Settling without filing
Sometimes the right answer is not to file
If you owe a few creditors, have some savings or a lump sum coming, or own little a creditor could take, a settlement can cost less than a bankruptcy.
We write to each creditor or collector on firm letterhead, check that the debt is really theirs and the amount is right, and negotiate a payoff or a payment plan. Every agreement is in writing before you pay anything.
We’ll tell you on the first call if filing would cost you less. Settled debt can count as income at tax time, so we flag that too.
Often a fit when
Two or three creditors, not ten
Nobody has sued you yet
You can pay something now
You filed for bankruptcy recently
How it goes
Letters first, then an offer in writing
- 01
Step 1: We ask for proof
Collectors have to show the debt is theirs and the amount is right.
- 02
Step 2: We make the offer
A lump sum or a plan, based on what you can actually pay.
- 03
Step 3: You approve it
Nothing is agreed without you, and nothing is paid until it’s in writing.
Before you try to settle
Is this the same as a debt settlement company?
No. We don’t hold your money for months or charge a percentage of what you owe. You pay a flat fee per creditor, and you pay the creditor directly.
Will a creditor take less than I owe?
Many will, but none has to. We can’t promise an amount, and we’ll tell you if filing looks like the better way.
What if I’ve already been sued?
Send us the papers right away. There’s a deadline to answer, and a lawsuit changes what makes sense.
Find out if filing or settling costs less
Bring the list of who you owe to a free video call.