DEBT SETTLEMENT

 

Knee deep in debt?  Behind on payments?  Receiving collection calls?  Afraid of getting negative reporting on your credit?  Debt Settlement may be the better option for you as an alternative to filing for a bankruptcy.  Doan Law Firm can help you negotiate with your creditors to reduce your outstanding debt.

 

At Doan Law Firm, we pride ourselves in providing outstanding legal representation to those unfairly being taken advantage of by major credit card companies and banks.  Since Doan Law Firm is recognized nationwide as one of the Largest Bankruptcy Filing Firms, filing thousands of Bankruptcy Cases each year, creditors really listen to us when we propose Debt Settlement to resolve debts with a token amount of money, as opposed to Bankruptcy where they get nothing at all.  Basically, the the creditor receives a Settlement Demand to pick Option A or B.  Option A is a Draft Bankruptcy Petition to show that the creditor would receive $0.00 if filed, and Option B is a Settlement Proposal.  The creditor then either picks $0.00 under Bankruptcy or the settlement proposal under Debt Settlement.  Keep in mind, that the Settlement Proposal also typically includes Claims against the creditor as well (see collection abuses) which makes the offer VERY APPEALING!

 

 PROS AND CONS OF DEBT SETTLEMENT:

Pros

  1. Avoid bankruptcy: Bankruptcy can hurt your credit, but debt settlement  may have less of an impact. You won’t have to worry about going to Court or the hassle of all the paperwork.
  2. Single payment: We like to offer one lump sum to creditors when negotiating to reduce your debt.  This will allow you to avoid the stress of making monthly payments and interest rates.
  3. Avoid unfair collection practices: Once you retain our services, we prepare letters for you to send to creditors to stop all communications and harassment from debt collectors regarding your debt.  The letters will notify debt collectors of your attorney representation.
  4. Avoid lawsuits and other legal actions: Creditors and/or collection agencies can file a suit to get a judgment lien and garnish your wages or levy your bank accounts.  You may be able to avoid these suits through debt settlement.

 

 Cons

  1. Credit Score Drop:  If you are behind on payments, this will still impact your credit report, but often times it can be noted as a disputed debt.
  2. You may owe taxes:  As part of debt settlement, creditors forgive a percentage of what you owe.  As such, the IRS may require you to pay taxes on this forgiven debt which is known as cancellation-of-debt (COD) income. You will need to address this with a  tax professional.

 

DEBT SETTLEMENT FURTHER EXPLAINED:

Under Debt Settlement, your bills are reduced without the need to file any Bankruptcy Chapter. Debt Settlement is an excellent alternative to bankruptcy if you have some money, but just not enough to entirely pay all your creditors. Typically, the entire debt load is cut in half or more.

Here are some examples of debt reduction:

  • Citibank $5000 reduced to $2000.
  • Tri City Medical Center $111,000 reduced to $8000.
  • Beneficial Finance $3500 reduced to $350.
  • $6000 lawsuit settled for $0.00
  • $175,000 insurance claim settled for $30,000

Since the creditors recognize the fact that we will simply file a Bankruptcy and eliminate their debt altogether, they pay a lot more attention to our Bankruptcy Firm than other organizations who have no Bankruptcy Experience.

Moreover, unlike other Debt Settlement firms, Creditors understand that once a Law Firm is involved, the debt can either completely vanish with a Bankruptcy Filing, or, it is much more work intensive and costlier to litigate  as opposed to pursuing an unrepresented debtor.  And this is especially true if there are counter claims against the creditor as well due to collection abuses.

 

So the playing field completely changes with Doan Law Firm defending the debts, offensively pursuing counter claims, and preparing to completely eliminate the debts thru Bankruptcy.  In no uncertain terms, the creditors are now dealing with a whole new animal in the collection arena that adds the new dimensions of risk exposure from counter suits and debt elimination thru Bankruptcy.  This sends fear to their collection files and they simply want to cash out as quickly, cheaply, and painlessly as possible.

Here at the Southern California Bankruptcy Law Firm of Doan Law, we pride ourselves in providing outstanding legal representation to those unfairly being taken advantage of by major credit organizations.

We have successfully settled hundreds of thousands of dollars over the past 17 years using our settlement proposals and anti-creditor abuse laws for those individuals where bankruptcy is not the best option.

You have specific legal rights which many of your creditors refuse to tell you regarding your personal debt. America has no “debtor’s prisons” and your mental and physical well being need not be controlled by your creditors.


For further information regarding or if you would like to speak to one of our Bankrupty Attorneys in San Diego, please CLICK HERE. Hablamos Espanol.

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Mike Doan - San Diego Bankruptcy Attorney, Southern California Phone: 800-380-3626

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