I'm considering 'debt negotiation' as an alternative to bankruptcy on credit card judgement. Any advice/tips are appreciated!

Asked over 2 years ago - Los Angeles, CA

I'm currently working with a bankruptcy attorney but my income doesn't qualify for chpt. 7 bankruptcy and time is just ticking away. So I'm thinking of negotiating a debt with the creditor instead, but can I request my current bankruptcy attorney to help negotiate? or am I better off negotiating myself since 'debt negotiation' is not his specialty anyway or he may be careless anyway since I'm not filing bankruptcy anymore?

I heard negotiating on credit card debt that already has judgement is a tough one. Are there
any tips on settling this type of debt for a less amount? There are 'debt settlement or
negotiation' companies locally that I've talked with, but there are a lot of advices online to avoid them as they won't do the job they promise whyile taking my money away. Please help!

Attorney answers (4)

  1. Alan D. Walton


    Contributor Level 19


    Lawyers agree


    Answered . You should use an attorney to do this. Be aware that any debt forgiven will be considered taxable income and you will owe the IRS. I suggest you speak with another bankruptcy attorney, as you income is not the only issue in qualifying for a chapter 7. It is MUCH more involved than comparing your income to the median. I have had successful chapter 7 filings where the income is almost twice the median.

  2. Vivian Ming Lum

    Contributor Level 5

    Answered . You should contact a debt settlement attorney. This is all that my firm does. Please contact me if you need some assistance. We offer free initial consultations. If you have a judgment, then you will most likely need the services of an attorney to assist you in negotiating the debt. The creditor is unlikely to negotiate with you with a judgment in place.

  3. Robert A. Stumpf

    Contributor Level 19


    Lawyer agrees


    Answered . Mr. Walton is as always correct, though I would add that while the forgiveness of taxable debt is taxable strictly speaking, in real life it often doesn't have that much effect because the person that received the benefit is likely insolvent. I probably wouldn't hesitate to negotiate my debt based on that alone.

  4. Peter Walter Weston


    Contributor Level 17

    Answered . You are on the right track, as to avoiding online debt settlement services, because most are unable to effectively negotiate, and then to litigate when creditors will not cooperate.

    You should first review with your present attorney, solutions to this dilemma, because he, or she, is probably the one most familiar with your financial problems.
    You may also explore chapter 13 as a solution.

    There are experienced debt settlement defense firms, that can provide the service you need.

    Tips for settling, are somewhat like trade secrets, and depend greatly on the identity of the creditor and nature of the debts, and the collection strategies involved. Good Luck

    General legal advice is offered for educational purposes only. A consultation with a qualified attorney is... more

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Trade secrets and small businesses

A trade secret is an idea, process, or formula that gives the owner a competitive edge, and certain laws protect them from becoming public.


There are different types of debt, but all involve one person (the debtor) owing money to another (the creditor). Terms of repayment are governed by a contract.

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