If you are buried in excessive credit card debt, debt settlement — also called debt negotiation — may be a viable alternative to bankruptcy. Through debt negotiation, you 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.
Debt settlement is not for everyone. In some cases, Chapter 7 bankruptcy may be a better option for permanently wiping away unsecured debt. If your lenders do not agree to modify the debt you owe, then you may end up having to file bankruptcy anyway.
In some situations, however, debt negotiation is a wise choice. For those seeking to preserve their credit scores, debt settlement will have minimal impact on their credit. Bankruptcy, by contrast, can have an immediate and lasting effect on one’s credit score.
A significant disadvantage to debt negotiation involves the tax consequences. Generally, you will have to pay taxes on the total amount of any 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.
I am Christopher P. Walker, a bankruptcy attorney with over 25 years of experience helping individuals obtain freedom from debt. Whether you are considering bankruptcy, debt settlement or other debt relief options, I can help you assess the best possible course for your particular situation. As an experienced negotiator, I can also advocate on your behalf to help you obtain a fair debt settlement.
As a solo practitioner, I provide one-on-one legal service to help each client obtain a favorable outcome.
When you choose my firm, I will take the time to uncover the details of your situation and formulate tailored legal counsel to help you obtain financial stability. I will strive to help you feel comfortable and confident with whatever course you choose to pursue.
If you are weighing debt settlement versus bankruptcy, contact the Law Office of Christopher P. Walker, P.C., in Southern California for a free initial consultation. Call 714-639-1990 or send me an email. I offer affordable fees as well as evening appointments for your convenience.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.