Listen in as Mike explains "Debt Options"

You are in credit card debt. What do you do?

First, you need to know ALL options to eliminate your debt. Bankruptcy lawyers will tell you to file bankruptcy. Debt settlement companies will tell you to avoid bankruptcy. Credit counselors will tell you to consolidate your credit card debt.

It gets confusing. What do you do? Who do you hire? Who can you trust?
The truth is this web site can’t tell you what to do or who to hire, but we can give you ALL options and ACCURATE information that gives you clarity, and maybe even peace of mind. We can show you that if you hire our law firm, you’ve made a good choice because we have a proven track record of helping people with credit card debt. We have an “A+” Rating

Let's talk options and the "pros" and "cons" of each one….

Credit Counseling: Every person in debt, no matter where they live in the United States, can seek the help of a Not for Profit 501(c)(3). If you call our firm, we can explain this option more fully and, if you choose, we can refer you to a legitimate not for profit credit counselor in your area that can provide you with a consultation. It’s not for everyone, but it works for many people. It is based on consolidating the debt into one payment and paying a reduced interest rate over a period of time.

• The Pros – You avoid bankruptcy (if you complete the plan in full). You get your debt organized into one payment. You pay a reduced interest rate. You don’t have late fees and over the limit fees. Typically, the phone calls stop if you enter the program early enough. You don’t have a bankruptcy on your credit report.

• The Cons – You pay back the debt in full over 2 to 5 years. You pay interest on the debt, but at a reduced rate. It typically damages your credit score. Not every creditor has to agree with reducing your interest or with allowing you to pay according to the proposed plan of the credit counselor.

ATTENTION: If you live in WISCONSIN you can also pay NO interest over three years on your credit card debt and medical debt. This is a Wisconsin LAW. It is NOT bankruptcy. Our law firm helps many Wisconsin residents through this program.

DEBT FORGIVENESS: Our law firm compromises credit card debt and medical debt for a fraction of what is owed. This is a private agreement between you and the credit card company that does not involve filing bankruptcy. Example. Client owes $5000 and we negotiate a $1900 settlement. Results can vary. And there is no guarantee of specific results, but we do guarantee we will settle credit card debt for a fraction of what is owed or no fee is paid.

• The Pros – You avoid bankruptcy (if each account is resolved). You pay less than what you owe. It’s legal. You don’t have late fees and over the limit fees once the debt is forgiven. Typically, the phone calls stop (but occasionally an original creditor may call you). You don’t have a bankruptcy on your credit report. With our law firm, you pay no legal fees unless we are successful in getting an account compromised for less than you owe. You may be able to sue your creditors and collection agencies and debt buyers without paying any attorney fees out of pocket (ask us about record of taking on abusive parties)

• The Cons – You may not be able to pay the creditor because you need either a lump sum or a lump sum paid over 90 days to 180 days. Chapter 7 can be a better option if you can qualify for Chapter 7. You can get sued (this almost never happens with our firm). There can be tax liability on the forgiven debt (talk with our law firm about why most of our clients do not pay tax on the forgiven debt). It can lower your FICO score if your score is already above 700 (if you are “maxed out” then in some cases it will not affect your score or not affect it as much).

BANKRUPTCY: Chapter 7 or Chapter 13.

Chapter 7: No payments back to the credit card companies. You must qualify for 7 based on income and assets. In most cases you can save your home and other personal property.

• The Pros – You can wipe out all of your credit card debt without paying back a dime and get a fresh start. It’s predictable as you have a court order behind you(If you fully disclose all assets to your attorney and the attorney does his or her job.) You can rebuild credit after bankruptcy. It only lasts 90 to 120 days from the date of filing – it’s quick.

• The Cons – You may not qualify. You have to pass a “Means Test”. You have to disclose all assets. Your assets must be “exempt.” You have to appear in a “Meeting of Creditors.” You will have a bankruptcy on your credit report for 10 years from the date of filing. It can dramatically lower your credit score.

Chapter 13: Payments are made back to the credit card companies over a period of 5 years. How much you pay back depends on how much you earn and what you own. Chapter 13 also works well for people who are behind in mortgage payments. You need lawyers who are experienced in 13 to make it work.

• The Pros – You can use 13 to save your home or deal with student loans, tax liability and medical bills. You may only pay a small percentage of what you owe the credit card companies (this is not typical and depends on the "plan" payment). You may be able to sue creditors in 13 by filing an "adversarial" claim and not pay any attorney fees if the claim is successful. It's predictable because you have a court order behind you.

• The Cons – If you earn enough income – let's say you're an individual earning $50,000 a year or married couple earning $100,000 a year – you may have to pay all or most of your credit card debt in full. You are in the 13 plan for 5 years typically. If your income goes up then you may have to pay more during the 13 plan. You have to provide a Trustee with your tax returns every year you are n the 13 plan. You will have a bankruptcy on your credit report for 10 years from the date of filing.

BOTTOM LINE: Don't' be confused. Don't panic. Take it step by step. You'll be ok.

If you want to learn how your unique situation could be helped, and you want a more detailed explanation of each option and whether it would be right for you, then call us toll free at 1 800 618 0453.

Listen in as Mike explains "Debt Options"

You are in credit card debt. What do you do?

Let's talk options and the "pros" and "cons" of each one….

You'll feel better after speaking with us!