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Resolving TD Bank Debt Through Settlement – A Helpful Guide
If you are struggling with debt owed to TD Bank, you are not alone. Many Americans face financial hardship and fall behind on credit card or loan payments. However, even if TD Bank is pursuing collection against you, there may be options to resolve your debt through settlement.At our financial services company, we understand how scary and stressful debt collection can be. We assist people in negotiating debt settlements with creditors like TD Bank every day. Our goal is to provide information to help you understand the debt settlement process, your rights, and how to get the best resolution to your unique financial situation.
What To Know About TD Bank
TD Bank, also known as TD Bank N.A. or TD Bank USA, is an American national bank and subsidiary of the Toronto-Dominion Bank based in Canada. It acquired Target’s credit card portfolio and accounts in 2013 – so if your debt is from a Target credit card, TD Bank now owns that debt.TD Bank is one of the largest banks in America. But even if you never banked with TD directly, it may be pursuing collection against you for old Target credit card debt. When creditors like TD Bank fail to collect debt through traditional methods, they often turn to debt collection lawsuits.
Understanding Debt Collection Lawsuits
If TD Bank sues you, they are likely represented by a law firm that specializes in debt collection litigation. Some firms they use include Rausch Sturm Israel Enerson & Hornik LLC and Javitch Block LLC.Being sued can be scary. But keep in mind – under the Fair Debt Collection Practices Act, collectors cannot harass you or make false statements. You have certain rights and protections.And even if you are sued, you may be able to negotiate a settlement or payment plan. An experienced debt relief attorney can help you understand all your options and defend your rights.
Your Options When Sued By TD Bank
If TD Bank takes you to court, you have options – including settling or filing bankruptcy. But ignoring the lawsuit is the worst approach. That allows TD Bank to get a default judgment against you.Instead, work with a debt resolution lawyer to respond properly. Make TD Bank prove their claims. Often, they lack sufficient evidence to win in court.An attorney can also help you try to negotiate a settlement before or during litigation. Many creditors are open to settling debt for a fraction of the amount owed. Even if a lawsuit is filed, settlement may still be possible.
How Debt Settlement Works
In debt settlement, you work with a resolution company to negotiate a lump sum payoff amount that is less than the full debt owed. This can save you thousands of dollars.Here is a step-by-step overview of how the debt settlement process works:
- You stop making payments to TD Bank. Instead, you save money in a dedicated account.
- The resolution company contacts TD Bank to initiate settlement negotiations.
- TD Bank is presented with financial details showing you cannot afford to pay in full.
- Multiple rounds of offers and counter-offers occur until an agreement is reached.
- Once settled, you pay TD Bank the negotiated lump sum from your savings.
- TD Bank files paperwork showing your debt as fully resolved for a fraction of the amount owed.
Settlements typically resolve debt for 30-60% less than the total balance. And the remaining debt is forgiven. An experienced settlement company will fight to get you the maximum savings.
What Makes a Strong Settlement Candidate
The best debt settlement candidates have:
- Debt owed to creditors open to negotiating – like credit card companies. Medical or student loan debt is typically not ideal for settlement.
- $10,000 or more in total unsecured debt. Smaller debts usually won’t settle for enough savings to be worthwhile.
- Fallen behind on payments by at least 3-6 months. Creditors are more motivated to settle debts in serious default.
- Steady income that covers living expenses with some left over. This allows you to save up for settlement offers.
- The discipline to adhere to a strict savings plan for 12-48 months. Time and consistent savings are required to settle successfully.
If this sounds like your situation, debt settlement may be a viable debt relief option for you.
What Settlement Could Save You
Let’s look at some examples to understand your potential savings from settling with TD Bank:
- If you owe TD Bank $15,000 on a credit card, you may be able to settle this debt for around $6,000 – resolving it for 40% of the amount owed.
- For a TD Bank debt of $20,000, you may be able to settle for approximately $8,000 – equaling savings of 60%.
- On a $25,000 TD Bank credit card balance, potential savings could reach $15,000 or more – allowing you to settle for only 40% of what you owe.
As you can see, the savings from debt settlement grow as your balances and burdens increase. A resolution firm can help maximize your savings potential.
The Debt Settlement Process Step-By-Step
If you decide to pursue debt settlement with TD Bank, here is a detailed overview of what you can expect:
- You sign up with a settlement company. Reputable firms charge fees as a percentage of enrolled debt as it is settled – meaning no upfront fees.
- Stop paying TD Bank. You instead save money in a dedicated account to fund settlement offers.
- The firm initiates talks with TD Bank. Negotiations start with review of your finances and settlement proposals.
- Multiple rounds of offers occur. The firm negotiates the lowest possible lump sum settlement amount.
- TD Bank agrees to settle. This process takes 12-48 months depending on debt amount.
- You pay the settled amount. The firm ensures proper paperwork is filed for debt resolution.
- TD Bank forgives the remaining balance. Your credit report will show the debt as “settled.”
Throughout the process, a good settlement company will provide coaching and support to help you save and reach settlement.
Can Settling Debt Impact My Credit?
Debt settlement will likely have some negative impact on your credit:
- Unpaid debts will show as delinquent while saving up to settle.
- Settled accounts are marked “settled for less than owed” on your credit report.
However, settled debts fall off your credit report after 7 years. And a settlement company can provide advice for rebuilding credit. Getting out of debt is most important.
Why Settlement Makes More Sense Than Bankruptcy
For many with unmanageable debt, bankruptcy seems like the only option. But it should really be an absolute last resort. Bankruptcy has serious long-term consequences:
- You must surrender all non-exempt assets – including property.
- It remains on your credit report for 10 years and badly damages scores.
- You still have to pay back some debts like taxes and student loans.
- It costs thousands in legal fees and trustee payments.
- You cannot file again for 8 years if you need it in the future.
Unless you have no other choice, bankruptcy is rarely the best debt solution. Settlement allows debt reduction without damaging your financial life long-term.
You Have Options – Don’t Go It Alone
If TD Bank is suing you or you are overwhelmed by debt, realize you have options. Debt settlement is one alternative to reduce what you owe and avoid bankruptcy.Our financial services company has helped thousands settle their debts for a fraction of what they owe. We can help you too – with compassion and care. You don’t have to face debt burdens alone. We offer a free consultation to review your situation and debt relief options.