Debt settlement, also known as debt arbitration, debt negotiation or credit settlement, is an approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as 'payment in full'. As long as consumers continue to make minimum monthly payments, creditors will not negotiate a reduced balance. However, when payments stop, balances continue to grow because of late fees and ongoing interest.

As a consumer, you can arrange your own settlements by using advice found on web sites or hire a lawyer to act for you. With our extensive experience providing New Jersey bankruptcy debt relief, you can confidently contact us with your debt settlement needs.

How Debt Settlement Works

Essentially, debt settlement is the process of negotiating with creditors to reduce overall debts in exchange for a lump sum payment. A successful settlement occurs when the creditor agrees to forgive a percentage of total account balance. Only unsecured debts not secured by real assets like homes or autos can be settled. Unsecured debts include medical bills and credit card debts - not student loans, auto financing or mortgages. For the debtor, this makes sense -- they avoid the stigma and intrusive court-mandated controls of bankruptcy while still lowering their debt balances, sometimes by more than 50%. Whereas, for the creditor, they regain trust that the borrower intends to pay back what he can of the loans and not file bankruptcy -- in which case, the creditor risks losing all monies owed.

The Positives of Debt Settlement

With the current economic crisis, more and more credit card companies may be willing to settle existing credit card debts rather than add to their already large written off bad debt. Let us help settle your debt today.

We serve all of South Jersey, including Camden County, Burlington County, Gloucester County, Mercer County, Eastern Pennsylvania and Atlantic County, and surrounding areas in New Jersey.

*Free consultation for individuals and most small businesses. A follow up meeting may be required. We reserve the right to charge for consultations involving review of existing cases, divorces or litigations.

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