The definition of debt settlement is a third party who negotiates with lenders on behalf of the consumer. Debt settlement is a method of getting out of debt for the consumer’s who have fallen on hard times.

Debt settlement is one of the methods used by consumers when they fall behind on their unsecured debt obligations.  A debt settlement company may be able to reduce the consumer’s outstanding balances. The consumer may be asking why use a debt settlement company instead of trying to negotiate with the lenders themselves.  As a consumer you can take this approach, however one of the drawbacks is you will be working with multiple lenders. These lenders would want the agreed amount money upfront in order to settle your account. 

By using a debt settlement program, they will negotiate on your behalf and notice the lenders of your indications of using a settlement program.  The debt settlement program will set up a “trust/escrow account” for the consumer.  Each month the consumer is deposit an agreed to amount in order to start saving.  Once the account has reach at least half of the lowest outstanding balance of one your credit cards, the company will begin negotiations with the lender.

The consumer will now be making only one monthly payment instead of multiple payments over a set period of time.  It may take between 12 to 48 months to complete the cycle of reducing the consumer’s unsecured debt. 

So start today and contact a representative so they can answer all your questions so you can start living debt free!!

There seems to be a misconception that you cannot include credit cards in a bankruptcy.  This could not be more far from the truth.  In most cases credit cards are treated like any other debt for bankruptcy purposes.  The new bankruptcy law did make it more difficult to clear out some debts incurred within a short period prior to the filing of the bankruptcy.  The law in this area is basically the same as it was prior to the passage of the new bankruptcy amendments.  Certain debts can survive the bankruptcy if a creditor files papers with the bk court requesting that the debt survive and the court agrees with the original creditor.  The process is not automatic however and you have the opportunity to dispute what the creditor is saying.

Get Advice From A Bankruptcy Lawyer If You Have Any Questions About Bankruptcy Continue Reading »

“If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.  The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”  Thomas Jefferson

Is It Harder To File For Bankruptcy Now? Continue Reading »

When you settle debts through a debt negotiation program, will you get a 1099 for what you save? You will not get a 1099 if you can demonstrate that you are financially insolvent. IRS Publication 908 states that you must owe more than you have in assets at the time of the debt settlement agreement with your creditor. You would only pay tax on the amount of solvency you have. If you save $5000 on a debt settlement agreement and have $1500 in assets, you would pay tax on $1500. Speak with a tax adviser or tax professional to see how this would apply to you before registering into a debt settlement program.

Do I have to pay income tax if I am in a debt negotiation program? Continue Reading »

BK is an acronym for the word bankruptcy. Bankruptcy is a legal action that you can take when you cannot pay your bills. A bankruptcy can stay on your credit for up to 10 years and you wont be able to buy a home for at least two years. You best bet is to try and avoid a bankruptcy at all cost.

For bankruptcy alternatives go call toll free 1-888-368-6668 or go to DebtNegotiationZone.com

I have Questions about bankruptcy – What are the most common BK questions

Some Bankruptcy questions can be difficult to get an answer to when you are just starting out in the process. This article is designed to answer the most common bankruptcy questions and give you bankruptcy information to help give you peace of mind. Whether you are filing a chapter 7 bankruptcy or a chapter 13 bankruptcy, the information in this article will be very important to become familiar with. Dealing with Bankruptcy companies and attorneys does not have to be scary. Here are some of the most common questions about the bankruptcy process. Continue Reading »

Debt Settlement vs. a Home Equity Line to pay of your Credit Card debt

Getting yourself into debt can be a scary as well as a frustrating experience. Getting hounded by debt collectors night and day can be exhausting as well as emotionally draining. But there are options that you can take to take care of the problem quickly. The two that we are going to discuss in the article are refinancing your home to pay off the debt or doing a debt negotiation program. Continue Reading »

Can I negotiate my bills myself? Debt Negotiation, Debt Mediation or Debt Settlement is something that you can probably do on your own if you have a little education behind you. The first thing I would get familiar with is the Fair Debt Collections Practices Act of 1977. If you have thick skin for dealing with nasty and abusive creditors calling you all the time I would say do it. If you do not want the hassle you may want to hire a third party debt settlement company to handle your old collections. Continue Reading »

10 Tips on how to do your own Debt Negotiation and work with collection agencies, bill collectors and creditors

If you are going to do your own debt negotiation you are probably going to go up against a tough and aggressive pro. By following these steps you can take the upper hand and save yourself thousands by doing a debt settlement.

I think the first step in the game is to know what the rules of debt collection are. The more information you know about debt collection practices, the less harassment you will get. If a debt collector knows that you know the game, they probably wont mess with you as much. You need to become very familiar with the Fair Debt Collection Practices Act of 1977. You can also get a free booklet for the rules of debt collecting form the National Consumer Law Center. Continue Reading »