The debt settlement process, also called debt reduction or negotiation, is an alternative solution (an option other than filing bankruptcy) in which your lawyer can help you settle each of your outstanding credit card debts or other collection accounts, individually, for a lump sum. The debt settlement process can be a very expensive solution. In addition to attorney fees, you can expect to pay a large sum of money to settle each individual credit card or account. Most lenders will settle for somewhere around 35% to 60% of the total amount that you owe for debt settlement in San Diego.
Some credit card lenders may demand full payment and will file a credit card lawsuit against you obtain a judgment for the full amount of the debt. This poses a huge risk in that your lawyer may help you settle all of your debts, and you do by paying large sums of money, and then the last remaining lender demands full payment.
If you are trying to settle $100,000 in outstanding credit card balances, you can generally expect to pay $35,000 to $60,000 paid to your lender, and thousands of dollars in lawyer fees, to go through with the debt settlement in San Diego.
With bankruptcy, in contrast, assuming that you qualify for bankruptcy, you could file Chapter 7 and totally eliminate credit card debt, and all you would pay is the attorney fee to your lawyer for representing you in a Chapter 7 case.
Because debt settlement can be so expensive it will be recommended by your lawyer when filing a Chapter 7 or Chapter 13 bankruptcy just is not an option, either because you have too many assets that you would not be able to keep if you filed bankruptcy San Diego. Your lawyer may also recommend that you settle as opposed to filing bankruptcy, if you earn too much income to be able to qualify for Chapter 7 relief or Chapter 13 relief. If such relief is not available to you, then debt settlement will usually be your next best debt relief option.