Debt Settlement Services In California

California consumers can take advantage of debt settlement services to help them with debt negotiation or debt reduction. Debt settlement is a good solution for consumers who are overwhelmed with credit card debts, medical bills, car payments and other debt. A debt settlement services company can help you by negotiating a reduction of your debt with your creditors. It is an aggressive way to help you get out of debt. You should speak with a credit negotiator or a debt settlement attorney to help you get started with a settlement program to pay off your debts.

California Debt Collection Laws

Every state has debt collection laws that prevent a collection agency from contacting a consumer if they send a Cease and Desist letter and/or a Power of Attorney to a collection agency notifying them that their attorney or other third party is handling the negotiations with their creditor. California has further protections in their state collection laws that prohibit the original creditor from harassing the consumer as well. So California consumers who enter into a debt settlement program have more rights and legal protections against creditors that violate these debt collection laws than consumers in other states. So once you enter into the debt settlement program, you can advise your creditors of the name and contact person at your debt settlement services company and avoid all those annoying and harassing telephone calls from creditors.

How the Program Works?

A debt reduction program works as follows:

A debt negotiator will review your financial information and list of debts and work out an appropriate monthly payment amount for you to save towards a negotiated settlement in an account that you set up and control.
Once you have accumulated enough funds to make a debt reduction offer with your creditors, the debt services company will try and negotiate a debt reduction with your creditors of up to 50% of your current balances. Figure it will take a few months for you to save enough money for your negotiator to start bargaining with.
In California, both a husband and wife are responsible for all debts accumulated during marriage so you should include the debts of your spouse as well in a settlement program.
Most programs are for a period of 3-5 years, which allows you enough time to pay off your reduced debts.
As soon as a settlement has been approved by your creditor, the debt services company will notify you of the percentage of debt that has been reduced. The success depends on each individual’s financial situation and how much the creditor is willing to reduce the debt.
After you pay each account, the debt services company will request that your creditor notify the creditor bureaus that the account is settled or paid.

You will not be able to prevent damage to your credit, but after you are debt free, you can start to rebuild your credit. The debt services company can help you with credit repair and working out a way for you to manage your future debt responsibly.

Speak with an Attorney

A debt settlement attorney can represent you in negotiating with your creditors. Debt settlement attorneys understand consumer laws, and can explain them to you. The attorney is the only person who is legally qualified to provide you with advice.

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