Sometimes settling a debt is a better option than fighting the lawsuit. Schafer Law Firm, P.C. has experience settling accounts with almost all creditors and debt buyers that file lawsuits in Texas. That experience allows us to inform you of what settlement options you are likely to have.
In many cases Schafer Law Firm, P.C. can negotiate for a one time lump sum payment or for payments spread out over several months to settle the debt. With the right approach many settlements can be reached without a judgment in the lawsuit.
If you’ve been sued for a debt and want to learn more about your settlement options call Schafer Law Firm, P.C. at 210-474-6950 for a free consultation.
Whether settling your own debt or enrolled in a debt settlement program, you need to be legally protected. Our legal plans start at $25 per month. Our legal services include:
Debt settlement is also known as debt management, debt negotiation, debt relief, debt resolution and debt compromise. Debt settlement involves negotiating with creditors to pay a smaller amount in exchange for satisfying your entire debt. You generally stop making your regular payments while saving up the settlement amount.
Debt settlement can also involve negotiating to pay creditors on different terms easier for you like longer and lower monthly payments on the full or reduced balance.
The goal is to resolve your debts, hopefully at a reduced amount, or at least on better terms so you can get out of debt without filing bankruptcy or dealing with lawsuits and judgments.
It might be an option if you:
Yes, but it can be challenging. Consulting a lawyer or reputable debt settlement company can be helpful. There are some untrustworthy debt settlement companies, even if they work with an attorney, so it is important to check out ownership, complaints and even the state bar for discipline history if an attorney is involved.
Consider:
Remember: Before embarking on any debt relief strategy, research thoroughly and seek professional advice if needed. Choosing the right path can help you escape the debt trap and achieve financial wellness.
It's unlikely that simply hiring a debt settlement company will cause a creditor to sue you. But how the debt settlement company proceeds can cause a creditor to sue you. Typically the more time that passes from your last payment, the more likely you are to be sued. That’s why some debt settlement companies set you up to fail if they take a lot of money up front for fees or legal plans before they use your money to settle your accounts.
Here's some of the reasons a creditor may file a lawsuit if you hire a debt settlement company:
You can contact your creditors and pay the full balance or arrange a settlement as fast as possible to avoid lawsuits. If you are not able to do that, Schafer Law Firm has experience helping thousands of Texas defend debt lawsuits and settle debts not yet in lawsuits. That experience gives us insight into how to avoid debt lawsuits when you want to settle your debts. Some creditors will not work with a debt settlement company, but are required to work with a lawyer. Here are some of the ways we can help you and avoid creditor lawsuits.
Here are some tips to minimize the risk of being sued after attempting to settle your debts:
However, there are some situations where a lawsuit might still be possible even after attempting a settlement:
When Schafer Law Firm represents you, your creditors are required to deal directly with us and cannot legally contact you. We encourage your creditor to take a pause to review your situation and legal representation along with options to work with your willingness to resolve the account before they file a lawsuit.
If you're concerned about the possibility of being sued, remember it's always a good idea to consult with a qualified attorney with experience with debt lawsuits. They can review your situation, negotiate a fair settlement, and ensure you're protected throughout the process.
It can save you money, but as with most things, the answer is complicated and depends on how you calculate savings. It depends on several factors, including the amount of your debt, your individual circumstances, and the specific terms of any settlement you reach. Additionally, the costs and benefits of debt settlement include more than the debt and payoff amount.
Things to consider with debt settlement:
Here are some things to consider before deciding on debt settlement:
Schafer Law Firm can help you understand your options and determine if debt settlement is the right choice for your specific situation. If so, we can advise you on the best way to settle debt effectively and improve your financial health.
Ultimately, the decision of whether or not debt settlement can save you money depends on your individual circumstances and priorities. Weigh the potential benefits and drawbacks carefully, explore all alternatives, and seek professional advice before making a decision.
There's no single "best" way to settle a debt, as the optimal approach depends heavily on your unique circumstances and the details of your debt. Here are some effective strategies and factors to consider when determining the best way to settle your debt:
Before attempting settlement:
Negotiating the settlement:
Evaluating potential debt settlement companies:
Additional tips:
Seek professional help if needed:
Remember, debt settlement is a serious decision with potential consequences. Weighing the pros and cons carefully, researching your options, and protecting yourself throughout the process are crucial to achieving a successful outcome.
Determining a "good" settlement for your debt depends entirely on your specific situation and risk tolerance. Ultimately, a good settlement is subjective but must be something you can pay.
There's no one-size-fits-all answer, but here are some observations Schafer Law Firm has made while helping thousands of clients with unsecured debt issues:
Ultimately, the best settlement for your debt is the one that balances the potential financial savings with the risks and drawbacks. It's crucial to do your research, compare options, and seek professional help if needed before making any decisions.
Here are some resources that may be helpful:
© 2022
Schafer Law Firm, P.C. All Rights Reserved. Disclaimer