Legal Debt Resolution
Credit card debt settlement has become a solution for thousands of people across the country and, when managed properly, can result in significant savings. We here at The Mathys Law Group help Americans solve their financial problems and regain their financial freedom with our Debt Resolution Program.
First, I am a lawyer. My team negotiates with creditors on your behalf and shifts the power from the creditors to you. We believe in bringing the highest quality level of service to our clients; we work to settle your accounts. We are an accredited member of the BBB (Better Business Bureau) with a favorable rating and are compliant with the new 2010 FTC (Federal Trade Commission) rules.
We would like to offer you some information about the Debt Settlement Process such as the pros' and the cons'. Some of this information may be brand new, and some may confirm what you already know. Our goal is to give you the basic facts to help you make an informed decision. Please fill out an application to request an appointment to speak with one of our Debt Analysts; to enroll in our program or to get answers on debt settlement and our services.
Your debt may have you overwhelmed and may seem to be the biggest mistake of your life. Things may be still worse if you have started receiving threatening collection calls or cannot sleep at night. There are specific federal and state laws and the collection agencies have to abide by them. As an attorney, I am a good choice in such situations, because I can go into extensive detail and discuss the legal ramifications.
The Fair Debt Collection Practices Act (FDCPA) is a safeguard for you against the practices of creditors, banks, and collection agencies. In other words, the act is here to protect consumers – you !! Unfortunately, it is complicated and has a number of provisions that are very difficult to understand and enforce. We are on your side. We are here to educate you on the laws that are in place and to allow you to utilize them in order to achieve the most favorable result for your individual situation. Banks have attorneys helping them collect money; you should have an attorney by your side with your rights being protected at all times as well.
We will speak with your creditors and require them to speak to us (your attorney) rather than with you.
Here at The Mathys Law Group, PC in addition to actually settling your debt for a significant savings, our goal for every client we enroll into our “Legal Debt Resolution” program is to help protected you from judgments, levies, liens and wage garnishments by dealing with your creditors and settling your debt to the extent that we have funds to do so. When you are enrolled in a debt settlement program with a non-law firm and one of your creditors decides to sue you they do not protect you legally.
When it comes to debt collection agencies, here's what we can protect you against:
- Repeated calls
- Abusive language and threats of legal action
- Contacting your neighbors, relatives, friends, coworkers, and employers
- Deceptive and illegal methods of debt collection
- Misrepresentation of the amount or status of a debt
- Disclosure of your default debts to third parties
If any of the above has happened or is happening to you, please contact us today for a FREE talk.
What Are the Drawbacks?
The potential for having the amount you settle considered taxable income and the damage to your credit are the two main drawbacks to debt settlement. However, only the unpaid balance is taxable, and then only at your normal tax rate.
The forgiven balance is usually considered taxable income by the IRS, although if you meet the IRS' definition of insolvency, at the time of your debt settlement, you may not have any tax obligation for the forgiven debt. Seek advice from your tax adviser on Cancellation of Debt Income, and be sure to ask about IRS Form 982, the form that is used to excuse your requirement to declare the forgiven debt as income. In addition, the fact that you reached a settlement will be noted on your credit report. Even if you have to pay taxes on the settlement, it is far cheaper than having paid back the debt in full. Say, for example, you owe $10,000 and settle the debt for $7,000. You may have to pay taxes on the $3,000 you saved, if you are not eligible to use the Form 982, but that is far less than paying back the full $3,000.
Your credit will also be harmed because, during your debt settlement program, you are not making monthly minimum payments to your creditors. This results in delinquencies appearing on your credit report which lower your credit score. The experience can also be stressful, since you may get collections calls and could even be sued. You have to balance those concerns out against the significant savings.