Illinois Debt Negotiations Attorneys
As a result of the economic recession, many Illinois residents are in a financial crunch. With mounting debt, some are facing aggressive collection calls, garnished wages, liens on assets, and home foreclosure. For this reason, in recent years there has also been an increase in debt settlements across the country, including in Illinois. Although filing for bankruptcy may be an option to resolve an individual’s debt, many are now considering debt settlement as an option. Through debt settlement, an individual is able to reduce or eliminate his or her debts while also resolving any debts on credit reports that could infringe on credit scores and prevent the individual from receiving loans, mortgages, and other financial assistance options.
When debt settlement may be the best option
In Illinois, one may consider debt settlement if:
- They owe $7,500 or more in debt such as a credit card or mortgage
- They are unable to make minimum payments on their outstanding debt
- The outstanding balance on the debt is growing
- There are no other possible options for monetary relief
Selecting a debt negotiation settlement Firm
If debt negotiation settlement is the most viable option for an individual, the next step in settling the unmanageable debt is selecting a debt settlement company. When selecting a debt settlement Firm it is important to consider the Firm:
- Has experience with debt settlement negotiation processes
- Has a history in debt settlements with past clients with positive results
- Has been established in the industry
The negotiation process
Once a debt settlement company has been selected, the negotiation process begins. It is important to make sure that all communications with the debt settlement company is in writing. This includes, but is not limited to:
- Correspondence (such as emails, mailed letters)
- Suggested terms of the agreement
- The actual agreement
Once the terms of the debt settlement have been agreed upon, both parties to the contract (the debtor and the company) will sign the agreement. The debtor will then make payments as required. Once the required amount is paid off, the creditor company will declare the debt as settled.
Judgments on Debt Collections
Under Illinois law, a judgment in favor of a creditor requires the debtor to pay the creditor a specified amount. This debt may be collected through the debtor’s assets, however there are some exemptions to what may be collected such as:
- Worker’s compensation
- Social Security
- Life insurance policies
Are you having financial difficulties with outstanding debts?
If you are suffering with outstanding financial debts and are considering bankruptcy or debt settlement, it is important that you seek legal guidance. Financial laws are complex, involving both federal and state statutes, so it is best to have an experienced bankruptcy attorney to assess your financial situation. The lawyers at Newland & Newland LLP are experienced debt negotiators with the expertise and knowledge to assist you in addressing your financial difficulties. Contact our firm today to schedule your consultation.