Bankruptcy is a great tool for eliminating debt, but it isn’t right for everyone and every situation. When you have a little bit of money left in the bank, and you only have a few debts to pay off, you may consider utilizing the services of a bankruptcy attorney who specializes in debt negotiation. With his or her help you could spend pennies on the dollar and completely eliminate your debts without having to file for bankruptcy. And unlike bankruptcy, you’ll also get to pick and choose which debts you eliminate.

How does it work?

Once you hire a bankruptcy attorney to negotiate your debt, he or she will work quickly to negotiate a settlement with each of your creditors. Typically when a creditor is contacted by an attorney directly, they are persuaded to settle quickly and for a reasonable amount. Your attorney can use his or her clout as a professional to convince creditors to settle for much less money than you could on your own. 

There is another advantage a bankruptcy attorney has when dealing with creditors. He or she does this kind of negotiation on a daily basis. Your attorney probably has a personal relationship with most if not all of the collection agencies who you owe money to. Consequently, he or she will know the nuances of dealing with each agency. This will help get the debts settled for the smallest amount possible with each creditor.  

Is debt negotiation right for me?

Debt negotiation may be the right choice for you when you only have a few debts to pay off, and you either don’t qualify for bankruptcy, or you don’t feel like bankruptcy is the best option for you. In order for debt negotiation to work, you will have to have at least some money available to make payments towards the debts. But the amount needed will be far less than the total amount you owe. Other than that, your bankruptcy attorney will take care of the rest of the work for you.