What is Credit Card Debt Settlement?
Also referred to as debt negotiation or negotiated debt settlement, credit card debt settlement is the process of having your debt reduced and paid off in one lump sum. There are a few occasions when debt repayment can come in the form of multiple installments, but it is extremely rare.
Why Would a Creditor Agree to a Reduced Payment?
The ultimate goal of a creditor or debt collector is to retrieve funds, which is why they will go to the extent of pursuing legal action against you. Debt collectors know that when you face financial hardship, you are more likely continue to miss payments. You may choose to continue to do nothing or even file for bankruptcy. Both options leave debt collectors empty handed.
Debt negotiation results in repayment. This frees them of the hassle of suing you and risking the possibility of failing to recover funds. Credit card debt settlement is ultimately beneficial for both parties as you gain financial relief and creditors receive payment.
How Can a Debt Settlement Attorney Help Me?
Individuals who attempt to settle their debt without adequate legal representation are more likely to fall short. Debt collectors typically do not entertain the idea of debt settlement if a debtor lacks legal representation. Instead, they attempt to talk you into paying the entire balance, regardless of your situation. The process can be exhausting and extremely time-consuming.
An experienced debt settlement attorney can serve as your legal counsel throughout the process and negotiate a deal most favorable to you. Your attorney can also help unfreeze your bank account and free you from the grips of wage garnishment through strategic negotiation. Heather Benveniste has unique knowledge of how creditors operate from her experience as a debt collection attorney and uses it to the benefit of her clients.
What is the Statute of Limitations in Illinois for Credit Card Debt Collection?
There is a 5-year statute of limitations on debt collection in Illinois for an unwritten agreement and 10-year statute of limitations for debt with a written agreement. If you file a payment or written promise to pay within the ten year period, legal action is permitted up to ten years after the payment or agreement.
When is Debt Settlement Necessary?
Acquiring a debt settlement attorney is suggested if you are in debt that you cannot pay off in a 2 to 3 year period or if you’re facing financial hardship that restricts you from making payments. The sooner you take action the better off you will be as you can avoid sinking deeper into debt.
Is a creditor seeking legal action against you? Speak with an experienced credit card debt attorney. Attorney Heather Benveniste with Benveniste Law Offices can make you aware of your legal options and pursue legal action on your behalf. She has experience representing the afflicted debtor and will not settle until she resolves your debt under the most favorable terms. Contact us today at 1-800-497-5358 for a free consultation. You don’t pay a penny until we resolve your debt.