budget.

In most cases, the creditor agrees to negotiate the debt down. Credit card debt is unsecured debt, which would be discharged in a Chapter 7 bankruptcy filing. The creditor would much rather recover a reduced amount than risk recovering no money at all, should our client qualify for and choose bankruptcy.

Likewise, it is often to the creditor’s advantage to accept a 30—50% reduced settlement as opposed to filing suit, getting a judgment and waiting for collections to try to collect on the judgment, or having to garnish wages or try to levy a bank account.

Our debt relief attorneys will review our client’s credit report to ensure they are being treated fairly. As part of the deal, we negotiate with creditors to report the debt as settled on the credit record and to remove other negative information.

One point we consider when deciding whether to negotiate credit card debt settlement vs. filing a bankruptcy is that you may already have a poor credit rating. You may already be contemplating more extreme measures such as filing a bankruptcy. In these cases, when you are protected by an experience bankruptcy lawyer, there is little risk involved by attempting to settle the debt through negotiations. Your Kramer Law attorney will identify the risks—such as, forgiven debt will be seen by the IRS as taxable income—and benefits—such as, debt settlement is not as harmful to your credit score as a bankruptcy filing.

Consult with a lawyer to negotiate a credit card debt settlement

Bankruptcy lawyers with Kramer Law have helped negotiate large debt reductions for hundreds of Central Florida residents, and we are ready to help you. In all manner of debt relief, our lawyers will defend your rights and help you get on a rock solid, practical path to financial freedom.

Contact us today to learn more.

Get Help with Legal Issues Now! - Call 855-Kramer-Now (855-572-6376)
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