Frequently Asked Debt Relief Questions
On this page, you can find some informative answers on many commonly asked
debt relief questions. At the
Law Office of Simon Goldenberg, PLLC, our New York debt relief lawyer has provided answers to these frequently
asked questions for the purpose of helping debtors obtain relief from
their financial disaster. Our goal is to help our clients eliminate their
debt by utilizing all legal means. As your debt relief agency, we can
help you take the next step to obtain debt relief. Once you have read
through the following frequently asked questions, take the next step and
schedule a free case evaluation.
Have Questions? Speak To Our Debt Relief Lawyers Today!
Call (888) 301-0584 or
schedule a free evaluation.
Questions About Bankruptcy
Qualified individuals can seek to discharge certain debts by filing for
Bankruptcy. Learn how to qualify, what debts can be discharged, credit
ramifications, and the costs to file for Bankruptcy, as well as other
frequently asked questions.
Questions About Student Loans
Learn about student loan forgiveness options, payment plans, defense from
lawsuits, and the differences between federal and private student loans.
Read about various resolution options including debt consolidation, loan
rehabilitation, and negotiating settlment reduction on defaulted debts.
Questions About Business Debts
When business debts become overwhelming, it important that the business
owner takes stock of their options. Obligations such as business loans,
merchant cash advance, SBA Loans, and debts owed to vendors can sometimes
be restructured into affordable monthly payment, or sometimes they could
even be reduced to a lower balance in a settlement negotiation. If the
business debt progresses to a lawsuit, taking prompt action is imperative.
Questions About Lawsuits & Judgments
Legal matters require serious attention. Learn about the consequences
of a default judgment, and how your wages can be garnished or your bank
account frozen if you ignore a lawsuit. Having a knowledgable attorney
to represent you can make a significant difference in how your matter
is disposed in court.
Questions About Credit Repair
Avoid credit repair scams and overpriced credit monitoring solutions by
obtaining an absolutely free credit report and FICO credit score. Fixing
bad credit can take time and determination. Learn how you can dispute
your credit with the bureaus free of charge. However, in some sticky situations,
you could benefit from the assistance of an experienced legal advocate
to ensure that the credit bureaus correct any incorrect or unverifiable
information, sparing your credit score from unecessary harm.
Debt Relief Questions
What should I do if I am being harassed by debt collectors?
If you are a victim of abusive or harassing debt collection actions, you
must learn about your rights. Your first step should be to obtain information
on the Fair Debt Collection Practices Act (FDCPA) and the Fair Crediting
Report Act (FCRA). You may even be entitled to a statutory award of up
to $1,000 in addition to actual damages.
How to reduce credit card debt?
Once a credit card is in default, has been charged-off, and/or sent to
collections, the balance can usually be negotiated. Although the creditor
has no obligation to accept a reduced payment, they will oftentimes consider
a settlement when they believe that their ability to collect the full
balance is limited. Especially is situations where the debtor has genuine
financial hardship, the creditor may be more inclined to permit a reduction.
However, the creditor may elect to bring a
credit card lawsuit at any time after default, and as such, most debtors would rather get
into a settlement sooner rather then later.
Can credit card debts be cancelled or discharged?
Unsecured credit card debts are the most common type of debt for people
to seek a discharge. Credit cards can be included in both for Chapter
7 and Chapter 13 bankruptcy. In a Chapter 7 bankruptcy, a qualified filer
may discharge their revolving credit lines in full. However, in a Chapter
13 bankruptcy, the debtor will enter into a payment plan with the creditor
for a duration of 3 to 5 years. Seeking a discharge of your credit cards
debts in bankruptcy could be a potentially quick and affordable form of
debt relief, howevery, our attorneys encourage borrowers to explore other
possible remedies, such as debt reduction and/or credit card lawsuit defense
- while exploring bankruptcy as an option of last resort.
Can I get a lower interest rate on my
credit card debts?
Some lenders will periodically review accounts to ensure that the effective
interest rate and other terms properly reflect their current offering
in light of market rates. However, a borrower can proactively request
to have their credit card account reviewed by the lender to see if they
qualify for a rate reduction. Reducing the interest rate will effectively
reduce the amount of interest that accrues on a revolving fast, which
means, a borrower can potentially
get out of credit card debt more quickly.
How to reduce medical bills?
