Philadelphia Debt Negotiation Attorney | Debt Negotiation Lawyer Near You
Are you struggling to make minimum payments on your credit obligations? Are you facing relentless harassment calls from debt collectors? If you’re unsure how to alleviate your financial stress, you’re not alone. Hundreds of hard-working Philadelphians grapple with debt every day. Due to a relatively low average wage in the area, many still may not meet the demands of creditors even with a steady income.
As you navigate your financial future, it’s important to understand all the options available to you. Bankruptcy can be a viable solution, but there may be another choice you haven’t yet considered that better suits your needs: debt negotiation.
Read on to learn more about the advantages of debt negotiation, and learn how a debt negotiation attorney can help you stop creditor harassment.
The Reality of Debt in Philadelphia
One of the oldest cities in the country, Philadelphia has certainly earned its place as a hub for financial, educational, and cultural growth. In fact, it’s home to numerous fortune 1000 companies as well as over 80 different centers for higher education. Because of all this, it’s not hard to see why Philadelphia would attract people who are searching for opportunities.
However, not all Philadelphia citizens have yet been able to grab a chunk of this prosperity. About 19% of the population in the Philadelphia area is hovering below the poverty line, according to the United States Census Bureau. This overwhelming disparity may be due to a drop in average income. As of May 2020, Philadelphia had the lowest minimum wage among U.S. cities, coming in at $7.25 compared to Seattle’s whopping $16.39.
All this means that, even if you have a secure monthly income, you still might be finding it difficult to cover the minimum payments on your credit obligations. After factoring in the rest of your cost-of-living expenses in an area with a rather high rate for total rent per month and monthly mortgage payments, meeting the intense demands of debt collectors may simply be impossible. Stack the stress of managing constant calls and emails from those debt collectors on top, and people can quickly start to feel isolated and overwhelmed.
If you find yourself in this situation, debt negotiation may be an option for you to get your finances back on track.
What is Debt Negotiation?
Debt negotiation is a viable alternative to other debt solutions like bankruptcy. Filing for bankruptcy, while perhaps the fastest route out of debt, can have a massive negative impact on your future credit. There are two types of bankruptcy, Chapter 7 and Chapter 13. Chapter 7 bankruptcy completely clears your debt, while Chapter 13 allows you to establish a repayment plan over the course of a few years.
Either of these options may be the right solution in certain circumstances. However, when you file for any form of bankruptcy, it will remain on your credit for up to 10 years. This may prevent you from purchasing a home, applying for a loan, or even getting a new credit card. If you can’t afford to give up these prospects, debt negotiation can be a better alternative for you.
Unlike bankruptcy, debt negotiation will not have as much of a negative effect on your long-term credit. In fact, in most cases, it even allows you to pay less than what you actually owe. During debt settlement, you and your debt negotiation attorney work with your debt collectors to reach a more manageable lump-sum payment or repayment plan.
You may be wondering why creditors would ever agree to allow you to pay less than what you owe. However, if you file for bankruptcy, you can avoid payment altogether. In the case of debt negotiation, they can still receive at least a partial amount of what you owe as opposed to nothing at all. For this reason, many debt collectors are willing to enter into negotiations.
Advantages of Debt Negotiation
So, what are the advantages of choosing debt negotiation? Most obviously, there is the fact that you very well may end up paying less than what you owe. So, if you can afford to make the payment without sacrificing too much on your other expenses, it may be worth it to rid yourself of the burden all at once. Not to mention, you can be free of your debt much sooner than with other choices, even if you accept a repayment plan. Repayment plans, in this case, typically take anywhere from 2 to 4 years.
Debt negotiation may also have less impact on your credit than other alternatives like bankruptcy. Filing for bankruptcy can, unfortunately, stick with you for a lifetime. It impedes any financial decisions affected by your credit for up to 10 years. Then, even after the record is removed from your credit report, some employers may still ask you whether or not you have ever filed for bankruptcy in the past. This can negatively affect your job prospects and other life advancement opportunities.
With debt negotiation, you may be able to put an immediate stop to creditor harassment as well. Once you have reached a settlement or made your lump-sum payment, debt collectors can no longer call or harass you. For many, this is one of the most important advantages of negotiation. It provides relief to those who may be feeling overwhelmed and may greatly reduce the sense of financial stress on you and your loved ones.
You may not be aware that there is also the possibility of being sued for your debt. Though this usually only happens in extreme cases, some credit card companies will choose to pursue a lawsuit. By engaging in debt negotiation early on with creditors, you can avoid reaching this point of contention and also prove that you are responsibly taking charge of your finances. This prevents any claims of negligence and builds a stronger case for you in the unlikely event of litigation.
In short, debt negotiation may be the right option for you in any of the following circumstances:
- Your debt payments exceed your monthly income by 20% or more.
- You have filed for bankruptcy in the past.
- Your debt collectors are willing to negotiate your payments down to a smaller amount.
- You have the means to make a lump-sum payment while still maintaining your other expenses.
- You need to avoid having a
- bankruptcy on your credit report for future financial concerns, such as buying a house, taking out a loan, etc.
How Our Attorneys Can Help You
No matter whether you end up choosing debt negotiation or bankruptcy, you should have an attorney on your side. With an experienced debt negotiation attorney looking after your best interest, you may find it is much easier to deal with debt collectors. Your attorney can make sure that you are aware of your rights as an individual as well as what debt collectors can and cannot legally ask of you. After all, taking action is the best way to put a stop to the constant harassment once and for all.
At Sadek & Cooper Law Offices, we understand the immense stress of dealing with the non-stop harassment of debt collectors. We believe you should never have to endure that stress alone. Our attorneys are prepared to help you shoulder the weight of your financial crisis and put a stop to relentless collection calls. With years of experience working with people in the Philadelphia region, we know the unique struggles of the area and can guide you toward the right financial decision to best fit your current and future circumstances.
Not only do we have a wealth of knowledge when it comes to debt settlement, but our team of lawyers also has a deep understanding of both Chapter 7 and Chapter 13 bankruptcy. Let us use our experience to assess the options and develop the most effective strategy for handling your financial concerns. You can rest assured that our attorneys will work to protect your best interests at all times and be there at any moment of the day to address your questions or concerns as they arise.
Call our office today at 215-545-0008 to set up a completely confidential consultation with an experienced debt negotiation lawyer in Philadelphia. We look forward to helping you get the fresh start you need to take back control of your life and your finances.