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New Jersey Debt Negotiation Attorney
Money trouble can touch every part of life. When the bills pile up, you might also face stress at home, a health issue, or a hard time after a divorce. These strains can leave you feeling alone and short on choices.
In moments like this, quick-fix ads can look bright and safe. Some companies promise to wipe out your loan or cut what you owe, but many keep your fees and leave you with more worries. Real ways to settle a debt do exist, yet it helps to talk with someone who puts your needs first.
You deserve clear help, not empty promises. A New Jersey debt negotiation attorney at Straffi & Straffi Attorneys At Law will sit with you, hear your story, and work to strike a fair deal with the people you owe. Our first goal is direct debt talk that eases the load from job loss, divorce, or medical bills. If a fresh start through Chapter 7 and Chapter 13 might serve you better, we can touch on those paths and what they could mean for your future. Call us today, take a breath, and let us help you move toward steady ground.
To learn more about how we can help you, contact us today at (732) 341-3800.
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Debt negotiation, sometimes called debt settlement or debt relief, is a way to ask for help when money worries feel heavy. A trusted third party speaks with the people you owe. The goal is clear: cut the balance so you can move forward.
Many creditors say yes because getting part of what you owe is better than getting nothing at all. These talks can lead to three main paths. You might pay a smaller lump sum. You might stretch the payments over a longer time. You might have part of the balance wiped away.
Debt negotiation works best for unsecured debt, meaning debt that doesn’t have collateral. Common examples of unsecured debt include:
While debt settlement is effective for many unsecured debts, certain types are more challenging and are generally not handled by standard debt settlement programs.
Debtors with secured debt, like mortgages, and who are at risk of foreclosure may not be able to avail of debt negotiation since creditors are less likely to agree when they can just repossess the collateral.
Be careful of any company that promises to fix secured debt or says it can erase every kind of loan. Check reliable sources such as the Federal Trade Commission, the Consumer Financial Protection Bureau, or the New Jersey Attorney General’s office. An experienced debt-relief lawyer can also guide you and protect your rights.
Debt settlement can still bring real relief. In many cases, it can slash as much as half of what you owe, help you stay out of bankruptcy, and stop collection calls once the plan is done.
Keep in mind that every benefit comes only if the creditor agrees. Our experienced New Jersey debt relief attorneys at Straffi & Straffi Attorneys at Law may be able to evaluate your financial situation and negotiate favorable terms that would best fit your needs.
Call us today at (732) 341-3800 to schedule a complimentary consultation with one of our lawyers.
| Debt Type | Eligible for Negotiation? | Reason |
|---|---|---|
| Credit Card Debt | Yes | Unsecured; common target for debt settlement |
| Medical Bills | Yes | Unsecured and negotiable with healthcare providers |
| Personal Loans (Unsecured) | Yes | Lenders may agree to partial payment settlements |
| Student Loans | No | Typically excluded due to federal regulations |
| Mortgages | No | Secured by collateral (the home); foreclosure is an option for lender |
| Tax Debt | No | IRS has its own structured relief programs, not general debt negotiation |
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Daniel Straffi, Jr., combines strong academic training and broad legal experience to serve clients facing financial distress. After graduating from Rutgers-Camden School of Law in 2001, he clerked for a Family Law Presiding Judge and later practiced negligence defense before dedicating his career to debt negotiation and bankruptcy law.
You may feel your heart race each time a debt collector calls. Take a breath. The Fair Debt Collection Practices Act, or FDCPA, shields you from bullying tactics in New Jersey. Under this federal law, a collector may not curse, lie, or threaten you with jail. Calls must stay between 8 a.m. and 9 p.m. They may not ring your job once you say stop. After they first reach out, they are required to send you a letter within five days. This notice will clearly explain the amount they believe you owe and will name the creditor you owe it to.
You have tools to push back. Send a simple letter within 30 days asking for written proof of the debt; the calls must pause until the collector answers. Write to demand they stop contacting you, and they can only communicate by mail or through your attorney (except in limited cases, like confirming they’ve stopped). Keep all call logs, texts, and voicemails. FDCPA violations can lead to up to $1,000 in damages per lawsuit, plus legal fees.
New Jersey adds an extra layer of safety. Collectors working here must follow the state Consumer Fraud Act and hold a license. You can report rule breaks to the state office, called the Division of Consumer Affairs, for review. Also, know that many debts become unenforceable after six years in New Jersey, depending on the debt type.
Do not wait until the stress harms your health. Help is close, and you do not have to face rude calls alone. A New Jersey debt negotiation attorney can step in, speak for you, and stop the noise at once. A lawyer can review each claim, press for damages, and work out a realistic payment plan or settle the balance for far less than face value. Let us help you find solid ground. Contact us for compassionate and effective legal support.
