Do's and Don'ts of Debt Settlement
Chicago Debt Settlement Lawyer
No matter how you have reached the point of overwhelming debt, it is important
to realize that you have options. Debt settlement can allow you to save
up your money to pay one large sum rather than smaller debt payments.
In many cases too, you can negotiate with your creditor to pay back a
smaller sum than what you owe.
Before stepping into the debt settlement process, it is wise to look at
what you should do and what you should avoid doing. Speak with a
Chicago debt settlement attorney from Whiteman Borden, LLC if you have any further questions. This is
your financial future and one minor mistake could have a significant impact.
Don't wait until it is too late; be proactive in your approach.
Many creditors will "write off" your account after about 6 months
without payment. This does not mean that they are forgiving your debt,
but rather that they are saying your account is charged-off and they do
not expect payment anytime soon. This can be detrimental when trying to
pursue debt negotiation. The longer you wait, the less likely they may
be too to settle your debt, as they otherwise see you as a financial risk.
Don't forget to consider the consequences.
It is important to realize that any amount of debt that is forgiven by
creditors is still taxable, as long as it is over $500. Debt settlement
could also potentially leave a bad mark on your credit report and will
make it more difficult to take out loans at affordable rates.
Do prepare all your financial records.
When creating a debt settlement agreement with creditors, they will want
to take a detailed look at your income, your assets and your debts. Creditors
do not want to make settlement negotiations with people who are just trying
to save money. They will look to make certain that you are in a dire place
and truly unable to pay back your debt.
Don't create a plan you cannot keep up with.
In some cases, a debtor may negotiate to pay their creditor back over
a certain period of time. It is essential that if you go this route, that
you make a repayment plan that is attainable. Creating a plan that is
too lofty will only hurt you down the road and cause you to fall back
into unmanageable debt once again.
Do follow through and make sure the matter is cleared.
When all is said and done with a debt settlement arrangement, check your
credit report to make sure the creditor marked off your debts as settled.
Even though this is required by state law, many creditors will fail to
do so and end up leaving individual's credit reports with supposed
delinquent debts that are nonexistent.
Contact Whiteman Borden, LLC
When faced with the possibility of
foreclosure, it is critical that you consider all of your options. By scheduling a
free consultation with
Whiteman Borden, LLC, not only can you discover what plan of action is best for you, but we
will do this without any obligation attached. We understand that you may
feel trapped and alone in this trying time; we are here to provide solutions.
returning phone calls and emails within 24 hours, please do not hesitate to get in touch with our office today. Placing
our clients as our top priority, you have nothing to lose by calling our
Chicago debt settlement attorney at
(312) 234-9434 today!