Debt Negotiation – Debt Settlement in Pennsylvania

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Debt Negotiation - Debt Settlement


The goal of debt negotiation or debt settlement is to work out a lump sum settlement or a payment arrangement with creditors. Not all creditors are willing to enter into such a plan. However, savvy creditors will sometimes negotiate with an attorney rather than seeing the debt become noncollectable. Often debts can be settled for far less than the balance. In some instances, debt negotiation may be preferable to bankruptcy.

When to Consider a Creditor Negotiation:

  • You could pay off the balances if settled for a much reduced amount.
  • You could pay the creditor, if the payments could be reduced.
  • You want to avoid having a bankruptcy on your credit report.
  • Your financial difficulties are short term.
  • The problem is primarily with one or a few creditors.
  • You have filed for Chapter 7 bankruptcy within the last 8 years.

Benefits of Debt negotiation

  • Avoid bankruptcy
  • Pay balances paid at a steep discount
  • Settle lawsuits and judgments
  • Eliminate debt that has prevented you from rebuilding your credit

Debt negotiation is not possible in all cases, and Chapter 7 or Chapter 13 bankruptcy may be better alternatives under some circumstances.

See our debt settlement FAQ for more information. If you need professional help in negotiating with your creditors, give us a call.