Letters from Zwicker and Associates for collections?

Zwicker and Associates is a major law firm that collects on credit card debts but I have rarely(if ever) spoke with an attorney there and they must have 500 collectors(non-attorneys). If debt settlement is an option that you are considering and you do no want to file bankruptcy to eliminate the debt, then you should be happy that Zwicker is collecting as they are pretty good about giving reasonable settlements. I frequently get settlements between 30% and 40% and have not seen them actually sue someone in a long time. Have someone negotiate for you who knows how to deal with Zwicker. There are certain times of the month when they are more willing to drop down the % that they get and when there is a bankruptcy attorney on the other end of the phone, they know the alternative to not settling. Zwicker has offices in California but they are a bigger play on the east coast and I have not seen a lot of cases filed by them so there is likely time to work out a settlement if that is an option and you can afford to pay a lump sum within a few months. If not then talking to a bankruptcy attorney is probably your best bet.

Frequently Asked Questions: Debt Consolidation in California
How does debt consolidation affect credit scores?

Initially, it might cause a slight dip due to credit inquiries. However, consistent payments can improve your credit score over time.

What is the difference between debt consolidation and debt settlement?

Debt consolidation involves taking a new loan to pay off debts, while debt settlement is negotiating to pay less than you owe. Settlement can negatively impact your credit score.

What are secured vs. unsecured debt consolidation loans?

Secured loans require collateral (like a house or car), usually with lower interest rates. Unsecured loans don't require collateral but typically have higher rates.

Is debt consolidation right for me?

It depends on your total debt, interest rates, credit score, and payment capability. It's suitable if you can pay off your debt within five years and secure a lower interest rate than your current debts.

Should I consider long-term financial planning?

Yes, debt consolidation should be part of a broader financial strategy including budgeting, cutting expenses, and building an emergency fund.

How do Chapter 7 and Chapter 13 bankruptcies in California differ?

Chapter 7 involves liquidating assets to pay off debts, while Chapter 13 allows debt restructuring over a set period, usually three to five years.

Can my spouse's bank account be garnished for my debt?

Bankruptcy laws offer protections against such actions, but specifics depend on individual cases and state laws.

How can I learn more about my options?

Consulting a California bankruptcy attorney can provide clarity. Firms like The Law Offices of Christopher Hewitt offer free consultations to explore debt relief paths.

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