Is the bank required to accept a settlement?
No, creditors are generally not required to offer nor accept a settlement proposal. However, many lenders will accept settlement offers and even encourage borrowers to settle past due accounts.
If they are garnishing my wages can I still do debt settlement?
A wage garnishment does not necessarily prevent you from settlement. However, garnishment makes negotiations difficult because the bank may not have incentive to accept less money. Generally, it is best to dismiss a garnishment before attempting debt settlement.
How much will have to pay back?
Each creditor will have their own rules for settlement. Many banks are willing to accept as low as 10% of the balance, while other banks will require a much higher percentage.
Do I need a lawyer for debt settlement?
A lawyer can be very helpful, but it is not a requirement. We suggest you consult with an attorney to learn more about your rights and whether an attorney should be retained.
