What Are the Benefits of Debt Negotiation?
Debt negotiation can be an attractive alternative for debtors that do not want to declare bankruptcy.
Some of the advantages compared to bankruptcy include:
- Unlike bankruptcy, it does not require a court filing or financial counseling.
- You can pick or choose the debts that will be included.
- A debt negotiator can alter payment periods, amounts, or facilitate forgiveness of large amounts of debt.
However, debt negotiation generally requires that you have a stable income; large enough to pay both the essential bills and debt settlement payments.
Be Careful When Choosing a Company
Multiple companies offer these services in the State of Hawaii; however, the law limits those who can legally operate here.
Debt negotiation services are prohibited unless the negotiator is:
- A state licensed attorney
- Regular full-time employee of the debtor
- Acting pursuant to an order or judgment
- A nonprofit or charitable corporation
Any debt negotiator illegally providing the service is subject to fines up to $500; imprisonment up to 6 months; or both. Further, a debtor may recover all sums paid to the debt negotiator that are not disbursed to the creditors.
Learn More About Your Debt Relief Options
Blake Goodman, P.C. is a company owned and operated by State of Hawaii licensed attorneys. Our status as one of the state’s largest bankruptcy filers puts creditors on notice that you could file bankruptcy at any point. This works to the debtors’ advantage because creditors worried about their ability to collect are more willing to accept less in a debt settlement than what they are owed.