Medical bills can sometimes be resolved in ways that are unavailable to
other types of debts. Many physicians, hospitals, and clinics will allow
for reasonable payments plans and sometimes balance reductions in situations
where the patient can exhibit financial hardship. Learn about how you
might owe a medical debt even if a contract doesn't exist. Lastly,
bankruptcy could be an effective approach to eliminating a large amount
of healthcare related debt and doctors bills in a relately short period of time.
How will debt relief affect my credit?
The answer to this question depends entirely upon the type of debt relief
that you pursue. If your debt relief includes a payment plan, you must
make the required payments to your creditors and ensure that you do not
break the terms of your agreement. If you are delinquent, it will be reported
to the consumer reporting agencies. If you pursue bankruptcy, damage may
be done to your credit, but this can be repaired through financial responsibility
after the discharge of your debts.
Can I negotiate with my creditors on my own?
Yes, you are able to negotiate with debt collection agencies and creditors
on your own. The most effective route to take, however, is to obtain the
experienced assistance of a New York debt relief lawyer. The debt relief
program can be a complex and time-consuming process when handled on your
own. We understand the aggressive and strategic approaches that should
be taken when dealing with creditors and we can provide you with the experienced
assistance you need. We can negotiate with creditors on your behalf for
maximum debt relief opportunities.
garnish my wages?
In order for your creditors to take the legal action of wage garnishment
against you, a judgment must be issued. After a judgment is issued, the
creditor will need to file for wage garnishment prior to that action being
fulfilled. If your wages are being garnished or if a judgment has been
placed against you, we can help you work toward resolving this matter.
After you receive a summons, immediately contact our firm.
What is a 1099-C?
Receiving a Form 1099-C for cancellation of debt does not mean that your
obligation to repay the underlying debt has been extinguished. A 1099-C
form is filed for tax purposes when certain triggers arise, such as when
the creditor has been unable to collect and has deemed it uncollectable.
A 1099-C can cause tax liability. If you pay taxes due to a 1099-c and
you subsequently pay back a portio of the underlying debt, you may be
elegible to request a refund for the taxes which were overpaid. When a
debt is settled with a forgiveness of at least $600, the creditor will
file a 1099-C to report the amount forgiven, which can be held as taxable
income for the borrower. Speak to a certified tax professional to learn
how debt forgiveness may affect your tax liabilities.
Do I need to pay a debt that is charged-off on my credit report?
Generally, a charged-off account can still be collected by the creditor
and it's agents. A
charge-off is a declaration by the creditor that the debt is unlikely to ever be
collected, however, it does not eliminate the actual obligation to repay the debt.
What is the difference between "Delinquent" and "Default"
When an account is paid on time, the status is considered to be
current. When a few payments have been missed, accounts are generally considered
delinquent. Oftentimes, loans that are in delinquency can be cured by making up the
missed payments. However, when enough payments are missed, the account
may be closed or
charged-off, and the entire balance becomes due. This is called
default status. Many credit card issuers will charge-off an account when the borrower
misses 6 consecutive monthly payments. In contract, many private student
loan lenders will wait about 270 days (9 months) before considering an
account to be in
student loan default. One critical distinction between the various status' is that in order
to attempt negotiating a settlement reduction, an account must usually
be in default status.
What is Compound Interest?
Nearly every loan will include an interest component, but banks and lender
might apply the interest differently. Typically, interest on loans are
compounded on a regular interval, whether its daily, weekly, monthly,
or annually. Such terms would be set forth in the lending agreement. Compound
interest can cause a balance to grow quickly. Find out what compound interest
means and how it affects your loan payments.
How to stop debt collector phone calls?
It can be nervewracking to be at the receiving end of incessant calls
from debt collectors. If you want to resolve the debt, speaking to the
collectors might be necessary. However, if your goal is to stop the phone
calls, there may be several remedies available. For example, you could
mail a letter to the collector demanding that they cease & desist
further contact, or that they limit their contact through certain channels.
Alternatively, in some situations it might make send to file bankruptcy
to stop all the collection activity and discharge any eligible debts.
Do you have further questions?
If you have received a court summons or are being harassed by creditors,
you will need substantial information on how these can be resolved. Do
not try to navigate this circumstance alone! Take aggressive action today
by speaking to our firm to learn how we can help.
Contact the Law Office of Simon Goldenberg, PLLC for the representation you deserve!