Many people wonder what makes debt negotiation possible. How is it that people who owe money can end up paying less than they owe and paying little or no penalty for it. The truth is that most people do pay a stiff penalty for it as much of debt negotiation occurs after or during bankruptcy proceedings. Bankruptcy is a penalty that goes beyond any amount of money.
The real reason that some creditors will opt for debt negotiation is because something is better than nothing. When I say that something is better than nothing, I am being quite literal. When a person chooses to go into bankruptcy, they are telling most of their creditors that they will probably never get a cent from them. When faced with this, wouldn't you want to get at least some of what you were owed if you were a creditor? Of course you would, and so do they. If you are having financial difficulties and are looking for alternatives to filing for bankruptcy, look into debt negotiation by speaking with an attorney of other debt specialist. There are ways that debt negotiation can help you before you take the leap into Chapter 7.