Wink & Wink, the Premier Bankruptcy and Debt Settlement Team in Denver, Knows the Law
When you find yourself in debt that you are unable to repay, you may turn to a seemingly helpful resource for answers: the Internet. Once there, you’ll notice that there are more than a few debt consolidation companies trying to help you settle your debt. These companies range from brand names that you’ve heard of, to small companies whose websites and credibility don’t quite seem up to par.
Soon, the options become overwhelming. You feel your pulse and temperature rising. Some of the claims out there may even be enticing. But you can’t be sure. Simply reading on the Internet isn’t enough to get a full picture, and you certainly don’t want to make the wrong choice out of desperation.
This is where a local, reputable, debt settlement attorney can come in handy. Imagine being able to cut through all of the noise online and hear the truth that doesn’t require big advertisements and too-good-to-be-true promises. Imagine a leading debt settlement attorney explaining why debt consolidation is misleading and taking the time to develop a strategy and approach that works for your particular situation.
With Wink & Wink – Denver’s premier bankruptcy attorneys – you’re no longer a target of misleading consolidation companies – and your story is no longer invisible. We will work closely with you to ensure your particular circumstances are taken into consideration, and that we find a satisfactory resolution to your debt that you understand and enables you to escape the hamster wheel of debt.
Why Should I Be Wary of Debt Consolidation Companies?
Debt consolidation may be tempting when you have debt from medical bills or credit cards that you are unable to pay. Although partnering with them may seem like a good deal, you want to be sure you understand what debt consolidation companies are offering – and where they may be misleading you.
First, keep in mind that debt consolidation companies are typically not consolidating your debt with them. Rather, they are settling your debt. There is a significant difference between consolidation and settlement. Debt consolidation entails taking a new loan with a new lender. That new loan pays off your existing creditors and, in this way, can consolidate your debt from a number of creditors and accounts into one account. However, you’re still going to be making a debt payment with interest to a single, new creditor.
While this may seem attractive to you in the short term because you now have one simple monthly payment, you may not be able to pay this off either. Think of it this way: if you’re unable to pay your debt now, you will likely not be able to pay a consolidated debt payment either.
Debt settlement entails stopping payments to your creditors for a period of months or years and then settling with them for less than you owe. This is the service most debt consolidation companies provide. Unfortunately, they are often very misleading about what they do. In particular, they will tell you that they’ve made a deal with your creditors because of their partnerships and connections. This is untrue. While it is true that stopping payments on your debt will often result in the creditor becoming willing to accept less than is owed for the debt, this is not a program they offer. Rather, the creditors want you to pay according to the terms of the loan. They only settle when they are forced to because of the risk you represent when you stop paying. When a creditor accepts a settlement for less than is owed, they are making a calculated judgment based on the cost and risk of collecting against you.
Your story and circumstances don’t necessarily matter to a consolidation company. Your particular situation will not be unique or listened to by most debt consolidation companies. Rather, you will be viewed as a nail for their hammer. They won’t tell you if bankruptcy is your most cost-effective debt relief solution. And they won’t be honest about the risks of settling debt, including getting sued by a creditor after you stop paying them.
Because of all this, it is a better choice to work with a full-service debt relief attorney who is well versed in debt settlement as well as bankruptcy. Below, find out how the bankruptcy and debt settlement team at Wink & Wink can benefit you far more than debt consolidation.
What Can Wink & Wink’s Debt Settlement Attorneys Do for Me?
As opposed to debt consolidation, which requires you to take out a new loan and – ultimately – pay back the entire amount you owe on the debt, plus interest, debt settlement is a far simpler and more beneficial solution.
Debt settlement works like this: you stop paying on a debt for at least three to four months and then you offer a smaller lump-sum payment than you owe to your creditors as a settlement in full. Once you are in default on a loan for three to four months or more, creditors will often accept a discount to settle the debt in full. While the exact amount required to settle varies by creditors, many creditors will eventually accept 50 percent of your total debt – with the rest forgiven.
When you schedule an appointment to discuss your individual situation with Wink & Wink, we can reassure you about the approach we take. We will do this transparently, as opposed to debt consolidation companies and debt settlement companies who will rush you through the process of ‘enrolling debt’ with them for settlement without being honest about the risks and the amount required to mitigate those risks. When you stop paying on your debt, you will eventually get sued by creditors who seek judgment so they can legally collect against you via garnishment of your wages or funds in the bank. The best way to manage this risk is to settle the debt before this happens. Unfortunately, this means saving or otherwise accessing the funds required to settle as soon as possible. Unfortunately, many dishonest settlement companies lead you to believe you can settle all your debt for an artificially low monthly payment. They do this because people like the sound of it when they don’t understand the risk of lawsuits from creditors.
This dynamic is made worse by the fact these debt settlement and debt consolidation companies earn money only when you agree to a settlement. This creates a conflict between you and the settlement company, in which they are eager to get you into a settlement quickly even if it’s not the most cost-effective option. And this also causes them to push payment plan settlements so they can get paid without waiting for you to save enough to settle with a lump-sum, which generally enables you to pay less in total.
At this stage, your settlement company is misleading you about the risk of being sued and the amount required to settle while recommending bad settlements that are too high. When you start paying this settlement, you are extremely vulnerable because your monthly payment (which you have been told will take care of everything) is being allocated to one or two creditors while your other creditors get nothing. When one or more of these other creditors sue you, you have nothing to offer that creditor because your entire monthly payment is committed to other creditors. When this happens, many people stop working with their debt settlement company, and the settlement program you signed up for predictably fails.
At Wink & Wink, we will approach your debt settlement situation differently. First, we have a broad base of services which allows us to recommend the most cost-effective debt relief solution for your situation, which may be filing bankruptcy. And if you decide to settle your debt, we are honest with you about the risk of lawsuits and the need to access the funds required for settlement within 24 to 30 months. Second, we have you keep your settlement money rather than pay us each month. Finally, we work to negotiate lump-sum settlements wherever possible. This enables you to settle for as little as possible and, if you get sued, our approach gives you the flexibility to settle the lawsuit with either a lump-sum or payment plan.
Keep in mind that our debt settlement attorneys will only be able to settle unsecured debts, or those that are not backed by an asset, such as your car or home. Unsecured debts refer to credit card and medical bill debt, and these can be settled with the help of the premier bankruptcy and debt settlement attorney in Denver.
Avoid Debt Consolidation and Work Out a Solution that is Beneficial for You
Our bankruptcy and debt settlement attorneys do not want to see you misled by a debt consolidation company. We will listen to your unique questions and concerns and offer a strategy that will allow you to pay off your debt for far less than the deal you’d get from a debt consolidation company. That’s because we work on your behalf, not on behalf of yet another lender.
A debt consolidation company won’t provide the personal touch that the local attorneys at Wink & Wink can – and that difference alone will provide you with the confidence you need to move forward into a new financial life and fresh start.
Give us a call to connect at (303) 410-1720, or send us a message online, and our team will be there to help you through this difficult time by providing our resources and legal strategy. We look forward to supporting you with a beneficial resolution!