Debt Settlement
$ in debts settled to date.
Debt Settlement vs. Bankruptcy
Over $105,000 debts settled.
Debt Settlement may be a good option for those seeking to preserve their credit scores. Debt settlement will have minimal impact on credit scores. Bankruptcy, on the other hand, can have an immediate and negative effect on one’s credit score.
If you are buried in excessive debt or simply have that “one problem account”, debt settlement or debt negotiation, may be a viable alternative to bankruptcy. Through debt settlement, we can potentially reduce your interest rate, reduce or eliminate late fees, work out a feasible repayment schedule, and potentially obtain a reduction in the amount you owe.
A significant disadvantage to debt settlement involves tax consequences. The amount of debt that is settled or forgiven is treated as taxable income. Generally, you will have to pay taxes on the total amount of debt that is forgiven. For those with significant amounts of credit card debt or medical bills, the resulting tax liability may be insurmountable. In some situations, the tax burden alone can be reason enough to pursue bankruptcy instead. It is important to note that taxes are typically not dischargeable in bankruptcy.
Debt settlement is not for everyone. In some cases, Chapter 7 bankruptcy may be a better option for permanently wiping away unsecured debt while not paying anything back to creditors. If your creditors do not agree to settle the debt you owe, you may end up having to file bankruptcy anyway.
At Peterson Zeyer Law we have over 30 years of experience helping individuals obtain freedom from debt. Whether you are considering debt settlement, bankruptcy, or any other options, we can help you evaluate your options and put together the best possible plan of action for your particular situation.
Call (208) 433-9882 for a FREE consultation.
Over $105,000 debts settled.
Debt Settlement may be a good option for those seeking to preserve their credit scores. Debt settlement will have minimal impact on credit scores. Bankruptcy, on the other hand, can have an immediate and negative effect on one’s credit score.
If you are buried in excessive debt or simply have that “one problem account”, debt settlement or debt negotiation, may be a viable alternative to bankruptcy. Through debt settlement, we can potentially reduce your interest rate, reduce or eliminate late fees, work out a feasible repayment schedule, and potentially obtain a reduction in the amount you owe.
A significant disadvantage to debt settlement involves tax consequences. The amount of debt that is settled or forgiven is treated as taxable income. Generally, you will have to pay taxes on the total amount of debt that is forgiven. For those with significant amounts of credit card debt or medical bills, the resulting tax liability may be insurmountable. In some situations, the tax burden alone can be reason enough to pursue bankruptcy instead. It is important to note that taxes are typically not dischargeable in bankruptcy.
Debt settlement is not for everyone. In some cases, Chapter 7 bankruptcy may be a better option for permanently wiping away unsecured debt while not paying anything back to creditors. If your creditors do not agree to settle the debt you owe, you may end up having to file bankruptcy anyway.
At Peterson Zeyer Law we have over 30 years of experience helping individuals obtain freedom from debt. Whether you are considering debt settlement, bankruptcy, or any other options, we can help you evaluate your options and put together the best possible plan of action for your particular situation.
Call (208) 433-9882 for a FREE consultation.