WHAT IS DEBT NEGOTIATION?
Debt Negotiation is the process of negotiating with a creditor to pay off a percentage of a balance owed on old bills, invoices, lawsuits, liens, medical bills, utility bills, and judgments.
This process is commonly used in debt settlement and debt arbitration.
Since a significant amount of bankruptcies that are filed by individuals and businesses occur as a result of “current” debt obligations, it is often in the creditors best interest to negotiate debt repayment to regain a portion of the money due, instead of the potential of getting nothing after a debtor files bankruptcy.
As well, since credit card companies charge such a large amount of interest and fees when debtors fall behind on their payments, the credit card companies are merely negotiating away unearned profit, as opposed to the original capital.