Debt Relief

It is virtually impossible for most to ignore debt. When you find yourself getting hounded by creditors through harassing endless phone calls and threatening letters you may feel there is no help left.

However, Federal and state laws are designed to protect consumers from these kinds of harmful and threatening tactics.  Under the law, a debt collector’s conduct has nothing to do with the debt itself.  Debt collectors must follow guidelines of conduct regardless of the type of debt, age of the account, amount, or other aspects of the debt. There are even consumers who are hounded by creditors who completely have no right to collect the debt. This constitutes a violation of federal and state law and in essence is also a form of fraud. Consumers injured by this misconduct can sue the debt collector for damages.  Melissa Karp Law will fight aggressive and abusive debt collection whether or not the source of the problem is a valid debt.

We can help you put an end to these phone calls and letters and get you back on the road to recovery. We have helped many clients cure judgments and settle credit card debt, 2nd mortgages, medical bills and much more. We can help you explore your options to avoid bankruptcy and law suits from creditors.


What is a Debt Settlement?

A debt settlement is when you settle your debt for less than you owe.  We negotiate with your lender to find an agreeable amount to settle the debt that will be considered payment in full.

Many types of loans can be settled for a percentage of what you owe.  Some loan types that can be settled are:

  • Mortgages
  • Home Equity Lines of Credit
  • Boat loans
  • Car loans
  • Timeshares

It can be an effective way of avoiding bankruptcy while still getting rid of the debt.  The time frame and result can vary widely when negotiating with the lender.  The typical time frame would be 3-6 months.  Many debts are settled between 20 and 40 percent of the balance.

While there can be an impact on your credit, it is not comparable to having a bankruptcy on your report.  If you are delinquent on your payments you would likely see a more negative impact on your credit report.  If you are current at the time of the settlement there would be little negative effect on your score.