2. How does debt settlement and negotiation work?
Creditors are contacted directly by a licensed consumer law attorney and informed that they now represent you in this matter. Initially an audit is done of the creditor to insure that no laws were broken and that the debt is legal and valid. This process also reviews the accounting practices of the creditor and determines if any fees were charged that were not properly disclosed.
Once a month on a date that you choose your payment is debited from
your financial account and placed in a third party special purpose
account. As this account grows, your attorney will contact the creditor
directly starting with the smallest debt and negotiate a reduced amount
for repayment.
Once this has been properly negotiated and agreed
upon by both parties, your attorney will contact you and inform you of
the settlement amount. With your approval the money is sent to the
creditor and the account now is paid with a zero balance. This process
is done again and again until all accounts are paid and the program is
completed.