Blog & Journal


The Pros and Cons of Debt Settlements

skyseoroundtable December 24, 2021

Can I Negotiate My Bills Down?

 If your debts are becoming overwhelming, but you don’t want to declare bankruptcy, there is another way to get your bills under control – debt negotiation.

If you live in New York, debt negotiation may be the best way to get your unpaid bills taken care of. The following type of debt can be usually negotiated down:

  • Credit card bills
  • Tax debt
  • Student loans
  • Business debt
  • Medical debt

Why Choose Debt Negotiation?

There are a number of reasons why you should choose debt negotiation over bankruptcy:

  1. You’re worried about your credit score – Both bankruptcy and debt negotiation will be noted on your credit report and will damage your credit rating. However, some creditors may be convinced to report your negotiated settlement as “paid as agreed” which would not negatively impact your credit score.
  2. You make more than the median income in your neighbourhood – Certain bankruptcy proceedings only work if your income is at a particular level. If you make too much to pass the “means test,” then you definitely want to look at debt negotiation.
  3. You have “unprotected equity” – While there are certain basic assets that you can protect during bankruptcy proceedings, there are other such as rental properties, investment accounts, and the like that could be at risk. If you have a lot of equity in your home, that can also be a problem.
  4. You’ve recently given money to others – In bankruptcy terms, this is known as an “avoidable transfer”, and it is a red flag. If you’ve given a large cash gift to a friend or relative the courts may think you are trying to hide money from your creditors.
  5. You feel like you can pay off your debts going forward, but you need more time to do so – If you ended up in debt due to unemployment, but now have gotten a new job, debt negotiation can give you the time and space you need to get all your debts paid off.
  6. You have loans that won’t be cleared by bankruptcy – This includes student loans and tax debt.

If you’re looking for more information to decide on whether debt negotiation or bankruptcy is your best option, see our overview on Debt Negotiations and Settlements –

Or if you’d rather talk directly to a compassionate, knowledgeable, human being, reach out to New York bankruptcy attorney Ronald D. Weiss, P.C. for a free consultation. He can tell you if debt negotiation is right for you, and help you get the process started. Call 631-271-3737 and take the first step to a fresh start.

Contact the Law Office of Ronald D. Weiss, P.C.


📞 : (631) 271-3737

📧 : [email protected]

🌎 :


📍 : 734 Walt Whitman Rd #203, Melville, NY 11747

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