November 11, 2021

What Happens During a Debt Settlement?

Being in debt is an incredibly stressful situation. At the law offices of Thomas K. McKnight in Santa Ana, CA, our team is ready to help you if you are looking for a debt settlement or even if you need a bankruptcy lawyer.

What Happens During a Debt Settlement?

If you have debt, this debt can have a huge impact on all parts of your life. Not only will they cause a lot of financial strain, but this can bleed into your personal life and cause a lot of anxiety in your day-to-day life.

We want to make sure that you're able to live the happy, fulfilling life that you deserve. That's why our debt settlement services are here to help you. We'll help you reach financial security and provide you with a knowledgeable, passionate, and helpful bankruptcy lawyer if the situation calls for it. We'll also make sure that the settlement process goes as smoothly as possible. Here's what you can expect.

A Consultation

The first step towards settling your debt involves sitting down for a consultation. We'll need this time to discuss what your specific situation is so that we can determine how we are best able to help you. If we feel like something other than a settlement will work better for you, like a bankruptcy lawyer, we'll be able to help you there too.

During your consultation, we want you to feel free to bring up any questions you might have. If you have any concerns, don't hesitate to bring them up. Our firm prides itself of offer services that are both ethical and efficient. We want to stay transparent with you and make sure you are aware of all your options.


If together we decide that settlement is the right course of action for you, then the next step will be the negotiation. This means that our team will work with your creditors on your behalf to lower the amount of principal that you owe as well as your interest rates.

You can count on our team working hard to ensure that you get the best results from your settlement. Our passion is helping our clients, so you'll know you're in good hands when you work with us.

Payment Process

Your payment process will happen at the same time as the negotiation. During the negotiation, you'll start making payments to an exclusive purpose account, meaning it's an account set up specifically for this purpose.

You'll keep paying your balance as per your agreement, but this is the only payment you'll need to keep track of unless you have some debts that could not be enrolled into the settlement. Your creditors will be paid via this account, and over time you'll gradually pay off all of your debts until you are completely debt-free.

After the Payments

You'll use the exclusive purpose account to pay off your creditors one by one until all of your debts have been paid off. Once you've paid off your final creditor, you'll receive a graduation package that contains a few different things. It will have copies of your settlement agreements along with some help on building and maintaining your financial situation.

We'll also help you find ways to build up your credit. Some things we can recommend to you include avoiding using any credit as much as possible, making sure to pay all of your bills on time, and investing your money into your future. While the process of building your credit back up can seem intimidating at first, remember that we are here for you. Our ultimate goal is to get you back on your feet and keep you there, so you can always count on getting support from our team.

Who Should Get a Debt Settlement?

Part of getting a settlement involves determining if this is the right course of action for you in the first place. At the law offices of Thomas K McKnight, the first thing we'll help you do is figure out if this is the right path for you.

This will depend largely on how much you owe. If you owe $10,000 or more, then a settlement could be extremely beneficial and a good way to pay off your creditors. If you owe less than $10,000, then a settlement may not be necessary. We'll help you determine what's right for you. We can also discuss options like how a bankruptcy lawyer might be able to help your situation.

Why Should You Work with Our Team?

We understand that there are a lot of options out there if you are currently in debt. But there are several reasons why you might want to choose our team over any of the other available options. Here are a few benefits you can expect when you reach out to our offices.

A Team That Caters to You

No two people's situations are the same. That means that when it comes to a settlement, no two plans can look the same either. This is something that we understand at the law offices of Thomas K. McKnight.

It's also exactly why we will make sure that each service that we offer is personalized to fit your specific needs. We believe that success is possible for all of our clients, which is why we will tailor our services to make sure you get to live the happy, debt-free life you deserve.

Unending Support

Many people expect the last creditor payment to be the end of their journey with debt. And while this is the case for many, for others that's not quite where the story ends. Even after you've paid off your last creditor, you may suddenly find yourself in a situation where you're not as financially secure as you expected to be.

These are things that you may not be able to account for. But what you can count on is having a team on your side. If something unexpected comes your way when you're not ready for you, we are here to offer you support even after your settlement is done.

A Compassionate Team

Sometimes, the only thing more challenging than being in debt is seeking out help to get rid of your debt. Asking for help is never easy, and this may feel like a particularly vulnerable time for you.

Our team understands these challenges. That's why you can expect a team that's just as compassionate and caring as we are hardworking and committed to you and your success.

A Happy, Debt-Free Life

Your happiness and financial stability is our ultimate goal. While your situation may feel bleak now, know that the tools you need to become debt-free are available to you.

When you work with us, you'll work with a team dedicated to helping your financial situation and that will work tirelessly to free you from your debts. You'll be rid of any anxiety about your debt and able to live a happy, healthy, and financially stable life.

Learn More About How We Can Help

If your debt is affecting your life, we are here for you. Get in touch with the law offices of Thomas K. McKnight in Santa Ana, CA to learn more about how our debt settlement can help you.

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