Should you decide not to file bankruptcy, you can hire our firm to negotiate a settlement with your creditors. You must have some funds available to pay off the settled amount to your creditors over time (usually 3-5 years) or pay lump-sum payments to each creditor.
Do not waste your money if you are not diligent and self-disciplined about saving and paying off debt. It has been our experience that unless you can save and pay off the creditor over time for the settled amount or able to pay lump sum payments on the settled amount, it may not be beneficial to settle your debts. You need to be realistic and also consider whether you can afford to make the negotiated payments. Otherwise, you may be stalling the inevitable and have to file bankruptcy anyway after paying this money to creditors.
Most of the time, we have been able to settle foreclosed home mortgage loans for 10% or less of the amount owed. This settlement, however, depends on the mortgage company. Credit unions are usually more challenging to negotiate. If you put less than 20% down and had private mortgage insurance (PMI), you may have to settle with the private mortgage insurer. Private mortgage insurance companies are more likely to sue. If you get sued, you will probably also have to pay a higher settlement amount because now the mortgage lender has to hire an attorney and pay attorney fees and court costs.
We can usually settle credit card debt for 25-50% of the debt. This settlement also depends on which company, if you recently took out a cash advance, how old the debt is, etc.
Remember that you may be taxed (issued a 1099-C) for any debt forgiven by your creditors. A good accountant will probably be able to minimize or eliminate the tax you will have to pay, but it depends on your assets and liabilities.
Credit card companies have six years from the last inquiry or contact to sue you for the debt. If they sue you within that time and obtain a judgment from the court, they can collect from you forever as that judgment is renewable every six years. They can garnish your paycheck, place a lien on your property, and tap your bank accounts and garnish all the funds in your account.
It would be best if you took care of your debt by filing bankruptcy or settling your debt sooner rather than later. It is better to get peace of mind and not worry that you will be sued at some point for the debt plus fees and interest. Once the debt is behind you, you can get on with your life rather than worry about the creditor obtaining judgments, garnishing your monies, and putting liens on your property.
You need an experienced debt settlement and bankruptcy attorney to advise you and act in your best interests. Contact Debt Rescue Law for a FREE consultation at (833) 707-1234.
Debt Rescue Law is committed to helping you regain financial stability. This is why we will represent your best interests in obtaining a debt settlement. We are so confident in our legal services that we guarantee satisfaction. If a Debt Rescue Law attorney fails to provide a settlement agreement Debt Rescue Law will give you a full refund. How many other settlement law firms can make this promise? We stand by our word so that way you can rest assured.