Debt Settlement Attorney in McAllen, Texas

Life's financial curveballs can strike unexpectedly and prevent you from settling debts or meeting your other financial obligations. When overwhelmed with debts, debt settlement is among the promising options to help you achieve financial relief. This involves working with a debt settlement company that will reach out to your creditors on your behalf and help negotiate a reduced payment. 

If you're experiencing financial adversity and considering debt settlement, consulting with an experienced Texas debt settlement attorney is crucial for detailed guidance. At Oliva Law Bankruptcy, we offer knowledgeable guidance and reliable advocacy to clients in the legal matters of debt relief. Our trusted legal team will be available to discuss your unique situation, enlighten you about the debt settlement process, and explore your available legal options to achieve debt relief.

Oliva Law Bankruptcy proudly serves clients across McAllen, Texas, and the surrounding areas of Brownsville, Harlingen, Corpus Christi, and Laredo.

What Is Debt Settlement?

Debt settlement – also known as debt adjustment or debt relief – can be described as the process of settling debts for less than the actual amount owed by offering a lump-sum payment to the creditor. It involves an agreement between the consumer (the debtor) and the creditor to reduce the debt balance and waive other fees. 

Through debt relief, you will be able to settle your debts for less than the total amount you owe by offering significant lump sums to the creditor. Also, you can hire a debt settlement company to get in touch with your creditor on your behalf and help negotiate a reduced payment.

Secured Debt vs. Unsecured Debt

Unsecured debt includes money borrowed without collateral. Examples are personal loans, student loans, credit cards, and medical bills. Conversely, a secured debt involves money borrowed by putting up collateral. Examples are car loans, mortgages, and home equity loans.

If you're unable to pay your secured debts, the lender can collect your assets. In contrast, creditors cannot claim your assets with unsecured debts. However, you can expect continuous calls from debt collectors, late fees, and increased interest rates. Also, your credit score will start dropping. Thankfully, debt settlement offers a possible option to resolve your debt burden.

How Does Debt Settlement Affect Your Credit?

Unknown to many consumers, debt settlement can affect your credit score. The debt settlement company will ask you to stop making payments on your bills while they negotiate with the creditor. Rather, you will be paying into a savings account. Unfortunately, such missed payments will reflect on your credit history.

Also, since you will be resolving your debts for less than the actual amount – you won't be paying your debts fully – debt settlement will eventually damage your credit score. The debt settlement information will stay on your credit report for up to seven years.

When Is It a Good Option?

Debt settlement may be a good option when:

• You want to pay off your debts fast. Should your debt settlement program be successful, you can resolve your debts swiftly.

• You want to get out of debt quickly and not file for bankruptcy.

• You want to resolve your debts for a reduced amount compared to what you owe.

An experienced attorney can evaluate your unique financial situation, determine whether debt settlement is right for you, and enlighten you about your other alternatives to achieve debt relief.

Work With an Experienced Attorney for Reliable Legal Guidance

Repaying your accumulated debts can be difficult. When you have more debts than you can pay, getting someone to help negotiate with the creditor on your behalf can help reduce the burden. However, before working with a debt settlement company, you need to understand the benefits and drawbacks of debt adjustment to avoid possible pitfalls. Therefore, consulting with an experienced debt relief attorney is important for detailed guidance and to explore your possible options.

At Oliva Law Bankruptcy, we advise and guide clients in debt relief and bankruptcy-related matters. As your legal counsel, we can:

• Evaluate your financial situation.

• Enlighten you about your available options to achieve debt relief.

• Enlighten you about the benefits and drawbacks of repaying debts through debt settlement.

• Help determine whether debt settlement is good for you.

• Help determine the best course of action for your unique financial situation.

Our trusted legal team will walk you through the legal phases involved in the debt settlement process from start to finish and help you achieve the debt relief you deserve.