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Given the benefits of debt negotiation, it is only safe to conclude that the process also carries a significant amount of risks. As the creditor is not obligated to agree to an offer of partial repayment or debt reduction, a debtor may be subjected to terms that are more favorable to the creditor to sweeten the deal.
The new terms of the debt can leave a debtor in a more disadvantageous position than they would have been if they had paid the debt outright. Debt negotiation does not remove negative information already on the debtor’s credit report and may even cause further damage.
Debt negotiation companies also charge high fees. Comparing the fees that you would pay to the debt that would be relieved can be a good way to determine whether the negotiation would be worth it. Keep in mind that settling a balance will still appear on your credit report as “settled for less than the full amount,” which can lower your score.
Your credit score is not the only thing that can get hurt. The IRS treats any part of a loan that is wiped away as income.
Picture this. You owed $20,000 but settled by paying $15,000. The $5,000 you did not pay still counts as income. Your lender will likely mail you Form 1099-C to show that erased amount, and you must list it on your tax return. Sometimes you can avoid the tax, for example, when you owe more than what you own. A lawyer can look at your full financial profile and guide you toward the next step.
Should you choose to move forward with debt negotiation, you should also be aware of scammers who pose as legitimate debt negotiation companies.
The Federal Trade Commission advises about red flags you should avoid including:
Engaging with a debt negotiation company also does not guarantee that your creditor will not sue you for your debt. You may continue to accrue additional fees and interest while the negotiations are ongoing. Debt negotiation, including the time it takes to repay the debt, can take years and that is only if your creditor agrees to settle.
The risks can be mitigated by getting a reputable intermediary. An experienced New Jersey debt negotiation attorney may be able to help you in seeking a safer solution to settling your debt. Our skilled attorneys at Straffi & Straffi Attorneys at Law can thoroughly evaluate your financial situation and recommend possible legal solutions customized to your case.
Contact us today at (732) 341-3800 or fill out our online form to schedule a free consultation with one of our experienced New Jersey debt negotiation attorneys.
Most people explore debt negotiation mainly as an alternative to filing for bankruptcy. Having a bankruptcy on your record can prevent you from getting credit in the future. However, by the time that you are considering settling your debt, your remaining options are likely to only be negotiation vs. filing bankruptcy.
Debt negotiation and filing bankruptcy only have two things in common:
While the list of their similarities is very short, debt negotiation and bankruptcy have a whole host of differences.
To start with, bankruptcy is a matter of public record. Whether you file a liquidation (Chapter 7) or a reorganization (Chapter 13) bankruptcy, your affairs will be heard in Bankruptcy Court where a judge would decide the outcome of your case. Debt negotiation is a private transaction conducted by your representative, who can be an attorney or a debt negotiation company.
A debt settlement can take less time to finalize compared to bankruptcy if the creditor is willing to negotiate. A creditor would also be more likely to agree to negotiations as they are likely to receive at least something from the debt compared to if the debtor gets approved for liquidation bankruptcy. A bankruptcy would pause any lawsuits against the debtor by their creditors and stop any collection efforts while debt negotiation can only stop collection calls if the cease-and-desist is included in the agreement.
During debt negotiations, you may also be required to save money in an escrow account which will be used to pay off your negotiated debt. If you are working with an unscrupulous company, you may not be able to control the funds or get the money back. Filing for bankruptcy under Chapter 13 means you will work directly with the Bankruptcy Court and its representative to repay your debt.
Whether you apply for bankruptcy or engage in debt negotiations, getting the help of an experienced NJ debt settlement or bankruptcy attorney can help. An attorney can provide you with more information about each option and determine which would give you the most benefits depending on your situation.
Our skilled attorneys at Straffi & Straffi Attorneys at Law may be able to provide you with guidance on how to navigate the process of debt negotiation or filing for bankruptcy. Our practice is dedicated to helping clients make informed decisions about their finances to help them start anew.
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At Straffi & Straffi Attorneys at Law, we believe in collaborating with our clients and equipping them with the right tools that best fit their needs. We use our extensive experience to protect the rights of NJ residents and to provide quality legal services and representation. If you or a loved one is in a financially vulnerable situation and is considering debt negotiations or settlement, having an experienced NJ debt negotiation attorney by your side can minimize the risk of further financial damage.
Call us today at (732) 341-3800 to schedule a free consultation with our top-rated NJ debt negotiation attorneys. You may also fill out our online form or visit our Toms River, NJ office.