I Need Help Now
Special Discounts For
Hurricane Victims!
Nowack & Olson, PLLC
South Florida
Bankruptcy Attorneys
Free Consultation

The truth about debt negotiation

Debt negotiation companies offer help to people in Florida who are having trouble getting out of debt. While these companies can often help debtors to negotiate settlements with their creditors, there are downsides to using debt negotiation as a solution to debt problems. One of the downsides to debt negotiation is that the process usually cannot begin until the debtor is delinquent on their bills.

Debt negotiation usually takes about 24 to 48 months and results in an average debt reduction of about 50 percent. The total amount that a debtor will have to pay to settle their debts does not include the fees that they will owe to the debt negotiation company. New laws do not allow debt negotiation companies to ask for upfront fees before a debt has been settled or reduced.

A person who is thinking about working with a debt negotiation company should consider how the process might affect their credit score. Debts must be delinquent before negotiations can begin, so there is always a risk that a creditor will use aggressive collection methods before a settlement is reached. Debts that are negotiated and settled will remain on a person's credit report for seven years. However, delinquent accounts that have been settled will not affect a person's FICO score.

Ongoing debt negotiations do not always stop creditor harassment or prevent utility companies from issuing shut off notices. On the other hand, filing for Chapter 13 bankruptcy can allow a debtor to enjoy the benefits of the automatic stay that halts all actions by creditors. A person who is overwhelmed by debt may want to talk to a bankruptcy law attorney about all of their options.

No Comments

Leave a comment
Comment Information
Email Us For a Response

Let Us Help You

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Sunrise Office
8551 West Sunrise Blvd., Suite 208
Plantation, FL 33322

Toll Free: 888-813-4737
Phone: 954-349-2265
Plantation Law Office Map

Doral Office
8180 NW 36th St., Suite 102
Miami, FL 33166

Toll Free: 888-813-4737
Phone: 305-698-2265
Miami Law Office Map

Boca Raton & Delray Beach Office
6501 Congress Ave., Suite 100
Boca Raton, FL 33487

Toll Free: 888-813-4737
Phone: 561-463-2265
Boca Raton Law Office Map

Jupiter & Palm Beach Gardens Office
601 Heritage Dr., Suite 137A
Jupiter, FL 33458

Toll Free: 888-813-4737
Phone: 561-463-2265
Jupiter Law Office Map