Tag Archives: debt settlement

Bankruptcy vs. Debt Settlement: Which Should I Choose?

Kansas City Bankruptcy Attorneys Explain Your Options Defaulting on debts can lead to multiple negative consequences. Your wages could be garnished. Creditors could repossess your secured debts. In other cases, you could enter a debt spiral that affects your finances for years to come. If you are experiencing a debt crisis, then you should explore options for resolving your situation as soon as possible. The longer you wait to resolve your debts, the longer it will take to get your finances back on track. Debt settlement and bankruptcy are two debt relief options you could consider. However, these are two very different options. You should consider the differences between bankruptcy and debt settlement before making your decision and very closely look at any and all fees Debt Settlement companies charge. What Is Debt Settlement? Debt settlement is where you hire a company to work with your creditor to pay less…
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What Does a Debt Settlement Company Actually Do?

Kansas City Bankruptcy Lawyers Explain the High Risks and Low Rewards Debt settlement companies claim they will significantly lessen the amount of money owed through negotiation with credit card companies and other creditors. So how does this actually work? To use a settlement company’s services, you stop making payments on the debt itself. Instead, funds are deposited into an account with the debt settlement company. Those funds are in turn used by the settlement company to pay creditors—and the settlement company itself—only after (or if) a settlement amount has been agreed upon. How Do Debt Settlement Companies Make Money? The settlement company’s fee is usually a percentage of the amount of money paid to settle the debt. However, choosing to stop making payments on a debt means additional interest and fees will continue to accumulate on the account while negotiations are underway. Some credit card companies flatly refuse to deal…
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What Does a Debt Settlement Company Actually Do?

Kansas City Bankruptcy Attorneys Explain the High Risks and Low Rewards Debt settlement companies claim they will significantly lessen the amount of money owed through negotiation with credit card companies and other creditors. So how does this actually work? To use a settlement company’s services, you stop making payments on the debt itself. Instead, funds are deposited into an account with the debt settlement company. Those funds are in turn used by the settlement company to pay creditors—and the settlement company itself—only after (or if) a settlement amount has been agreed upon. How Do Debt Settlement Companies Make Money? Many companies require substantial up-front fees and/or monthly fees to start the process. Additionally, settlement companies’ fees can include a percentage of the amount of money paid to settle the debt. However, choosing to stop making payments on a debt means additional interest and fees will continue to accumulate on the…
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