Debt Settlement 101

Jul 7, 2015 | Finance

Debt Settlement can be an extremely effective Debt Relief tool for any person that has Credit Card debt and does not have the ability to pay back the balance in full. Creditors will often time offer settlements to delinquent account holders in an attempt to recover some of the balance due rather than take a potential full loss if the account holder decides to file for Bankruptcy. While the premise of Debt Settlement is pretty straight forward, negotiating a Debt Settlement and executing it can be a bit more challenging. Here are some useful tips when looking to settle your debt.

  • Not all Credit Card companies offer the same settlement terms. Each Creditor and Collector will have different guidelines in regards to settlement and it will vary.
  • Settlement Percentages offered by Creditors and Collectors are calculated based on your card spending history. IE, cash advances, how much of the charges you paid back, how recent the charges were, etc.
  • Collection Agencies have federal and state regulations they must adhere to when collecting on debt. The FDCPA (Fair Debt Collections Practices Act) outlines how you as a consumer are protected and what creditors can and cannot do.
  • Any terms negotiated should be documented in writing and funds should not be paid to any creditor or collection agency without such documentation in hand. This ensures you have proof that your settlement is legitimate should it ever be challenged in the future.

Hopefully the tips above were helpful to anyone looking for information on Debt Settlement. Brownstone Law Group offers debt consolidation and negotiation programs that are designed to help consumers get out of debt in a reasonable amount of time without filing for Bankruptcy. We have years of experience and have helped many people become debt free. If you are struggling with Debt and want to learn about your options to become debt free, give us a call for a free consultation at (888) 853-8871 or visit our website at

This article has been reviewed and approved by Thomas A. Moore, managing attorney Brownstone Law Group, PC. California Bar # 148698. This article is for informational purposes only, does not provide legal advice of any kind or form any type of attorney/client relationship. This article was published on


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The information contained on this website is not to be construed as legal advice. It is not intended to solicit or form an attorney-client relationship. Debt settlement, debt negotiation or debt resolution programs (the “Program”) are not an offer or promise to lend money and neither they nor Brownstone Law Group, PC. (“BLG”) assume or pay any consumer debt or make monthly payments. BLG is not affiliated with any lending institution, bank, collection agency or collection law firm. Individual Program results may vary and are based on but not limited to the ability of clients to save funds and successfully complete their Program terms and conditions, the amount and type of debts and creditors, history of accounts and financial standing of clients. Past performances of Clients do not guarantee future results for others and BLG does not guarantee that debts enrolled in the Program will be settled at a specific percentage or amount, or that you will be debt free within a specific time period. Not all Clients complete our Program for a variety of reasons including but not limited to an inability to save sufficient funds. The Program may have an adverse impact on Clients credit. Our services may not be available in all states please check with BLG for state eligibility. Please contact a tax professional to discuss potential tax consequences of settling debt. This website and the content of this website has been reviewed and approved by Thomas A. Moore the managing partner of BLG who’s mailing address is PO Box 629, Orange CA 92856-6629. Copyright Brownstone Law Group, PC. All rights reserved. Unauthorized use of the BLG website includes but is not limited to content copying, duplicating or replicating is strictly prohibited. Furthermore, use of this website is subject to the Terms of use.

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