Bankruptcy is an option many individuals now consider as they feel they are overwhelmed by debt, but for many, there are other options that won’t follow them for life. A debt settlement lawyer works with individuals to offer a cash settlement at a fraction of what is owed, and in most cases this amount is anywhere between 20 and 50 percent of the total amount owed. The percentage varies based on a range of factors, including the age of the debt and the debtor’s overall financial situation. Creditors aren’t required to accept a settlement, but many will do so knowing they won’t get their money any other way.

When negotiating with creditors, debtors need to determine how much they can pay. Some creditors allow a payment plan to be established, but others demand the payment in full. Once an agreement has been reached, the lawyer needs to review any documents to ensure the debtor understands what he or she is agreeing to. A person may make a lump sum payment only to have the creditor come after them for the remaining amount.

This process can take time and be very frustrating to the debtor, which explains why many obtain the help of a debt settlement lawyer. Debt settlement is a great option since it allows the individual to avoid bankruptcy. Some debtors won’t be eligible for chapter 7 and others find they don’t qualify for chapter 13. In addition, chapter 11 bankruptcy filings tend to be too complicated and costly for the average consumer. Although it does take longer for the person’s credit to recover with debt settlement than with bankruptcy, individuals may feel better knowing they attempted to pay their debt rather than just walking away.

Anyone considering bankruptcy or debt settlement should visit to learn about the advantages and disadvantages of both bankruptcy and debt settlement, which makes it easier to determine which option is right for their unique situation. While on the site, be sure to request more information or set up a consultation. Debt relief is available for those who need it, it’s simply a matter of determining which option is the best at any given time.

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