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Trying to consolidate personal debt, seeking debt consolidation and settlement companies in CA

San Francisco, CA |

I am looking for help with my debt (primarily sudent loans in default, credit card, medical bills and personal loans totaling over 70,000) I am looking for a best possible deal settling it. Debt settling companies seem to be charging a higher fee than i anticipated without guarantees of how much of the total amout to repay may be reduced.
Can anyone point me in the right direction? Legal advice?

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Attorney answers 1


You have three options. But, first, we should start with the non-option. Debt settlement companies should be your last choice, as in, don't use them. Why? Not every creditor deals with them and they will charge you a very high fee. So, what does that leave:

1. You can negotiate with the creditors yourself. Basically, you call them up, explain your situation and tell them why you need to have some modification. They may deal with you on this. It depends on the creditor and your reasons.
2. You can hire an attorney to negotiate on your behalf. Attorneys who handle this work know how to get a creditor to see the downside of not settling. You will pay money for this, but in my experience, it gets better results than if you do this by yourself.
3. You could also file bankruptcy. Some of the debts may not be dischargable, like the student loans.

You should talk to an attorney and obtain a free consultation on negotiating and compare that to filing bankruptcy.