Debt settlement has proven to be a good alternative to bankruptcy for many small businesses and individuals. In a debt settlement, an arrangement can be made with creditors to pay off debt at a lower amount than is actually owed.
Most often, these agreements include the waiving of interest, late fees, and penalties. Many creditors will also take less on the principal balance.
But why will creditors take less? Creditors do not want to get paid nothing (as is the result in a Chapter 7 bankruptcy). The old saying applies: “half a loaf is better than none”.
In most cases, the debt is settled at 50% of the original amount, or less. Some examples of debt that can be negotiated and settled are:
- Credit cards
- Medical bills
- State and federal taxes
- Second mortgages
- SBA Loans
- Equipment loans
While we handle your creditors, they won’t be harassing you. And you may just get a good night’s sleep at last. So call Mike Norris & Associates today at (317) 266-8888 for a consultation, and evaluate if debt settlement is right for you or if other options should be considered.
Note: We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.