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What is a Debt Settlement?

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  • What is a Debt Settlement?


    Debt Settlement is the process of negotiating your debts with the intent of obtaining a reasonable settlement. The negotiation process is quite daunting and requires constant monitoring and being educated about debt collection laws. A lender will usually settle if you meet the criteria or qualify for debt settlement.

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    Shah Peerally is an attorney licensed in California practicing immigration law and debt settlement. He has featured as an expert legal ****yst for many TV networks such as NDTV, Times Now and Sitarree TV. Articles about Shah Peerally and his work have appeared on newspapers such as San Jose Mercury News, Oakland Tribune, US Fiji Times, Mauritius Le Quotidien, Movers & Shakers and other prominent international newspapers. His work has been commended by Congress women Nancy Pelosi and Barbara Lee. He has a weekly radio show on KLOK 1170AM and frequently participates in legal clinics in churches, temples and mosques.

    For updates follow us onYoutube, Radio, Facebook, Twitter and LinkedIn. Shah Peerally Law Group PC deals in immigration law - and
    Attorney Shah Peerally also deals in debt settlement. For more information call us on 510.742.5887 and visit us on
    Information provided above is for educational purposes only. One should not act or refrain to act solely based on the information provided. You should consult an attorney to assess your case before proceeding.

  • #2
    But there is no more debt settlement companies and most of the people are not aware about the debt settlement. It is the effective way to pay your debt.The company will set down your whole debt into small installment that you can easily pay.
    Last edited by Edwin; 07-22-2014, 02:05 AM.


    • #3
      Objections to Debt Settlement
      There are five main objections to typical consumer debt settlement programs:
      • Damages credit
      • Increased collection calls
      • Possibility of lawsuits
      • Tax consequences
      • Need to settle with all creditors

      Damages credit -- anytime one chooses to not pay his or her monthly installments, credit will be damaged. The alternative is the high cost of maintaining that high credit score. Is it worth it to continue making those payments, to sacrifice one‘s money to continue to pay for something that only allows you to get more credit, to continue the downward spiral? Is it not better to pay the family first?

      Increased collection calls – let us handle those for you. Our Privacy and Response program provides a professional answering service to take the pressure off of you and your family. In addition, our operators cannot provide sensitive data that you or your family members answering the phone could inadvertently do.

      Possibility of lawsuits – in the US anyone can sue anyone else for anything. Creditors do sue, no question about it. Our system takes them through a maze of problems, making their collection costs ―out of the normal range‖ and, therefore, making our clients less likely to be sued. Does it happen? Yes, it does. And we can assist you with all the required paperwork to see you through it – and see you through it successfully.

      Tax consequences abound on debt relief-
      Many people are not fully informed of the tax consequences resulting from a settlement agreement. This is one reason to avoid any settlement agreements directly with the original creditor. You will have to pay federal income tax on the difference between what they said you owed and the amount you paid to settle the account. This is known as imputed income. Here's how it works.

      You negotiate with your credit card company to get your bill reduced from $10,000 to $5,000. You only have to pay Visa $5,000, but the Internal Revenue Service is likely to tax you on the $5,000 you didn't have to pay. If you are in the 30% tax bracket, that‘s $1500 in taxes due. A debt forgiven won't be forgotten by the IRS. They consider it earned and taxable income. In fact, your creditor will probably will send you a 1099 form detailing your miscellaneous income. Don't think you're free from the IRS if you don't get the form.

      There is a better way I would love to share with everyone.


      • #4
        There are many companies in market which is now offering debt settlement services. In this way you can pay all of your debts in installment to debt settlement companies which deal with a person or company to whom you have to pay debts.
        What your stock broker doesn’t want you to see


        • #5
          Originally posted by stockbrokers View Post
          There are many companies in market which is now offering debt settlement services. In this way you can pay all of your debts in installment to debt settlement companies which deal with a person or company to whom you have to pay debts.
          Can I have any such company?
          Get Hire slip and fall lawyers in Toronto


          • #6
            My friends using the services of a company "Trident Debt Solutions" they offer him to pay his loan in installment. And may be they still offering all these services for debt settlement.
            What your stock broker doesn’t want you to see


            • #7
              Thank you
              Get Hire slip and fall lawyers in Toronto


              • #8
                Debt Settlement entails making an offer to the credit card company to settle the amount you owe to them for a lesser amount. If The creditor agrees to the offer, you can go ahead and pay the whole settlement amount in one go, i.e in one lump sum. It must be noted, however, that your financial situation is scrutinized by both the creditors and legitimate Debt settlement companies to ensure that your hardship meets underwriting criteria. Some of the most common scenarios of hardships are sudden job-loss, divorce, medical problem etc.

                Most credit card companies would readily agree to debt settlement if your track record with payments isn’t that handsome because they also want to avoid the hassle of going through the bureaucracy of filing a lawsuit, obtaining a judgement and then trying to collect on the judgement.
                Last edited by gabriel; 10-20-2016, 01:42 AM.
                Need Any Advice?
                Tax Attorney


                • #9
                  I am new member here. Just signed few minutes ago. I am glad to know about the debt settlement.


                  • #10
                    What is Business Debt Settlement?

                    Business Debt settlement, also known as debt negotiation. Business Debt settlement can provide financial relief and put them on the path toward rebuilding their credit.


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