Debt settlement can be a viable alternative if you have non-exempt assets, or if you do not wish to file for bankruptcy protection. To settle a debt, we negotiate with your creditors to reduce the balance by 20% to 90%, depending on the situation. 


The percentage reduction of each settlement varies with each creditor, and it is dependent upon many factors, such as your employment status, the value of your non-exempt assets, and the amount of equity in your house and other real properties, etc.


debt settlementAs a general rule, creditors won’t negotiate with consumers who are current on their bills. They usually refuse to discuss settlement unless you are at least a few months behind in your payments.  


Even if a debt is settled, please be aware that your credit score will be affected each time you settle a debt.


You also need to consider the tax consquence of the settlement. Money saved in a settlement is generally considered earned income for tax purpose. 


Please consult your tax professional for your particular situation.

Disclaimer: Materials on this website have been prepared by Lo & Lo LLP for general informational purposes only. They are not legal advice. The transmission and receipt of information, through viewing, printing, e-mail or otherwise, is not intended to create or constitute an attorney-client relationship. Persons should not rely or act upon the information without seeking professional counsel. If these materials are not consistent with the rules governing attorney communications in a particular state, and the materials result in client contact in the state, Law Offices of Michael Y. Lo will not assume the representation of clients from those states. The materials contained herein do not constitute an offer to represent you. These materials may be considered advertising not complying with State Bar requirements in your state. 

Business Hours & Contact

Monday - Friday: 9 AM - 5 PM
Phone: (626) 289.8838

Main Office

506 North Garfield Ave., Suite 280
Alhambra, CA 91801

Get Direction
Los Angeles Office

1055 West 7th Street
Los Angeles, CA 90017

Appointment Only
Glendale Office

1010 North Central Avenue
Glendale, CA 91202

Appointment Only
Diamond Bar Office

20955 Pathfinder Road
Diamond Bar, CA 91765

Appointment Only
Irvine Office

2372 Morse Avenue
Irvine, CA 92614

Appointment Only


Proud to provide the San Gabriel Valley businesses and residents with expert legal services since 1981.