Debt Settlement Lawyer Anchorage AK

This page provides useful content and local businesses that can help with your search for Debt Settlement Lawyer. You will find helpful, informative articles about Debt Settlement Lawyer, including "Debt Management Options". You will also find local businesses that provide the products or services that you are looking for. Please scroll down to find the local resources in Anchorage, AK that will answer all of your questions about Debt Settlement Lawyer.

Osi Collection Services
(907) 770-3400
360 W Benson Blvd
Anchorage, AK
Osi Alaska Financial Services
(907) 770-3300
4341 B St
Anchorage, AK
Mattson Investigations LLC
(907) 258-1555
741 Sesame St
Anchorage, AK
Consumer Credit Counseling
(907) 279-6501
208 E 4th Ave
Anchorage, AK
Doctors Collection Service
(907) 277-3037
605 Barrow St
Anchorage, AK
We The People Inc
(907) 276-3006
545 E Northern Lights Blvd
Anchorage, AK
Transworld Systems Inc
(907) 868-4970
341 W Tudor Rd
Anchorage, AK
Personal Collections of Alaska Inc
(907) 348-0861
907 E Dowling RD
Anchorage, AK
(907) 276-0100
3701 E Tudor RD
Anchorage, AK
Recovery Management
(907) 344-1059
PO Box 110669
Anchorage, AK

Debt Management Options

Debt settlement can be a useful option when a consumer has acquired too much debt that he or she cannot afford to pay in full. With debt settlement, the creditor agrees to settle with the debtor for an amount that’s less than the actual amount owed.

Much like most other debt management options, debt settlement has its advantages and disadvantages. Debt settlement can reduce the total amount that is owed to creditors and it can also reduce interest on your debt. Debt settlement can eliminate any future fees on your debt, it can consolidate all of your payments under one creditor, and it is possible to become debt-free in less than two years. And, unlike a debt consolidation loan, you are not creating new debt by borrowing to get out of debt. 

One of the disadvantages of debt settlement is the negative effect it may have on your credit report. Because you won’t be paying your creditors the usual monthly payments, this will be noted on your credit report. However, to some creditors this notation can also mean that the debtor did take responsibility in paying as much as he or she possibly could, which may help to offset the negatives. In addition, because your credit report will show that the debt is “paid” or “settled” rather than “outstanding,” this may have a positive effect on your credit history.

Another disadvantage to debt settlement is that any cancelled amount exceeding $600 is considered taxable income. If the creditor reports the forgiven amount to the IRS, you will receive a 1099-C form. In some instances, however, the IRS will decide that the debtor is insolvent, meaning that the debtor will not owe any Federal taxes on the amount.

If you decide that debt settlement is the best option for you, there are several ways to accomplish it. You may negotiate your own debt settlement agreement or you can hire a consumer law attorney to assist you. It is highly recommend that you hire an attorney, especially if your debt is substantial. When negotiating a debt settlement agreement on your own it is important to get everything in writing. Debt collectors typically deal with hundreds of cases per day, so mistakes can happen. To protect yourself, make sure you have agreement in hand before making any kind of payment. The agreement should clearly state the following:

  • -Payment due date
  • -How much you have agreed to pay (total amount and each payment amount)
  • -Method of payment (i.e. cashier’s check, electronic bank transfer)
  • -The debt collector will report to the three major credit bureaus that the debt has been settled or (if applicable) “paid in full” 
  • -Any/all conditions of the agreement (consequences of late payments, consequences of breach)
  • -Any concessions that the debt collector has made

It is recommended that you contact a consumer law attorney to review the agreement to ensure that your interests are well protected. You can search for consumer law attorneys in your local area through the American Bar Associatio...

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