Some of our clients prefer to avoid filing bankruptcy entirely because of the damage it may cause to their credit, or simply because they only have a few debts which they believe they can deal with without necessarily filing a bankruptcy.  DeGuzman Law PLLC provides our clients with two non-bankruptcy alternatives to satisfy  these consumer debts:

• Debt Settlement:  This also known as a debt reduction, debt negotiation or debt resolution. Settlements are negotiated with the debtor’s unsecured creditors.  Commonly, creditors agree to forgive a large part of the debt, sometimes as much as eighty (80) percent of the balance, though results can vary. When settlements are finalized, the terms are put in writing. It is common that the debtor makes one lump-sum payment in exchange for the creditor agreeing that the debt is now cancelled and the matter closed. Some settlements are paid out over a number of months. In either case, as long as the debtor does what is agreed in the negotiation, no outstanding debt will appear on the former debtor’s credit report.   

• Payment Plans:  Sometimes, if the creditor is not willing to accept a lump-sum payment described able, we are able to successfully negotiate payment plans.  In some instances, the creditor agrees to lower the interest rate or eliminating interest entirely.

*** It is important to note that the IRS may attribute any portion of the debt which is forgiven as income to you, and you may be taxed by the IRS accordingly

If any of the scenarios illustrated above apply to you, call us now at (757) 333-7336 to discuss your options.  Or fill out the short intake form below for a FREE consultation.