New York Debt Settlement Lawyers

Achieve Debt Freedom in New Jersey & Pennsylvania

Debt in the USA is a major challenge that continues to affect more and more households. The total amount of debt held by US consumers is staggering, with mortgage debt accounting for over $10 trillion, auto loans at $1.3 trillion, student loan debt estimated at $1.6 trillion and credit card debt standing at a towering $1 trillion. The amount of debt held by US households continues to rise, leaving many individuals and families overwhelmed with bills and struggling to stay afloat financially. 

Debt is a serious and pervasive problem for many Americans. According to a recent study, the average American has $96,371 of debt, which is up nearly 4% from the previous year.

There are many reasons why Americans have so much debt, but some of the most common are:

• Mortgages
• Student loans
• Illness
• Loss of employment
• Divorce
• Growing families
• Unreasonable fees
• Exorbitant interest rates

No matter the reason for your monetary woes, it is imperative to improve your finances as quickly as possible, for as little as possible. That is why our debt settlement lawyers in New York fight diligently to help our clients put an end to exorbitant debt as fast as possible.

Contact Graham & Borgese by calling (888) 801-7765 today to learn how debt settlement can ease your financial situation.

Understanding Debt Settlement: What You Need to Know

Debt settlement is a financial arrangement in which a debtor negotiates with their creditors to settle a debt for less than the full amount owed. It is one method of debt relief for individuals who are struggling with significant debt and are unable to make their regular payments. Debt settlement can also be known as debt negotiation or debt resolution.

Here's how debt settlement works:

• Financial Hardship: The borrower is unable to make full payments on their debt.
• Negotiation: Either the borrower or a debt settlement company negotiates with the creditor to reduce the total amount owed.
• Lump-Sum Payment or Payment Plan: Once an agreement is reached, the borrower typically makes a lump-sum payment or structured payments to settle the debt.
• Debt Resolved: The creditor considers the debt settled once the agreed amount is paid.

Frequently Asked Questions (FAQs) About Debt Settlement

How does debt settlement affect my credit score?

Debt settlement can negatively impact your credit score because it usually involves stopping payments on your accounts while negotiations take place. Missed payments and settled debts are reported to credit bureaus, which can lower your credit score. However, if you were already behind on payments, the impact may not be as severe. Over time, as you rebuild your credit with responsible financial habits, your score can recover.

How long does the debt settlement process take?

The timeline for debt settlement varies depending on factors such as the amount of debt, the creditor’s willingness to negotiate, and whether you work with a debt settlement company. On average, the process can take anywhere from a few months to several years. Most settlements happen within 24 to 48 months, but some creditors may agree to a lump-sum settlement more quickly.

Do I have to work with a debt settlement company?

No, you can negotiate directly with creditors without hiring a debt settlement company. However, some people prefer using professional negotiators who have experience dealing with creditors. If you choose a debt settlement company, be sure to research their reputation, fees, and success rate, as some companies charge high fees and may not deliver the promised results.

Will all my creditors agree to settle my debt?

Not all creditors will agree to a debt settlement. Some may refuse to negotiate, while others may only consider settlement after a long period of non-payment. It’s important to have realistic expectations and understand that each creditor has its own policies regarding settlements.

Is debt settlement better than bankruptcy?

Debt settlement can be a better option than bankruptcy if you can afford to make a reduced payment and want to avoid the long-term consequences of bankruptcy. However, bankruptcy may be a better choice if you have no means to repay your debts. Bankruptcy can eliminate most unsecured debts but stays on your credit report for up to 10 years, while settled debts typically remain for 7 years.

Are there tax consequences for settled debt?

Yes, the IRS generally considers forgiven debt as taxable income. If a creditor forgives $600 or more of your debt, they may report it to the IRS using a 1099-C form. However, if you qualify for insolvency (meaning your debts exceed your assets), you might not have to pay taxes on the forgiven amount. It’s best to consult a tax professional for guidance.

What are the risks of debt settlement?

Debt settlement comes with risks, including damage to your credit score, the possibility that creditors won’t agree to negotiate, and high fees if you use a settlement company. Additionally, while you’re trying to settle, creditors may continue collection efforts, including lawsuits. Carefully consider these risks before pursuing debt settlement.

What alternatives to debt settlement should I consider?

Alternatives to debt settlement include debt consolidation, credit counseling, negotiating lower interest rates, and setting up payment plans directly with creditors. Bankruptcy is another option for those in extreme financial distress. Each alternative has different impacts on your credit and finances, so evaluating your situation carefully is crucial.

Avoid the Pitfalls of Debt Settlement Companies

There are countless numbers of “debt settlement” companies across the country that make big, bold, and exciting claims regarding the money they can save you. The problem? The vast majority of these companies actually add to your debt problems by charging vague and exorbitant fees for their services and otherwise failing to negotiate meaningful settlements for your debt. What’s worse? Many of these companies actually tell their clients to stop paying bills even though they are current, because they want to “frighten” creditors into settling debts. This only leads to lawsuits, inflated debt amounts, and more severely damaged credit.

Hiring a debt consolidation company isn’t the answer either. These companies are also rarely able to negotiate meaningful resolutions to your debt problems. Instead of consolidating your debt, we actually get your principal balances reduced and are often able to get interest and penalties waived.

Why Choose Graham & Borgese for Your Debt Settlement Needs

Graham & Borgese is a local debt settlement law firm with offices throughout NY and NJ. Unlike national debt settlement companies, we hold ourselves to a high ethical standard, to ensure that we lawfully and zealously represent the people who have put their trust in us to help them out.

Here are a few reasons to hire us:

• Our experience allows us to negotiate meaningful debt settlements for our clients.
• Our legal fees are simple, direct, and clear to calculate, and there are never any hidden charges.
• We have licensed debt consolidation attorneys on staff who will continue to handle your collection account — even if a lawsuit is filed along the way.
• We won’t leave you stranded or charge you additional fees to achieve your goals.
• Our attorneys always see to it that a settlement is finalized in written, contractual form, and the terms are always reviewed by an attorney to ensure a creditor does not/cannot take advantage of you.
• Our attorneys are well-versed in collection laws. You can rest assured that your rights are not being violated by unscrupulous debt collectors.

Our New York debt settlement lawyers provide direct and personal contact with our clients to keep them in the loop throughout the process. You are not an account member or client ID number. You will speak with the same person through the handling of your file, further establishing the recognition and trust that our law firm prides itself on.

Secure Your Financial Future with Our Debt Settlement Services

Dealing with overwhelming debt can be incredibly stressful and can have long-lasting effects on your financial well-being. At Graham & Borgese, our experienced attorneys for debt settlement are here to help you protect your financial future and find relief from your debt burden.

By choosing debt settlement, you can:

• Reduce your total debt amount
• Negotiate more affordable payment plans
• Stop harassing creditor calls and collection efforts
• Avoid bankruptcy and its negative consequences
• Regain control of your finances

Our skilled attorneys will work closely with you to understand your unique financial situation and develop a personalized debt settlement plan that fits your needs and goals. We will negotiate with your creditors on your behalf to reach a settlement that is fair and manageable for you.

Don't let debt continue to hold you back. Take the first step towards financial freedom by contacting Graham & Borgese today.

Our debt settlement attorneys in New York can be reached online or via phone at (888) 801-7765.