Charles J. Schneider, P.C.certified consumer bankruptcy specialist
forms for your office visit
call today 734-237-1523
Practice Areas Menu In This Section

Proceed carefully when using debt negotiation programs

People who are in debt and seeking a fresh start often decide to negotiate a settlement with their creditors. There are many organizations that say they can help Wayne County consumers with the debt negotiation process. In this blog post, we will take a closer look at one kind of organization in this business.

Debt negotiation programs are also known as DNPs or debt settlement companies. Sometimes they are organized as a for-profit business, other times they are organized as not-for-profit organizations. They usually claim that they can negotiate steep reductions in balances owed to creditors. Many DNPs are legitimate; however, some are a bit sketchy.

DNPs often claim that they can negotiate a consumer's total balance owed to about half of what it was before the debt negotiation process. But many DNPs charge high fees, often linked to the amount of debt that the DNP said it eliminated. This means that some consumers may actually find themselves with more debt when the DNP's fees are added.

Many DNPs also claim that there will be no negative credit implications from the debt negotiation process. But many creditors will not negotiate until a debt is several months past due, which usually means several months of negative reporting to credit bureaus.

It might not be a bad idea to get the opinion of a third party before proceeding with a debt negotiation. Many bankruptcy attorneys can provide their opinion of various DNPs. These attorneys may also be able to provide debt negotiation services themselves, as well as educating consumers about their options with bankruptcy. Those dealing with financial problems should take the time to become fully aware of the options available to them.

No Comments

Leave a comment
Comment Information
  • rating

    Posted by MaryDecember 11, 2015

    "I am overwhelmed by your response to my call, even 10 years after my bankruptcy was discharged. You have more knowledge and expertise than I could have imagined. Because of you, my fears have been put to rest. For that, I'm so very grateful. Thank you many times over. "

  • rating

    Posted by ClientOctober 26, 2010

    "... I was extremely impressed with Charles' understanding of the bankruptcy laws to the extent that I felt certain that my best interests were always at the forefront. "

  • rating

    Posted by MarleneJanuary 8, 2014

    He helped me thru my 1st bankruptcy and now the second. I had no idea what to expect , but they kept me informed and answered all my questions. Mr. Schneider is the most experienced and knowledgeable lawyer I have ever met. If you have to file call this attorney first!

  • Avvo Rating 10.0 superb | Top Attorney Bankruptcy
  • Rated By Super Lawyers Charles J. Schneider | visit superlawyers.com | super lawyers 2011-2015
  • Avvo Ratting 10.0 superb Top attorney chapter 7
  • Avvo clients' choice 2014 | chapter 7
  • ICLE CONTRIBUTOR
  • American board of certification | certified consumer bankruptcy specialist
  • AV lexisNexis Martindale-Hubbell Peer Review Rated for ethical standards and legal ability
email us for a response

Let us evaluate your situation
and identify solutions

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy