Is Settling Debt Right for You?
Many people who are struggling with debt are willing to take a number of steps before filing for bankruptcy, fearing that bankruptcy will damage their credit and hurt their reputation. One of the most common steps people take is seeking a debt settlement. While this can be effective, it can also be costly, both to your finances and your credit rating, when compared with filing bankruptcy.
At the Price Law Firm, with locations in Orlando and Altamonte Springs, Florida, our Bankruptcy lawyers can help you explore your bankruptcy options and determine if it is the right step for you. We have more than 20 years of experience and are committed to helping people find solutions to difficult financial challenges.
Are you struggling with overwhelming debt and considering a debt settlement? For a free consultation with an experienced attorney, call 407-834-0090. You can also contact us online.
The Downside of Debt Settlement
The major problem with debt settlement is that you have to pay. With the average debt settlement resulting in paying 50 cents on the dollar, that can be a significant amount of money for you and your family. In contrast, if you qualify for Chapter 7 bankruptcy, you may pay nothing.
Another issue is that even as you pay off your settlement, your credit is still damaged for years, unlike bankruptcy, which provides you with an immediate opportunity to rebuild your credit rating over the first year.
Taxes are another consideration as the Internal Revenue Service will consider your debt settlement to be income, resulting in increased tax liability despite your challenging financial situation. To learn more about your debt relief options, contact us today for a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.