Debt Settlement

Because a bird in the hand is better than three in the bush...

 

When someone stops paying on a debt, the creditor will start with harassing telephone calls, notices in the mail, and any other means (legal and sometimes illegal) that a creditor thinks it can get away with. After about six months, the creditor will "charge off" the debt. This DOES NOT mean that the creditor has released the debtor. Instead, the creditor has merely taken the debt off of its balance sheet as is required by accounting rules, sop that the debt does not count as an asset.

The creditor generally has a prescribed amount of time during which it can pursue the debtor. Most often, of the debtor does not pay before this time expires, the creditor will sue the debtor for the debt. Often, attorneys fees, court costs, and interest are added to the orignal debt. A large part of our firm's practice is helping debtors settle their debts with their creditors. If this does not work, there are other options, including bankruptcy.