By Atty. Crispin Lozano
Question: What is debt settlement?
Answer: Debt settlement or debt consolidation is a process to negotiate to lower your debt with the creditors. You can do this yourself or hire an agency. Credit card companies will not allow debt settlement if you are current in your payments. You need to be at least three to six months late to start debt settlement. Even if you hired a debt settlement company the creditors can still file a lawsuit against you while they are negotiating your account. Not all credit card companies agree to debt settlement. Some companies want immediate cash payment before agreeing to lower the debt. Any debt forgiven must be reported to the IRS as income.
Question: How long is the process of debt settlement?
Answer: Debt settlement takes about 24 to 60 months to complete and there are no guarantee of success. Due to long period of payment plan many are dropping out of the plan. They cannot afford to pay any longer and the promised saving has no guarantee of success in the end.
Question: What are the fees of debt settlement?
Answer: Debt settlement companies’ charges vary. Some charge a flat fee of $5000 or more. Others charge about 15% to 18% of the total debt. On the other hand some charge about 25% of the savings. In the final analysis, sometimes it becomes more expensive than paying the creditors directly because of the fees paid to the debt settlement companies plus the monthly deposit to escrow to cover any settlement.
Question: Can you file bankruptcy while in the process of debt settlement?
Answer: If you are in debt settlement you can still file bankruptcy. Bankruptcy can cancel any contract you made on debt settlement without any problem. Filing bankruptcy could take between three to six months to process. Once the case is filed, no creditors will make a collection call or file a case in court because you are protected by the automatic stay of the court.
Question: What are the advantages of filing bankruptcy than entering into debt settlement?
Answer: Attorney’s fees are cheaper than fees for debt settlement. If you file bankruptcy, there will be no more lawsuits on your unsecured debts, no more garnishment, no long period of negotiation and no reporting of income to the IRS. After bankruptcy you can start fresh and begin building your credit. In debt settlement, you cannot build your credit until all debts are settled which may take years.
2. The death of U.S. citizen parent will not be a hindrance to apply for a waiver of misrepresentation.
3. On January 5, 2010, we received an approval in Immigration Court of an adjustment of status based on good faith marriage despite an age difference of 18 years.
4. Petitioner’s death is not a problem if the beneficiary is in the U.S. when the petitioner died and at the time of adjustment of status.
5. Abused spouse of U.S. citizen or permanent residents can self petition even if there is a problem with the entry documents such as C or D visa or entry without inspection or assumed name.
6. Individual Tax Identification Number (ITIN) can be used for filing tax returns and is required before bank accounts can be opened.
2. Bankruptcy will stop foreclosure actions. If your trustee sale date is 10 days before, you can still file for bankruptcy.
3. If your salary is being garnished, you have a court case about debts or you are being harassed by creditors, bankruptcy can stop garnishment, court cases, harassing creditors and eliminate the debt.
4. Bankruptcy is cheaper, faster and safer than debt settlement which has no guaranteed success.
5. Preserve your health, eliminate stress and live a happy life by eliminating your debts which is the root of all problems.
Crispin Caday Lozano is an active member of the State Bar of California and he specializes in immigration and bankruptcy law. He earned his Juris Doctor at Western State University College of Law in Fullerton, California. He is also a Certified Public Accountant and a Bachelor of Business Administration Cum Laude graduate. He has four offices which are located in Hayward, San Jose, Fresno and Bellflower, California. You can contact him at telephone number 1-877-456-9266.
Question: What is debt settlement?
Answer: Debt settlement or debt consolidation is a process to negotiate to lower your debt with the creditors. You can do this yourself or hire an agency. Credit card companies will not allow debt settlement if you are current in your payments. You need to be at least three to six months late to start debt settlement. Even if you hired a debt settlement company the creditors can still file a lawsuit against you while they are negotiating your account. Not all credit card companies agree to debt settlement. Some companies want immediate cash payment before agreeing to lower the debt. Any debt forgiven must be reported to the IRS as income.
Question: How long is the process of debt settlement?
Answer: Debt settlement takes about 24 to 60 months to complete and there are no guarantee of success. Due to long period of payment plan many are dropping out of the plan. They cannot afford to pay any longer and the promised saving has no guarantee of success in the end.
Question: What are the fees of debt settlement?
Answer: Debt settlement companies’ charges vary. Some charge a flat fee of $5000 or more. Others charge about 15% to 18% of the total debt. On the other hand some charge about 25% of the savings. In the final analysis, sometimes it becomes more expensive than paying the creditors directly because of the fees paid to the debt settlement companies plus the monthly deposit to escrow to cover any settlement.
Question: Can you file bankruptcy while in the process of debt settlement?
Answer: If you are in debt settlement you can still file bankruptcy. Bankruptcy can cancel any contract you made on debt settlement without any problem. Filing bankruptcy could take between three to six months to process. Once the case is filed, no creditors will make a collection call or file a case in court because you are protected by the automatic stay of the court.
Question: What are the advantages of filing bankruptcy than entering into debt settlement?
Answer: Attorney’s fees are cheaper than fees for debt settlement. If you file bankruptcy, there will be no more lawsuits on your unsecured debts, no more garnishment, no long period of negotiation and no reporting of income to the IRS. After bankruptcy you can start fresh and begin building your credit. In debt settlement, you cannot build your credit until all debts are settled which may take years.
Note: This is not a legal advice.
Immigration News
1. On December 23, 2010, we received an approval from the Immigration Court for a waiver of misrepresentation for an alien who entered as single but actually married.Immigration News
2. The death of U.S. citizen parent will not be a hindrance to apply for a waiver of misrepresentation.
3. On January 5, 2010, we received an approval in Immigration Court of an adjustment of status based on good faith marriage despite an age difference of 18 years.
4. Petitioner’s death is not a problem if the beneficiary is in the U.S. when the petitioner died and at the time of adjustment of status.
5. Abused spouse of U.S. citizen or permanent residents can self petition even if there is a problem with the entry documents such as C or D visa or entry without inspection or assumed name.
6. Individual Tax Identification Number (ITIN) can be used for filing tax returns and is required before bank accounts can be opened.
Bankruptcy News
1. Chapter 7 will eliminate all unsecured debts. If you are near retirement age, you must eliminate most of your debts.2. Bankruptcy will stop foreclosure actions. If your trustee sale date is 10 days before, you can still file for bankruptcy.
3. If your salary is being garnished, you have a court case about debts or you are being harassed by creditors, bankruptcy can stop garnishment, court cases, harassing creditors and eliminate the debt.
4. Bankruptcy is cheaper, faster and safer than debt settlement which has no guaranteed success.
5. Preserve your health, eliminate stress and live a happy life by eliminating your debts which is the root of all problems.
Crispin Caday Lozano is an active member of the State Bar of California and he specializes in immigration and bankruptcy law. He earned his Juris Doctor at Western State University College of Law in Fullerton, California. He is also a Certified Public Accountant and a Bachelor of Business Administration Cum Laude graduate. He has four offices which are located in Hayward, San Jose, Fresno and Bellflower, California. You can contact him at telephone number 1-877-456-9266.
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