Types of Cases We Handle
Our team will negotiate with creditors if we believe they may be motivated to accept less than what you owe. Creditors will typically settle your debt if they believe your only other option is to file bankruptcy, which would cause them to lose even more money. In turn, you can pay less than what you owe without going through the process of bankruptcy.
At JM LAW Firm, APC, we can settle:
- Credit card debt. Credit card companies can be highly motivated to avoid bankruptcy because credit card debt is unsecured, meaning it is dischargeable through bankruptcy (unlike vehicles and real estate).
- Tax debt. Debt settlement with the IRS is called an Offer in Compromise, which the IRS will accept if they believe your offer is the most they can reasonably expect you to pay.
What Are the Pros and Cons of Debt Settlement?
Debt settlement allows you to pay a lump sum that is usually less than what you actually owe in order to “settle” your debt. This is something that is offered by third-party companies and you have the ability to negotiate a settlement with debt collectors. This may sound like a good option, however it can also be a risky choice. If you are considering debt settlement, be sure to have an experienced Woodland Hills lawyer by your side. We can ensure that your debt settled fairly.
Pros of Debt Settlement:
- There is a possibility that your debt will be reduced.
- You can avoid filing for bankruptcy.
- Creditors and debt collectors will stop contacting you.
Cons of Debt Settlement:
- There is a possibility that your creditors do not wish to negotiate.
- You may end up with more debt. You are unable to make payments, late fees or interest charges may add up. Creditors may also file lawsuits against you.
- The debt settlement company may charge you a fee even before the whole debt is settled. For example, these companies cannot charge fees until a settlement has been reached. If you have more than one debt, once you have agreed to one, they may charge you for full fees even though you still have other debts pending settlement.
- There is a chance that debt settlement may negatively impact your credit.
If you are unsure of what to do, reach out to one of our experienced Woodland Hills debt settlement attorneys. We are backed by years of experience and are prepared to show you your best options
Scroll further below to learn about the difference between working with attorneys and debt settlement companies.