Debt Negotiation as a Bankruptcy Alternative
Bankruptcy may not be your only option for debt relief. I can help you decide.
When clients come to my office, many are wary of filing for bankruptcy because of the potential long-term consequences. Others are looking to file for bankruptcy, but are in a situation where bankruptcy may be unnecessary or unavailable.
In these and other cases, bankruptcy may not be the best solution. As an experienced bankruptcy attorney, I work with clients in matters of debt negotiation. Debt negotiation can be a viable bankruptcy alternative.
With 30 years of experience working with clients and creditors, I can help you through the process of debt negotiation. Call today for a free phone consultation at (949) 723-8441 or contact me by e-mail to set one up.
The Benefits and Drawbacks of Debt Negotiation
If you are going to negotiate with creditors regarding payment of your debts, it is important to understand that payment typically will either involve an extension of the time you have to repay the debt or an agreement for creditor to accept less than what is owed.
In debt consolidation, a new lender will negotiate all of the debt down to a certain level and then find you a loan to pay off that lump sum. I do not handle debt consolidation.
The debt negotiation I handle most often involves making a deal with each individual creditor to accept significantly less than what is owed. More often than not, the creditor will want to be paid in a lump sum.
In such situations, the success of the negotiation will depend on your ability to pay the agreed-upon lump sum. There are also tax implications of a reduced lump-sum payment agreement. When a creditor is willing to accept less than what is owed, the unpaid portion is "forgiven." That portion considered taxable income by the IRS.
Contact an Experienced Lawyer About Debt Negotiation
Facing overwhelming debt is difficult and stressful and it can happen to good people. My focus is on personal, compassionate attention for every client.
For a free phone consultation, call me at (949) 723-8441 or contact me by e-mail. I offer evening and weekend appointments for your convenience. Let me help you out from under the burden of debt.
Law Office of Jonathan R. Ellowitz