Debt settlement can be a great alternative for those who want to avoid bankruptcy, but it isn’t for everyone. In order to complete the debt settlement, you will usually have to make a lump sum payment, unless the lender agrees to accept monthly payments. And if the lender reports the settlement to the credit bureaus, you could see a significant reduction in your credit score if you have good credit. There are pros and cons associated with any debt-relief solution you choose and the best way to evaluate your options and make the right choice is to consult a qualified Los Angeles debt settlement lawyer.