Debt negotiation, also called debt settlement or debt arbitration, is a process that occurs when a borrower and creditor negotiate with one another to resolve debts the borrower owes. In many cases, instead of working with creditors one-on-one, people will obtain the services of a financial or legal professional who has debt settlement experience.
By working with a professional, people usually find that their debts are settled faster and the amounts that they owe are lowered by more then they would be able to get if negotiating themselves.  At the Law Offices of Jon L. Martin we have helped countless clients throughout the United States settle their debts. If you are considering debt settlement, contact the professionals at the Law Offices of Jon L. Martin to schedule a free consultation.

Why Do People Choose Debt Settlement?

Often times, people turn to debt settlement when they cannot afford to repay their debts, despite immense effort. Debt settlement allows people to work directly with their creditors to negotiate a repayment amount that is less than the total they currently owe. In some cases, we are able to get creditors to reduce their balances by 40 – 80%.

People also choose to pursue debt settlement when they are on the verge of bankruptcy. Debt settlement is an effective step one can take when they are serious about resolving their debts and are hoping to avoid filing for Chapter 7 or Chapter 13 Bankruptcy.

The debt settlement process comes to an end when debtors and creditors reach a mutually agreed upon amount. Once the amount is decided upon, the debtor will have to pay that amount in full within a limited amount of time. The creditor will then close the person’s account and the settlement should appear on the person’s credit report.