Frequently Asked Questions About Debt Negotiation In Louisiana
Do you have questions about the debt negotiation process? Our Haughton attorneys can educate you on your debt settlement options. Here are some questions our debt negotiation lawyers can answer:
How does debt negotiation work?
Debt negotiation is a bankruptcy alternative, and it generally starts with contacting the creditor in question and asking to settle the debt for less than is owed – usually through a lump-sum payment. An attorney can facilitate the process by negotiating on your behalf and looking for areas where there is room for flexibility, such as removing accrued fees and interest charges from the final bill.
What debts can I settle?
Not all debts can be settled through negotiations. Some of the most common debts that can be forgiven include:
- Credit card debt
- Personal loans
- Medical debt
You can talk to an attorney to review your debts and identify what debts could be settled.
How long does it take to negotiate a debt settlement?
The timeline for a debt settlement will likely depend on a range of factors, such as the amount of debts that need to be addressed, the number of creditors and a creditor’s willingness to forgive debts. On average, a debt settlement may take anywhere from months to years to complete.
Will my credit report be affected by debt negotiations?
Yes. A debt settlement can show up on a credit report for seven years. This can affect a debtor’s ability to apply for future loans and credit cards.
Are there risks of debt negotiations?
Debt negotiations may result in a reduced principal, fees and tax implications. Furthermore, it may take several offers before creditors agree to a debt settlement. It is important that debtors explore the pros and cons of debt negotiations before taking their first step.
Can I negotiate a debt settlement on my own?
Debtors can negotiate a debt settlement with creditors – but they lack the knowledge of how to apply the appropriate pressure to get a favorable result and often do not realize where there is room for compromise. A lawyer can provide dispassionate guidance and clarity when trying to resolve a debt for less than you owe.
Talk To A Haughton Lawyer Today
The debt negotiation attorneys at The Cook Law Firm, APLC, can help you explore your debt settlement options. You can learn more about what we do by calling our Haughton office at 318-703-5851 or contacting us online for a free initial consultation.