Debt Settlement

What Is Debt Settlement?

Many debt collectors purchase loans from the original creditor with the expectation of recovering less than the full amount owed. This is why they are frequently willing to negotiate a settlement worth 75%, 50% or even less of the debt owed! When you add up these savings over multiple loans owed, it could lead to results similar to those that would be achieved in bankruptcy, except with only a fraction of the time and costs involved.

Although an attorney is not necessary to negotiate debt settlements with collectors, we find that, generally speaking, collectors are willing to offer much lower settlements and much better terms when an attorney is involved.  And they are willing to offer these things much more quickly! Hiring an attorney is also advantageous because the law requires collectors to send any [annoying] communications through the attorney instead of directly to their clients. In addition, collectors know that a client who has hired an attorney is only a small step away from filing a lawsuit if they overstep the strict constraints of the law.

APLG has represented dozens of clients owing significant sums of money to dozens of different creditors (typically these are collection agencies for hospitals or credit card companies), and has achieved positive results in many of those cases. We know how to filter out all of those annoying and unnecessary phone calls and letters from collectors and only pass on to you the information which is important for settling the debt. And we also know when collectors have crossed the line and may be liable to our clients for statutory damages.

Unlike most debt settlement firms, which may charge their clients a large up front fee or monthly payments extended over a year or more, APLG will only charge when a settlement on an account has been reached and accepted by the client. This charge is not fixed, but will typically represent 20% of the amount by which the debt has been reduced. And when settlement offers are inadequate to provide the level of debt relief desired by our clients, APLG is then willing and able to pursue other options for debt relief, such as collection defense or the filing of bankruptcy.

APLG’s Debt Settlement Practice

APLG has represented dozens of clients owing significant sums of money to dozens of different creditors (typically these are collection agencies for hospitals or credit card companies), and has achieved positive results in many of those cases. We know how to filter out all of those annoying and unnecessary phone calls and letters from collectors and only pass on to you the information which is important for settling the debt. And we also know when collectors have crossed the line and may be liable to our clients for statutory damages.

APLG also has experience with the settlement of tax debts, typically income taxes assessed by the IRS or the Virginia Department of Taxation. The most common settlement option is to submit an “offer in compromise” either questioning their calculation of the taxes owed or their ability to collect what you owe. As you might expect, this requires a good deal of paperwork and supporting documentation, and you must make a reasonable offer of what you are willing or able to pay. We are able to calculate this preliminary offer amount and help you deal with the loads of paperwork involved.

And unlike most debt settlement firms, which may charge their clients a large up front fee or monthly payments extended over a year or more, APLG offers a contingency option where we only charge when a settlement on an account has been reached and accepted by the client. This charge is not fixed, but will typically represent 20-30% of the amount by which the debt has been reduced. We also have the flexibility to offer fixed fees to our clients if we think that’s a better option for them. And when settlement offers are inadequate to provide the level of debt relief desired by our clients, APLG is then willing and able to pursue other options for debt relief, such as collection defense or the filing of bankruptcy.

 

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Our office is conveniently located near the East Falls Church, West Falls Church and Tyson's Corner Metros, and right off major highways US 66 and 495. We service clients from all over Northern Virginia and D.C., including Manassas, Alexandria, Falls Church and Fairfax.