Lump Sum Pay Off
Depending on your available assets, you may be able to work out a lump sum debt
settlement with your creditors. A lump sum debt settlement helps you get rid of
your debt obligations by paying a portion of the total debt owed to creditors, usually
ranging from 30% to 60% of the total debt balance. Obviously, this solution might
require that you liquidate some or all of your assets to pay for the lump sum fees
you eventually agree to pay to your creditors.
In this solution, you would contact your creditors to inquire about the possibility
that you could negotiate a one-time payment, at a much lower amount than you owe,
to satisfy your debt. It is important to know that if a creditor chooses to negotiate
a settlement with you, you might still be obligated to pay taxes on the amount of
debt forgiven.