The Law Offices of Fitzhugh & Blanton, P.A.

Free Initial Consultations | Get The Answers You Need

941-584-4263 888-610-0968
We can get you a fresh start.

We have been helping Florida families shed debt and get back on their feet for more than 30 years.

Main Menu

Debt negotiation programs and the risks for debtors

A debt negotiation program is not the same as a debt management plan or credit counseling. These programs can be beneficial, but some can be harmful to your credit rating, so it's important to consider your options before deciding to pursue a DNP.

A DNP is also known as a debt settlement company. These companies may claim they can cut your owed debts by as much as 50 percent, but that isn't always the case. Some may also claim that the services won't negatively impact your credit rating, but beware of this claim, because many times these programs can leave consumers with a poor credit profile that has to be rebuilt over time.

Remember that in order to negotiate your debts, you may find that the DNP waits until your debts are several months overdue. At that point, you can see your credit rating dropping quickly, since delinquency notices will be filed. You could also be facing lawsuits, liens, or wage garnishments at that point, all because of the long waiting period before negotiations could begin.

How do you know which program to avoid? If the program guarantees you to remove your unsecured debts in full, charges high fees each month, tells you to stop making payments to creditors, or tell you the arrangements won't hurt your credit rating, it's time to take a step back and avoid the program. It could be a poor program or one that takes advantage of you in an already difficult situation. Your attorney can help you understand the alternatives, like bankruptcy or debt negotiation with a debt management plan, which may be better options.

Source: FindLaw, "Debt Negotiation Programs," accessed Dec. 30, 2015

No Comments

Leave a comment
Comment Information

Start Your Free Initial Consultation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Locations

1100-C S. Tamiami Trail
Venice, FL 34285

Map & Directions

ComCenter at Lakewood Ranch
9040 Town Center Parkway
Suite 204
Bradenton, FL 34203

Map & Directions