Debt Settlement vs. Bankruptcy

Debt settlement is a great alternative to chapter 7 or chapter 13 bankruptcy. Essentially, a debt settlement lawyer will help negotiate your debt down to around 30% - 45% of what you really owe, and we wipe out the interest too.

We are a small law firm and do amazing legal work, not like those giant firms that advertise on TV or the radio. Over the past 12 months, we’ve settled thousands and thousands of dollars in debt through debt settlement, which saves our clients a lot of money.

Sometimes debt settlement makes more sense than bankruptcy, sometimes it does not. Let’s sit down and figure out your situation and get you on the road to financial freedom. Contact us today for a free consultation!

Free Consultation

Debt Settlement FAQs:

What debts can I settle?

You can settle credit card debt, medical bills, utilities, repossessed vehicles, vehicle surrenders, foreclosed houses, house surrenders, payday loans, furniture loans; essentially, we can settle all debts except IRS, state taxes, and student loans.

Can I settle a debt that has become a lawsuit?


Will debt settlement hurt my credit?

The short answer is "a little". You can begin to rebuild your credit more quickly since you are not doing bankruptcy or do not qualify for bankruptcy due to income. Debt settlement is more beneficial than continuing to miss bill payments each month, which hurts your credit. The key to having good credit is fixing what is broken, having debt owed right now. Debt settlement helps you get started doing things right the second time around. We also have a credit repair program to help you re-establish credit when your debt settlement is done.

Why not just do a bankruptcy and wipe out all my debts?

Filing bankruptcy may be a better option than debt settlement, but let's figure it out together. The decision to file bankruptcy over debt settlement normally comes down to if you qualify for bankruptcy or not. If you do not qualify for bankruptcy, then a debt settlement is an excellent option, especially with our method of debt settlement. It’s likely you’ll get a better deal on debt settlement if you follow our plan.

Why are you better than the big debt settlement companies on TV or on the radio?

Because Paolucci Law is a small law firm focused on debt settlement and bankruptcy. We have a great reputation to uphold when working for our clients. We are also actual lawyers working on your debt settlement. Our track record shows that we can wipe out up to 70% - 90% of your debt, and we have the data to show you that is a fact. Other debt settlement firms can’t show you their track record or have few examples because they are not as good at settling debt as Paolucci Law.

How do I pay debt settlements?

Once you retain Paolucci Law for debt settlement, you’ll stop paying on most debts. Stopping payment on debts will give you positive cash flow to save and use to pay the settlements once we engineer them. Stopping payments and freeing up cash for future payments is key to getting your debt settled.

How much does debt settlement cost?

We normally take a $100 retainer upon hiring us, then do a payment plan with you for an additional $900. $1,000 is our standard retainer for debt settlement, and we work off that amount on an hourly basis. We do not collect money if we do not work for you. We only collect if we spend actual time on your case.

Do I qualify for bankruptcy or debt settlement?

Debt settlement is good for folks that make too much money to do a bankruptcy. Generally, the thresholds of income for bankruptcy are:

1 person household income limit is $46,000 per year
2 person household income limit is $56,000 per year
3 person household income limit is $68,000 per year
4 person household income limit is $78,000 per year
And roughly +$10,000 per person, per year beyond that

If you do not qualify for bankruptcy, debt settlement is the right option. Still not sure? Give us a call.

How do I get started with debt settlement?

To get started, contact Paolucci Law by completing the information below. A representative will be in touch with you shortly.

Get Started

Contact us and tell us your financial situation, bankruptcy can probably help you.

We stop debt collectors from calling you. Let us know if they're harrassing and we'll handle it.

Paolucci Bankruptcy Law: