Debt Negotiation


Become Debt Free! Here’s How You Can Do Debt Negotiation in Portland, Oregon


Are you feeling overwhelmed because of the unpaid bills? Before you think of filing bankruptcy because of debts, there are different bankruptcy alternatives you can choose from. One of them, Debt Settlement or Debt Negotiation, is one of the best debt solutions. Often the lesser drastic option to settle debts, debt negotiation refers to an agreement between the debtor and creditor to pay back a certain portion of the money they owe.

Through this process, debtors may have the chance to settle their remaining bills with less interest or overall payment. However, debt negotiation can also be a pretty daunting and nerve-wracking experience. Talking and negotiating with your creditors can be pretty tricky. To do this successfully, you must call a reliable debt negotiation attorney in Portland, Oregon, to help you with your case.

A debt negotiation lawyer will help you negotiate your total credit to pay back a portion of the money you owe with little or no interest at all. Creditors sometimes waive off interest, especially credit card loaners, because they are unsecured debt. Meaning they don’t have a perfect lien or collateral to take if you fail to pay your debts. However, sometimes debt negotiation or debt settlement program requires the debtor to pay a big chunk of their debt in a lump sum payment.

How can our Debt Negotiation Attorneys in Portland help you with your debt negotiation and soon get out of debt?

  • Proper negotiation with your creditor/s
  • Help on loan payment restructuring (if available)
  • Help and ensure your rights as a debtor
  • Help prevent debt collection harassment

Make sure that your right as a debtor is not being overlooked or stepped on by your creditors. Consult our debt negotiation attorney today to start with your debt negotiation plans.

What Is Debt Negotiation?


In a debt settlement or debt negotiation, a debtor often negotiates to forgive the interest or the remaining debt problem they owe. This usually works by paying a significant portion of the money to your creditor. Sometimes, debt negotiation can waive off 50% to 70% off of the remaining total balance. Some creditors willingly forgive 50% of the remaining total balance just for the debtor to pay off their debts. This mostly happens because the creditor doesn’t have enough security to get back the money the debtor owes – especially if it is unsecured debt. This is also a much stressful solution compared to when the debtor opts for filing bankruptcy.  

When a debtor files for bankruptcy, an automatic stay will take place. This means that all the creditors will have to stop any collection activities for the debtors until the bankruptcy court lifts the automatic stay.

However, there are also instances where getting a “yes” from your creditor can be challenging. If this is the case, proper negotiation and talking about alternatives is also an excellent way to mitigate the credit problem. Talking and agreeing on other repayment alternatives such as lowering interest rates or reducing the needed monthly payments might work for the debtor and creditor. It is crucial to have a clear discussion with your creditor on what is currently happening in your financial life. 

Things to Remember in Debt Negotiation


You must have a significant amount of cash ready.


When planning for debt negotiation, you must have enough money to pay off your debt. Since a debtor entered debt negotiation because of financial problems, preparing significant cash can be challenging. However, this is a better case solution than filing for bankruptcy or letting your debt pile up to the ceiling.

Beware of scammers and fake debt-negotiation professionals.


Be extra wary of those people who claim that they have enough experience and are working for a debt settlement company. Most are probably scammers or not even professionals, to begin with, and lacks experiences in the right debt management services. Make sure to work with your trusted and experienced debt negotiation attorney in Portland, Oregon.

Avoid making agreements with debt collectors.


Some debtors make an agreement with their debt collectors – which you should avoid. When going under debt negotiation, it is better to speak formally to the creditor or management, not the collectors. 

Credit score.


Because of a poor track record and undergoing debt negotiation,  you might affect your credit score in the future. Credit card companies might also close your account with them permanently. Borrowing money from other credit card companies will also be quite challenging because of your credit report. However, there are plenty of ways to rebuild your credit, and a Portland debt negotiation attorney in Portland can help you with that.

Negotiation Process


To start with the debt negotiation, debtors must contact the credit company first. Together with your debt negotiation attorney in Portland, Oregon, you can make an arrangement to settle the remaining unpaid bills. Setting a percentage of the outstanding account balance due should be agreed upon wisely. You can say that you managed to save a few amounts of money to help settle your account balance, and this is the best amount of cash you can prepare because of your situation.

It is best to negotiate at least 50% off your debt. Creditors usually prefer shaving off less than 50% off your dues, but they might agree to let you off the hook with a higher percentage from your total remaining balance through good negotiation. 

The critical point in negotiation is to explain your financial situation clearly. State that you are in a bad position financially. In this way, the creditor or the lender believes that you can’t pay the total amount and settle for a 50% balance payment. 

Be sure to also get the agreement in writing or a formal legal document. Your debt negotiation attorney will help you with proper documentation. In this way, you will have security if you need valid and legal proof.

Many debtors make a verbal agreement through phone calls with their creditors. Without any legal proof of the debt negotiation, a credit company or lender might claim that the payment was a partial payment of the entire balance and not a settlement.

The payment should be made when the negotiation has been written, and both the creditor and debtor signed into it. Make sure to pay the exact amount and on the date as negotiated and agreed.

Consult a Portland Debt Negotiation Attorney Today!


Whether you want debt relief or want to undergo debt negotiation with your creditor, it is best to seek professional and legal assistance. We at Michael D. O’Brien and Associates P.C offer FREE INITIAL CONSULTATION to start your debt negotiation journey. You can also call our Oregon attorneys at (503) 694-4445 to help you with your case immediately. 

We are proud to be a debt relief agency with nationally-certified consumer bankruptcy attorneys in Oregon! Our reliable bankruptcy attorneys have years of experience handling cases of bankruptcy and non-bankruptcy alternatives. Through this process, we will help you towards a fresh start and financially smarter to avoid bankruptcy and financial freedom.

Make sure that you are well informed of the possible solutions and options for your debt crisis. Call Us Now!

 

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portland bankruptcy attorney logo

FACING COMPLEX DEBT PROBLEMS?

Whether you're dealing with overwhelming debt, stopping foreclosure or repossession proceedings, or looking for a way to protect your assets, our Portland bankruptcy attorneys are here to help you overcome your financial hurdles!

Please be aware that submission of this no-obligation form does not establish an attorney-client relationship. By filling out the form, you agree to receiving emails from our firm regarding your case evaluation and other helpful resources.