Credit Card Debt Negotiations - How to Legally Only Pay Back 50% of Your Unsecured Debts
A person generally files for bankruptcy when he thinks that there is no way he can pay off his debts.
In other words, the total debt amount is much more than the income of the debtor.
A few years back this would have been true but today a lot has changed.
Not only are there many other options available through which a debtor can come out of his debt but also the bankruptcy laws have changed so much that filing for bankruptcy is no longer that easy.
So what does a person do if his income is just enough to meet his monthly expenses? The answer to this question is debt settlement.
It is also known as debt arbitration or debt negotiation.
This process mainly involves negotiation between the creditor and the debtor to reduce the total amount of loan that is owed by the debtor.
It is important to know that a customer needs to have a minimum of ten thousand dollars in unsecured debt in order to qualify for this program.
A survey result shows that an average American today has more than $9000 in credit card debt, so a lot of people can qualify for the same.
The tough part is to convince the credit card company of the financial crisis and to assure them that the only other way out is by filing for bankruptcy.
There are a number of debt settlement companies who can assist you with the negotiation.
Also their presence emphasizes the seriousness of the situation.
Once you have your creditors convinced you will need a certain amount of cash in hand to proceed with the negotiation.
A successful negotiation can get your debt eliminated by as much as 50 % of the total outstanding and you can walk away by paying on 50 % of your dues.
In other words, the total debt amount is much more than the income of the debtor.
A few years back this would have been true but today a lot has changed.
Not only are there many other options available through which a debtor can come out of his debt but also the bankruptcy laws have changed so much that filing for bankruptcy is no longer that easy.
So what does a person do if his income is just enough to meet his monthly expenses? The answer to this question is debt settlement.
It is also known as debt arbitration or debt negotiation.
This process mainly involves negotiation between the creditor and the debtor to reduce the total amount of loan that is owed by the debtor.
It is important to know that a customer needs to have a minimum of ten thousand dollars in unsecured debt in order to qualify for this program.
A survey result shows that an average American today has more than $9000 in credit card debt, so a lot of people can qualify for the same.
The tough part is to convince the credit card company of the financial crisis and to assure them that the only other way out is by filing for bankruptcy.
There are a number of debt settlement companies who can assist you with the negotiation.
Also their presence emphasizes the seriousness of the situation.
Once you have your creditors convinced you will need a certain amount of cash in hand to proceed with the negotiation.
A successful negotiation can get your debt eliminated by as much as 50 % of the total outstanding and you can walk away by paying on 50 % of your dues.