The debt settlement/debt negotiation option is often best suited for clients who foresee in the near future an ability to pay off their debts, but have for whatever reason fallen behind on their monthly payments so that late fees and interest have begun to accumulate to unmanageable levels. While the financial situation has deteriorated, bankruptcy may still not be a good option yet. For some debtors, our attorneys may recommend they pursue a process known as debt settlement or negotiation (sometimes known as debt arbitration). This is often an extra-judicial alternative, taking place outside of the courtroom and without the oversight of judges. Our attorneys negotiate with the lender on your behalf in order to allow you some time to catch your breath financially, and when a favorable settlement or payment plan is reached, you have the option to accept or deny it. The fate of your credit card balances is in your hands, and only you, working closely with your attorney, have the binding power to agree to any payment arrangements. Often, after a series of negotiations and a demonstration of hardship, credit cards will take a lowered percentage of the total outstanding debt, and the account will be reported as “settled.”