At times, clients have only one or two creditors creating problems for them and they need debt negotiations rather than a bankruptcy which is more serious.
In these situations, it may be more appropriate to negotiate with creditors for one of the following outcomes:
- Lump sum settlements for a portion of the indebtedness;
- Develop and set up affordable payment plans on the few credit cards where there are pending lawsuits and the heat is on; or
- Facilitate the return of collateral and turnover bank accounts in the closure of business.
Debt Negotiations can be an option for clients who are not ready to file bankruptcy and to see if their debt issues with creditors can be resolved without court intervention. This option is most beneficial for clients who have less than 7 credit cards, when the total amount of the credit card debt is less than the clients' annual income, and where the clients have access to friends or family members who will assist them with lump sum settlements.