Debt Settlement Experts California

Answering some questions for Debt Settlement

With literally thousands of people in debt in the ongoing American financial crisis, there are plenty of those who have jumped in by forming debt settlement companies without adequate knowledge of what should be done during such a time and in the process making a fool of people who are already stressed out.

As a debtor you should be aware of the pros and cons of the debt settlement and also what to expect, how to deal with and what not to do during debt settlement. Without adequate knowledge of this, you could be in big trouble because banks that you owe money to could actually sue you for even enrolling in ad debt settlement programs.


Most people have different questions regarding sensible debt settlement programs, let’s attempt at answering some of them here. Let’s take a look at some of the questions that hover around many of the debtor’s minds.

- Is debt settlement really a viable choice?
- How does one choose a firm that will help you settle your debts?
- Why should a company/creditor choose to overlook a part of your debts?
- What kind of debt can be settled?
- How are the creditors paid back?


Debt settlement can be very advantageous to someone who is simply unable to repay their debt. The process sees some negotiation with the creditor, which is done on behalf of you the debtor by the debt settlement company you choose to represent. A large, one-time payment is offered to the creditorand a request is sent to wave off the rest of your debt. In return for this one-time payment, the company /creditor agree to forgive or erase the complete amount due because they are convinced that you are unable to return the entire amount.

Why would your debt amount be forgiven?

Logically thinking, why would any company/creditor forgive your debt? Well the answer to this lies in the fact that as a debtor you have proved beyond doubt that you are unable to repay the loan amount in full and will have to declare bankruptcy and in any case the creditor eventually does not stand to gain anything because the debtor really does not have anything to repay with. In such a case, the creditor thinks that settling the debt is a good opportunity to get back at least some of the money due to them. There are of course situations also when the creditor himself maybe a bit tight on money and agrees to accept the best possible offer that comes their way.

Does having a good negotiator mean a good debt settlement for the debtor?

There are many who think that having a good negotiator is akin to having a good debt settlement. That is not necessarily true, though good negotiating skills do matter. A good debt settlement firm will know their process very well. They would not make tall claims before they can ascertain at what level your debt is. It also definitely helps to have a lawyer who can settle your debt rather than an ordinary debt settlement firm. This way you get the best of both worlds.

How are the creditors paid when a settlement is reached?

The debt settlement company will ask you to save your monthly payments so that money can be saved for a lump-sum amount that can be offered to the creditor. It is only when the cash is ready to be paid that the creditors should be contacted. In the meantime so that no action is taken against you for monthly non-payment the lawyers of the debt settlement firm will represent you. If and when the creditor agrees to this amount that is offered by you, the amount is forwarded to them by the debt settlement firm on your behalf


Usually most creditors accept settlement payments via 4-6 monthly installments. Eventually, this has helped many individuals successfully settle their accounts and start a new life.