Ohio Debt Settlement

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Ohio Debt Settlement Suggestions on How to Settle Your Debts if you are an Ohio Resident

dangers-of-debt-settlement3 Questions Ohio Debtors Should Ask

Most reasonable creditors would rather have something than nothing. Many will accept a smaller amount than owed, and report your debt to credit bureaus as settled. Balances will show paid, but the late payments typically remain. Creditors despise this process, which lawyers refer to as “satisfaction and accord.”

Until they receive good evidence they probably can’t get anything else out of you, they will likely refrain from negotiating, preferring instead to wait until you are drastically behind and they’re good and sure you’re not going to pay. Debt settlement is legal, and may be a good resolution for debtors looking to avoid bankruptcy.

These are the three basic debt settlement options for you as an Ohio resident: Hire a company to help, do it yourself, or have your lawyer evaluate the situation and attempt debt settlement prior to seeking bankruptcy protection on your behalf.  (An Ohio Debt Settlement Attorney )

1. Debt Settlement Outfits?

  • In repayment programs, a company settles the debt for you, but that company takes a “vig” or premium for the service, which it charges on top of the payment.
  • This means you settle for more than you had to to pay the company for its help.
  • Worse, many of the companies are completely crooked.
  • The Federal Trade Commission spends plenty of time, effort and money chasing these jokers down after they’ve taken money for negotiations they never perform.
  • Worse yet, the debt settlement companies don’t do anything to stop collection calls–debtors pay upfront for the help, sometimes get none at all, and get all the continuing headaches.
  • In one recent FTC case, the Commission found only 2% of clients completed the company’s program, half dropped out, and participants paid an average of $1,500. Um, no.

2. DIY?

  • Once you’re well behind on your bills, there’s no reason you can’t settle debts on your own.
  • In addition, many creditors will make offers in settlement to you.
  • Of course, if you’re in financial distress, chances are you don’t have the cash flow to make significant, one-time lump payments on accounts you hold that are in arrears.

3. Bankruptcy Option?

  • At that point, some type of consumer bankruptcy is likely to be a good option.
  • When you speak with an attorney, he or she will evaluate your position and may offer to negotiate a settlement with your creditors, especially if that option would be more advantageous for you than filing bankruptcy.
  • If such efforts would be futile, your experienced, competent attorney will recognize that, and will likely make a formal recommendation that you consider some sort of protection under the Bankruptcy laws.
  • Talk to Ohio Debt Settlement Attorney