Many borrowers in Los Angeles grappling with significant debt problems have suffered a financial hardship that has caused them to default on their loans. You may be able to negotiate a debt settlement if you are experiencing financial difficulties due to medical issues, divorce, or a loss of income due to death or unemployment. Additionally, you must be in a position to comply with the terms of the settlement. In other words, you must have enough savings or resources to make a lump sum payment or keep up with monthly payments.