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Unsettling Facts About Debt Settlement

Are things a little tight? When you paid your bills last month, was there less money in your account than you expected? Are you worried about being able to meet your obligations next month? If you answered yes to these questions, you may be at risk of serious financial difficulties, but you can probably work your way out of them before they get to the critical stage.

However, if you are already at the critical stage, you probably feel like there is no way out from under the mountain of debt. Of course, there are dozens of options available to help you out of financial trouble, and some of them promise quick fixes and little risk. The problem is that many of these organizations offering debt solutions prey on people like you who are feeling desperate enough to try anything. One example of a potentially risky venture is debt settlement.

Not a sure fix

In many cases, you can attempt to negotiate with your creditors on your own, but if you are feeling overwhelmed by your debt, the prospect of help in this area may sound attractive. Debt settlement companies offer to work with your creditors to get them to agree to a lower amount than you owe. However, it's not always that easy.

For one thing, a debt settlement company will typically deal with unsecured debt only, like credit cards. So, if your home is in foreclosure or your car is under threat of repossession, debt settlement won't really help much.

How it works

Debt settlement typically follows this process:

  • You stop paying your debts and instead make a monthly payment to a settlement company account.
  • After the account has a certain amount of money, which may take many months, the settlement company will approach the creditors and offer a lower amount to pay off what you owe.
  • The creditor may or may not accept the settlement.
  • Since the law forbids such companies from charging upfront fees, the settlement company will likely charge you a percentage of the forgiven debt.

While the settlement company sits on your money, your creditors get nothing. More importantly, you receive no protection from their harassment or any other actions they may decide to take against you because of your nonpayment.

That kind of protection comes through filing bankruptcy. With bankruptcy, foreclosure and repossession halts, and you have a chance to work out a way to repay what you owe, often with lower balances. You may even qualify for Chapter 7 bankruptcy, which allows for the discharge of many debts. Your best advantage will be to work with a seasoned New Jersey professional who is devoted to helping you resolve your debt problems as positively as possible.


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  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
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Goldman & Beslow, LLC

Goldman & Beslow, LLC is a Federal Debt Relief Agency by an Act of Congress. We have proudly assisted consumers seeking relief under the U.S. Bankruptcy Code for over 38 years.

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7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017
East Orange Law Office

Phone: 973-414-8069
Phone: 973-419-7631
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
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Newark, NJ 07104
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Phone: 973-483-1333
Phone: 973-419-5266
Phone: 201-205-2496
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PATERSON OFFICE 100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510
Paterson Law Office

Phone: 973-247-9445
Phone: 973-419-5266
Phone: 201-205-2496
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JERSEY CITY OFFICE 26 Journal Square,
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Jersey City, NJ 07306
Jersey City Law Office

Phone: 201-659-6226
Phone: 973-419-5266
Phone: 201-205-2496
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