debt settlement
- For some people, bankruptcy is not a good solution. They may have too much debt of certain types (see Limitations on Filing Chapter 13 Bankruptcy), income that is too high for a Chapter 7 Bankruptcy (see Limitations on Filing Chapter 7 Bankruptcy), or so much income that in bankruptcy they will have to repay 100% of their debts plus 10% f
- For some people, bankruptcy is not a good solution. They may have too much debt of certain types (see Limitations on Filing Chapter 13 Bankruptcy), income that is too high for a Chapter 7 Bankruptcy (see Limitations on Filing Chapter 7 Bankruptcy), or so much income that in bankruptcy they will have to repay 100% of their debts plus 10% for the Chapter 13 Trustee’s administrative costs, and take a massive hit on their credit rating in the process.
- Debt settlement is not for everyone, but for those with some ability to pay, we offer debt negotiation and settlement services as a way to resolve debts at a discount.
- Unsecured debts like credit cards and medical bills can be negotiated and settled for less than the full balance if the client has the ability to pay the settlement in a single payment or a few payments a short period of time. Through the process of debt negotiation and settlement we work with your creditors to find satisfactory and affordable repayment terms and keep you from falling further in debt.
- The assistance of an experienced debt negotiation attorney is crucial. Without the backing of federal bankruptcy and fair debt collections law, the ordinary consumer is at a total disadvantage trying to negotiate with the banks and credit card companies.
- The Law Offices of David P. Gardner provides understanding and compassionate debt negotiation representation to clients throughout Northern California and the entire San Francisco Bay area. We work closely with you to determine an affordable payment arrangement before negotiating aggressively with your creditors on your behalf.
- A Proven Alternative: Debt negotiation and settlement is a viable alternative to bankruptcy as a strategy eliminate your unsecured debts. The process may also help you rehabilitate your credit rating faster than if you filed for bankruptcy.
- The debt negotiation process can be invaluable if you are struggling to keep up on your payments, allowing you to find a more affordable amount in an effort to help you catch up on your debts. The process can be more affordable than Chapter 7 bankruptcy, takes less time to see results, and does not put a bankruptcy on your credit reports.
- A possible drawback of debt settlements is that they may result in income tax consequences. Although debts discharged through bankruptcy never result in imputed income, debt that is “forgiven” (the difference between what was owed and what was paid to settle) is considered by the IRS to be equivalent to income, and your settling creditors are required by federal law to issue a 1099 any time they forgive more than $600 of debt. However, consult with your tax professional or a tax attorney regarding the affect of being insolvent at the time debt is forgiven; the IRS code may provide an exception to taxation of “imputed income” from forgiven debts if you are insolvent at the time the debt is forgiven.