Negotiations With Creditors We Will Guide You to a Debt Free Solution

Negotiations With Creditors in Howell

We Serve Residents of Jackson Township & the Surrounding Areas

For some people and businesses, bankruptcy is the answer. For others, it is not. There are many circumstances in which the filing of a bankruptcy case may not be the best option. For example, you may have assets that will be at risk if you file for bankruptcy or you may have too much equity in your home. You may have certain debt that will not be discharged in bankruptcy or you may simply not qualify for bankruptcy relief. In those instances, a better option may be to negotiate with your creditors.

Can I Negotiate with My Creditors?

You can usually negotiate with your creditors. Depending on your circumstances, whether directly or through an attorney, negotiating to settle your outstanding obligations for less than the full amount due is an option that most people can take. Through this process, you may be able to change the terms from the original agreement with the creditor, to terms that are more workable for you.

Some creditors are willing to accept a lesser amount, if you are able to make a lump sum payment in the near future. Some creditors are willing to accept as little as 40% - 50% of your original debt. Others may be willing to reduce the amount of the monthly payment or to reduce the interest rate – either on a permanent basis or temporarily. The longer that your account has been in default, the more likely the creditor is to settle with you – and for a lesser sum.

There is nothing that requires a creditor to work with you. However, many creditors understand that entertaining settlement offers and making your repayment terms more manageable for you, increases their chances of receiving payment. For this reason, creditors are often willing to work with you.

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What Is a Loan Workout?

A loan workout is when you, the borrower, restructures an already existing loan agreement. This is an alternative to filing bankruptcy. When you default on a loan, usually by falling behind on payments, you can reach out to the lender to try to work things out, so that the lender does not take any collection action against you.

You ordinarily begin by explaining the circumstances that caused the default and then proposing a reasonable plan to put the loan back in good standing. Sometimes the terms of loan are changed, either temporarily or permanently; other times past due amounts might be put on the “back end” of the loan.

Under any loan workout scenario, you must gain the consent of the lender. Often the parties will engage in quite a bit of discussion, negotiation, and exchange of documents, prior to a settlement being reached. Even if your attempt at a loan workout is not successful, there are usually no negative consequences for trying.

Schedule your consultation with our skilled attorney by calling (732) 858-0071 or filling out our online form.

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Our Client Reviews
  • “Highly qualified, professional, personable, and a real pleasure and privilege to work alongside.”

    - DT
  • “She makes sure you thoroughly understand all of your options and puts you at ease.”

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  • “They made an extremely stressful situation seem a lot easier than expected.”

    - Sandra K.

Why Our Clients Continue To Make Us Their First Choice

  • Over 20 years of experience.

    Vera has been practicing law and bankruptcy since 1996. She genuinely wants to help find a solution to the challenges that clients face when they fall behind on their finances.

  • Accessible & personalized attention.

    At our firm, clients work directly with attorney Vera. It is key that every client receives one on one communication and attention so she can find a solution that works. No two cases are the same.

  • Award winning & trusted.

    We have been recognized in our community and beyond for our exceptional legal practice. Our awards include Monmouth County's Top Lawyers 2018 and 2020 Top 100 Magazine.

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