If you are in need of debt help, seeking out the services of a debt settlement company may seem like a logical choice. When you complete a debt settlement, it can help you avoid paying any large portion of what you owe to your creditors. In this situation, you may be interested in finding out how long the debt settlement process takes and what steps are involved.
Understanding this information can give you the perspective you need to make a decision on whether to pursue this approach.
When You Have a Lump Sum
If you have a lump sum of money to use for a debt settlement, the process will be completed very quickly. Creditors are willing to accept a debt settlement when they can get a lump sum of money to pay off the account. They will then write off the rest of the amount that you owe and you will not be responsible for paying that portion. If you have a lump sum ready to offer and the creditor accepts, the settlement process can be completed in a few days. You or your debt settlement lawyer will contact the creditor and negotiate the settlement.
This can usually be done in one session, depending on whether the creditor is willing to work with you. At that point, you will need to send payment to the creditor. It may take a few days to get the payment to the creditor and have it processed. After the payment is processed, the creditor will record the payment and finalize your account. In this situation, you can typically get the whole thing handled fairly fast.
When You Don't Have a Lump Sum
In some situations, you may not have a lump sum to offer to the creditor. When this happens, the process can take a little bit longer to complete. If you seek out the services of a debt settlement lawyer, he may recommend setting up a savings account and putting aside a sum of money every month to go toward the debt settlement. Once the account reaches a certain point, then the debt settlement lawyer can negotiate a settlement with your creditors. While you are saving the money, the debt help company or lawyer may recommend that you stop paying your bill in the meantime. Then the creditor will be more likely to accept the debt settlement when it is offered.
If you use this approach to pay off your debt, it could take several months or years to build up enough money to settle the debt. The amount of time that it will take depends on how long it will take you to save the necessary money. It also varies depending on how much money you can set aside every month.
If your debt is astronomical and it would take you many years to come up with enough money to settle, a debt help lawyer can advise as to your legal rights regarding creditors and collectors. If you are represented by a debt settlement attorney all communication from debt collectors and creditors included in the settlement must be sent or directed to your debt help attorney rather than you.
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Article Added on Saturday, June 23, 2012
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