Tax‑refund season brings a rare chance to settle credit card balances for pennies on the dollar—if you negotiate strategically.
Rule one: know your leverage. Under New York’s three‑year statute of limitations, claims older than that are time‑barred, pushing creditors toward concessions. Even newer accounts lose value once they land with debt buyers lacking documentation.
Rule two: start low but realistic. Settlements between 40 % and 70 % of the balance are common, but the exact figure depends on account age, documentation, and your financial hardship.
Communicate in writing. Phone deals without confirmation letters invite “gotchas” later. Insist on language that the payment constitutes “full and final settlement” and that the creditor will file a stipulation of discontinuance within 30 days.
Never give collectors direct access to your checking account. Use cashier’s checks or single‑use electronic payments through your attorney’s trust account.
At Georgiou Law, we often bundle multiple accounts into one global deal, reducing total payout and legal exposure while securing deletion of negative tradelines.
Credit scores can dip temporarily after settlement, but the long‑term benefit of eliminating litigation risk and balances usually outweighs the hit. We also position clients for rapid score recovery with post‑settlement credit‑builder strategies.
We work with an experienced credit repair company to help you achieve your goals.
Legal Disclaimer: Information herein is general in nature and not legal advice. Results vary and depend on individual circumstances.
⏰ Creditors won’t wait forever—and neither should you. Call Georgiou Law at (917) 764‑3072 to lock in a strategic settlement before your refund disappears.
