Michael S. Gibson of Lexington, Kentucky is an experienced entrepreneur, business wealth strategist, and mentor who has found success in more than 33 companies across 17 industries. In the following article, Michael Shane Gibson discusses how to avoid bankruptcy and overcome debt in less than 90 days. Most people don’t realize that they have the power to negotiate with their creditors to reduce their debts by more than half! According to financial experts, many creditors will consider settling debts at pennies-on-the-dollar thanks to a higher likelihood of payment after delinquent debts begin adding up. As long as a lump sum of money is available and the in-debt party has the confidence to collaborate, negotiating debt is a feasible alternative to bankruptcy. In this article, Michael S. Gibson of Lexington, Kentucky provides the top four steps on how to go from bankruptcy to debt-free in 90 days. Michael Gibson has been driven by an intrinsic passion to help others realize their own ambitions – no matter how big or small. By sharing his vast knowledge of the business world with those around him, he demonstrates his strong commitment to enabling others to reach their peak potential – both personally and professionally.

Important Steps

Each of the following steps are significantly important if the goal of becoming debt free is to be achieved.

Understand Settlement Requirements

It is important even for the most desperate of people who are in debt not to rush into negotiations with creditors as a way to escape bankruptcy. Settling debts comes with their fair share of repercussions. Michael S. Gibson of Lexington, Kentucky explains that candidates for debt settlement must already have delinquent debts. This is why the process takes a minimum (and, if working quickly, a maximum) of 90 days. Debts must be delinquent for at least this amount of time before successful settlement negotiations can begin. It is also important to determine whether or not the in-debt party has enough money to pay the settlement agreement. Typically, creditors will notice that the unpaid debts are piling up and would rather have part of a payment if they are beginning to worry that there will be no payment at all. That being said, many creditors will want that partial payment to be a lump sum. Finally, Michael Shane Gibson says that confidence in one’s own ability to communicate and negotiate persuasively is critically important. If the debtor does not believe that they can settle on a beneficial deal with the creditor, it will likely result in poor negotiations.

The Effect on Credit Reports

Speaking of confidence, understanding the consequences of settlements, and therefore cutting down on unpleasant financial surprises is a great way to build fiscal responsibility. The in-debt party must understand how much a settlement will potentially affect their credit report, and how much they are able to pay at the end of negotiations. Other important elements to consider include:

• Debts forgiven above $600 USD can be taxed.
• It’s beneficial to emphasize how debts were settled to credit reporting agencies, as credit scores may have already been weakened by delinquent payments.

Michael Shane Gibson says, instead of allowing a creditor to mark the settled debt as “Paid Settled” or even just “Settled,” campaign for the debt to be labeled “Paid as Agreed.” This will lessen the negative aspect of the settled debt to a reporting agency.

Negotiate With Creditor

Once the above steps have been taken toward building confidence and understanding the individual’s financial position, it’s time to make the all-important call. Persuasiveness and staunchly pursuing clear goals are the key to success. Often, it takes more than one meeting or call with a creditor to reach an agreement that both parties can be satisfied with. If a representative seems difficult to communicate with or particularly unclear, attempt another call with a different representative. For an already stressful situation, its best to speak with an agent that is willing to help. Michael Shane Gibson explains that the best road to successful negotiations starts with a narrative that is clear and concise. Explaining the hardships that have been faced financially is a good way to build sympathy with the creditor. No matter how involved negotiations get, the amount that an individual can pay must not be overlooked or lost.

Finalize the Settlement in Writing

If a settlement is reached, it is important that it is reached in writing. The terms of both the credit report and the actual settlement should be part of a written agreement because it keeps not just the creditor, but the debtor accountable. As long as this agreement is upheld afterward, a person forgiven of debt can congratulate themselves: they’ve successfully negotiated their way out of bankruptcy!

In Conclusion

Michael Shane Gibson of Lexington, Kentucky says that yes, it is possible to go from the verge of bankruptcy to debt free in as little as 90 days if the debt has been delinquent for that amount of time, and negotiations are successful. As covered above, effective negotiations are all about confidence and an understanding of the best terms for both parties. Escaping bankruptcy and becoming debt free are more than possible with these tactics.