Often when people have high credit card debt, it’s difficult to see a way out. I am here to tell you there is a way to settle credit card debt with Bank of America. In my debt relief law practice, about one third of my clients are deep in credit card debt. Bank of America is a lender that we have negotiated with often. Some clients come to us usually after they have tried to taking control of their debt with the Bank of America credit card assistance program. But once your credit card debt becomes unmanageable and you can’t make payments, then Bank of America will pressure you with a lawsuit. I am here to tell you, there is a way to settle your debt with Bank of America and avoid a lawsuit.
Settling Credit Card Debt with Bank of America
Quite often we are able to successfully settle Bank of America credit card debt. For instance, A business owner used a Bank of America credit card to help his business succeed. Unfortunately, the business failed and he accumulated $37,000 in credit card debt. Bank of America assigned the debt to LTD Financial Services to collect the credit card debt. Through negotiation, LTD agreed to settle the account for $11,350.00. This is a savings of just under $26,000.00 (a 70% savings on the balance due).
Negotiating A Debt Settlement with Bank of America Credit Card
A Bank of America credit card debt settlement can be reached even if you have already been sued for debt. When you can’t make your credit card payments for 180 days, Bank of America will “charge-off” your account and your credit card account is considered in “default”. At this point, you will probably get sued for the credit card debt. Lawsuits are expensive, so the credit card companies want to avoid them. This serves as an advantage to the borrower when negotiating a debt settlement. Another advantage is that Bank of America considers “charge-offs” as a cost of doing business and they receive tax benefits for the written off debt.
So if you are sued and find yourself defending a Bank of America credit card lawsuit, a debt settlement could be a “win-win” for you and Bank of America. A debt settlement is a negotiation between the credit card borrower (you) and the credit card lender (Bank of America in this case) that you will pay back a (usually greatly) reduced amount of the original debt that you owe in one lump sum or over an extended period of time in a payment plan. Bank of America would rather negotiate a debt settlement for your credit card debt than have you declare bankruptcy and receive nothing.
For instance, a credit card holder owed Bank of America $8,452.45. As they often do, Bank of America handed the debt collection over to creditor law firm Hunt & Henriques. He hired a debt settlement lawyer who was able to negotiate a debt settlement of $4,500.00, payable over a 7-month period. This helped him to avoid the unnecessary headache of fighting this out in court.
Tips for Settling Bank of America Card Debt
We are often asked if you have to hire someone to settle a Bank of America credit card debt or if you can do it on your own. Technically, anyone can settle debt on their own. If you have small amounts of credit card debt, you might want to take a stab at it on your own. If you want real success, then you need to hire an attorney with a proven track record of successfully negotiating debt. Someone who has relationships with the banks and knows the answers to questions, such as:
- Should you disclose your financials?
- Is the offer you receive the best you’re going to get?
- What makes this a valid offer?
- Does it need to be in writing?
- Is the written offer valid and binding on all parties?
Be aware of debt settlement companies who are often involved in debt relief scams. Debt settlement companies are not held to the same legal and ethical obligations as a debt relief attorney. Plus, if you are sued by Bank of America, then an attorney can defend you in a court of law. A debt settlement company cannot and will refer you to an attorney who might not give your case the special consideration that you deserve.
Settle Credit Card Debt with Bank of America for Less With Legal Help
Now that you know more about how to settle debt with Bank of America, I want to share another huge benefit of debt settlement for credit card debt. Once you have completed your debt settlement, your credit score will start to increase! Our client owed Bank of America $11,134.27. After explaining her significant hardships, Bank of America offered to settle the matter for $3,000.00. Our client paid approximately 27% of the amount owed, saving a little over $8,000.00 on this account. Now that her debt settlement is paid off, her credit score has risen significantly.
If you are ready for your phone to stop ringing with debt collection calls, it’s time to look for legal debt relief help. Once you have retained an attorney, the debt collectors can’t contact you anymore. If you are sued, an attorney will defend you. But more importantly, an experienced debt relief attorney will put forth every effort to ensure you don’t go to court in the first place by settling your debt with Bank of America.
Any more questions about settling credit card debt with Bank of America? Give me a call for a free consultation at 858-217-5051 and we can go over your debt relief options.
Daniel R. Gamez, an attorney focusing exclusively in debt relief, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in San Diego, CA. For more information, please contact Daniel Gamez at 858-217-5051, firstname.lastname@example.org or use our online contact form. Stay updated with the latest debt relief tips by following on Facebook and Twitter!