If you are facing a large amount of debt you are likely feeling overwhelmed by the amount of money you owe. You want to absolve your debt and move on, but you may think that the legal jargon and the process involved in debt negotiation are over your head. Actually the process is fairly straightforward, and understanding the terms commonly used when discussing debt negotiation can help you better understand your situation and how you can resolve it.
Debtor: Probably the most important term in negotiating a debt, the debtor is the person who borrowed money on credit and now owes that money back. Anyone who has an outstanding credit balance is considered a debtor.
Creditor: The creditor is the person or institution that loaned money to the debtor in the first place. Creditors loan money with the expectation that it will be paid back in full by a set date, or in payments over time, usually with interest added. During debt negotiation, the person who negotiates on your behalf is usually negotiating directly with the creditor.
Power of attorney: A power of attorney is a document that a debtor must sign if he or she wants a lawyer to negotiate the debt on the debtor’s behalf. A signed power of attorney gives the lawyer the legal power to make limited financial decisions for the debtor.
Debt Settlement: A debt settlement is a sum of money that the debtor saves over time during the negotiating process. Once enough money has been saved towards the settlement, an amount to be paid will be decided by your negotiating lawyer and the creditor. The debt settlement will be paid to the creditor, and multiple settlements may be paid depending on the negotiation situation, the total negotiated amount of money owed, and the number of creditors to whom the debtor owes money.
Once you are familiar with the terms involved in debt negotiation, you will likely see that the debt negotiation process is not very complex. A debt negotiation lawyer will consult with you throughout the process and make clear the conditions of absolving your debt.
To learn more about the debt negotiation process and consult with a lawyer about your debt, please contact the Milwaukee debt negotiation attorneys at the DeLadurantey Law Office, LLC today at 414-377-0518.