Moore Legal Center

800.555.1212

 

FAQ’s

What is debt resolution? Debt resolution is when your creditor agrees to accept less than you owe to satisfy your debt. This process usually involves negotiations between the consumer and his or her creditors to settle unsecured debt for less than the full balance. These negotiations are often conducted on behalf of the consumer by a professional debt negotiator or attorney.

Where does a debt resolution company fit into my debt relief goals? Debt resolution can be an outstanding debt relief option for people who cannot afford Consumer Credit Counseling but also want to avoid bankruptcy. A debt resolution company will customize a savings plan that fits your financial situation and help you set-aside funds to pay off settlements. Due to a lack of emotional involvement with your accounts, you can be sure that their negotiating position is objective and effective. When you hire a debt resolution to negotiate on your behalf, you normally deposit money into a savings account each month. Once enough money builds up in your savings account, the debt resolution company uses those funds to obtain a settlement with your creditors for less than the outstanding balance.

How does a debt resolution company fund its operations? Unlike many debt relief options that can sometimes be funded by the very creditors you are trying to settle with, debt resolution professional payment plans typically operate with its consumer’s best interest in mind. As a result of this arrangement, the debt resolution company funds its operations by charging its clients fees for the professional services performed by the company.

How much money can debt resolution save me? Each debt resolution client is unique and your results may vary. Settlement savings may depend on who your creditor is or what type of debt you have. Settling your debt for 50% of the entire balance owed is not uncommon and most debt resolution companies negotiate for percentages somewhere between 20% and 60%.