With the new age debt laws, having huge unconsolidated unsecured debts does not worry people as much as it used to. People no longer just look towards bankruptcy as the only option to support their ailing finances. They are much more aware of options like consolidation, settlement and credit counseling However a certain portion of ridden people still remain skeptical about the uses of debt settlement deals. They have certain...more
Huge unsecured debt makes it impossible for the debtor to lead a normal life with the creditors after their money and finances going to dumps. In this case bankruptcy is not the only possible option with the new age options like debt settlement. Debt consolidation, credit counseling and lower down payments. Each option carries with itself its set of good and bad points. However all of them can reduce your debt greatly or make it...more
With the current economic scenario everyone is desperately finding ways to eliminate their debts. Credit card debt negotiation has become one of the most popular systems for attaining debt freedom. Many people have lost jobs or have had their salaries reduced during the recent economic slowdown. For them it is difficult to meet their daily expenses and keep up with their debt payments. Credit card debts can seriously weigh down anyone's financial conditions. Settlement provides a quick solution to debt problems.Who can get debt settlement?A debtor having at least ten thousand dollars in unsecured debt can benefit from this relief program. Creditors are willing to settle accounts which is about to be sold to the collection company or if the debtor is about to file for bankruptcy. They usually see if the account id past due by at least 90 days before they settle the account.Can the debtor negotiate debt himself?The negotiation process is simple hence a debtor can go ahead with the negotiation himself. There are settlement companies which specialise in these settlements. Most debtor opt for a settlement company as they know all the loop holes in banking law and can...more
Credit card debts when get out of hand can make you miserable. This is a debt which gets heavier with time. It is easy to plan ways of getting rid of your debts but difficult to execute them. There are a few steps that you can follow in order to pay off your debts as quickly as possible.1. List out all your debts: You will have to...more
One of the most popular options for coming out of debt is debt settlement. The unsecured debts charge higher interest rates than the other loans. The biggest problem is the credit card debts which can easily get out of hand as it is generally unplanned expenditure. One should try to clear their debts as soon as possible. Debt...more
The market is slow in recovering from its recent economic crash. Most of us are still deeply into debt. For those having huge amount of debt in unsecured debts can take help of debt settlement to clear them off. Creditors offer debt settlement on those accounts where they think the investment has gone bad and chances of recovering that money is less. This debt relief method does have a negative impact on the credit score. You should also be aware that the forgiven amount will be subject to taxes. One should not worry about the taxes as the overall amount that has to be paid to the IRS will be much less than the amount you would have had to pay to your creditors.If the settlement amount is more than six hundred dollars then the creditors have to inform IRS of the settlement amount. However, if the settlement amount is less than six hundred dollars the debtor has to track and inform the IRS of the amount. If you have employed a settlement company then they will be informing the IRS on your behalf. They also look into the fact if the customer is eligible for exemption. For example, if the customer was close to insolvency then he will be exempted from the taxes.Due to...more
When any financial institution settles a portion of your debt, then they issue a 1099-C. This 1099-C reflects the amount that has been settled. The IRS will consider the amount mentioned in 1099-C as taxable. This tax can only be...more
For a long time the best way of getting out of debt had been bankruptcy. However, people have learnt that bankruptcy is not the best option for those in financial trouble. This is not only because of the effect it has on one's credit...more
A debt settlement attorney is an expert in negotiating with creditors and financial institutions on various types of loans. They also give tax related advice to their clients who are trying to get out of debt. A lot of people have come...more
he direct tax paid by the people constitutes a major part of the revenue for the government. Hence, it is mandatory for everyone to pay their taxes. Evasion of taxes is a crime and an unpardonable offence. Tax laws applied not only to...more
People who have faced unemployment due to the recent economic recession find it hard to pay off their debts just like those who are facing financial difficulty due to other reasons. Debt settlement is the most common sought of relief...more
The recent trend shows that more and more people are opting for debt relief options in order to come out of their debts. People are becoming aware of the fact that paying only the minimum on your account does not help in bringing down...more