What Can I expect if I try to Settle my Debts without a Bankruptcy?

If you have some money to pay your debts, but not enough to ever pay them off, you might prefer debt settlement over filing bankruptcy. If you have experienced difficulty making the payments to a creditor, it is possible that the creditor will accept partial payment in full satisfaction of the debt. Although this type of settlement will negatively affect your credit score, it is not nearly as damaging as a bankruptcy filing.


Typically only unsecured creditors will agree to a settlement. If a creditor is secured by property (like a car, furniture, or a house) the creditor will want to repossess the property in order to get paid. However, often times the repossession and sale of the property does not pay the full debt amount. The remaining unsecured portion of the debt can usually be settled for less than the remaining balance owed.


Successfully settling a debt depends upon many factors. Settlement amounts vary based on the creditor, the type of debt, and your ability to pay. The following are several types of unsecured debts that Legal AZ routinely settles:



Legal AZ possesses many advantages which allow us to get you the best possible settlement. We have experience measuring individuals’ capacity to pay and matching that with what various creditors expect. Due to our prior work, we are aware of what level of settlement many of the national creditors will accept. We also understand the Bankruptcy laws and general Debtor laws so we can explain your rights to each creditor and show that our offer is better than they may otherwise get if they try to collect the debt through a lawsuit. Our experience can save you a substantial amount of money when settling your debts. Most of our settlements are in the range of 12% – 30% of the outstanding debt balance.


Legal AZ has over thirty three years of experience and can help you make a debt settlement decision that will be best for you!