Debt Settlement

Debt Settlement Attorney in Rockville, Maryland

Can’t pay your bills? More money going out than coming in? You feel hopeless.

Let Kurland Law Group get you free from debt! We have negotiated hundreds of settlements and have a 95% success rate at saving Maryland residents thousands of dollars in unsecured debts.

Learn how to stop collection letters and phone calls through a FREE legal consultation with our debt settlement attorney in Rockville.

What Is Debt Settlement?

Settlement of debts for less than you owe is called debt settlement.

It’s sometimes called debt relief or debt modification, and typically a third party handles it. Keep in mind that not every lender accepts debt settlements, and in some instances, it may do more harm than good.

How does debt relief work?

Debt settlement may be achieved in several ways. They usually charge a set fee or a portion of your funds to achieve this. In other words, even if your debt is resolved for less than what you owe, there are still extra fees.

You’ll need to start paying your debt settlement business while they negotiate your debt. The corporation may use the account to settle your debt or collect fees owed to it. In some instances, firms may ask you to cease paying your creditors directly and pay them instead. Delay in payments may worsen, lowering your credit score.

Accept the updated conditions after they’ve been agreed upon. There must be agreement on all conditions before settlement can proceed. In some instances, you may have to pay the debt collector until the debt is completely paid.

A debt settlement usually goes like this:

• The borrower informs a debt settlement firm of their financial status.
• It would urge the borrower to cease paying creditors and pay the debt settlement business instead (albeit at a lower payment rate).
• The debt settlement firm would save the borrower’s payments.
• Debt settlement companies would contact the borrower’s creditors after their savings account reached a particular level.
• If the debt settlement discussions are successful, the debt settlement business will keep a percentage of the savings account funds as fees and transfer the rest to the borrower’s creditors.

What Debts Can Be Settled?

You are legally obligated to pay it in full when you incur a debt. A creditor is never required to pay a debt in full. Find out whether your creditors are prepared to work with you to pay off your debt. Debt collectors vary in their willingness to negotiate.

Not all debts can be settled. Secured debts seldom qualify for debt settlement since the creditor can usually reclaim more by selling the asset. Personal loans, credit card debts and payday loans are the most prevalent unsecured debts settled. 

Unsecured creditors are more inclined to settle a debt since they have no collateral to defend them.

Debt Settlement Advantages

1. Reducing the total amount of debt owed

A debt settlement would result in a reduction in the total amount of debt owed. For instance, the borrower owed $50,000 but only paid $44,000.

2. Staying out of debt

The borrower may avoid bankruptcy by settling their debts. Consumer bankruptcy may extend up to 10 years depending on the federal bankruptcy law, having a significant influence on a borrower’s credit score. Furthermore, filing for bankruptcy may have an impact on one’s employment.

Be wary of debt settlement scams.

While many firms work in your best interests, other debt settlement companies are frauds. 

You may prevent scammers by doing the following:

Avoid doing business with firms making false promises. 

Be wary of any debt settlement firms that claim to eliminate your debt and cease debt litigation and collections.

Remember that your creditor is not required to accept a settlement, and some may refuse to cooperate with debt settlement agencies. It is not guaranteed that your debt and associated issues will be resolved.

Do not blindly settle your debt.

If your debt settlement firm demands payment before beginning work, this is a red flag. When it asks for money, read the fine print and make sure you understand what debts you are paying for.

Get all the information relevant to your debts.

It’s a concern if your debt settlement firm doesn’t inform you about the hazards of the debt settlement or the implications of failing to pay your debt collectors. Before giving up your money (or suspending payments), you should be informed of any risks, and it is your debt settlement company’s responsibility to ensure that you are aware of what is at stake.

How can a Rockville debt settlement attorney help me?

Debt settlement is a legal recourse that can help you get out of debt fast without needing to file for bankruptcy. 

If you are searching for debt relief and want to avoid bankruptcy, debt settlement is an effective solution. An experienced debt settlement attorney in Rockville, Maryland, can explain how debt settlement works and help you determine the better way of getting out from under overwhelming debt. 

Here is how a Rockville debt settlement attorney can help you:

1. A Rockville debt settlement lawyer will assess your financial situation and determine whether or not you qualify for debt settlement.
2. Your attorney will then negotiate with your creditors to reduce your overall debt.
3. Your attorney will make sure that these companies do everything correctly and legally. 
4. Your lawyer will set up a payment plan that suits your individual needs.
5. Your attorney will negotiate with creditors threatening to initiate lawsuits against you.
6. Besides helping clients get relief from their debts, a debt settlement attorney can also help you stop receiving harassing phone calls from bill collectors.

Hiring a debt settlement attorney to negotiate on your behalf can make a big difference.

If a mountain of debt is keeping your dreams from coming true, contact Kurland Law Group today for an obligation-free consultation. Consulting our reliable law firm will help you understand your situation and discover your options for sustainable debt relief. In fact, there are no other debt settlement attorneys in Maryland with a better record of getting clients out of debt than Kurland Law Group.

It’s time to take action if you know it’s time to settle your debts.