If you are in a situation where you do not feel that bankruptcy is the right choice for you we may be able to help you with a loan workout or debt settlement.
This course of action is not the right choice for every person, but it can be an option in certain cases.
The best way for us to determine if it is right for your situation is through a phone call or in person meeting, to determine what best suits your needs.
Minnesota Loan Workout & Debt Settlement Attorneys
When Debt Settlement May Be Right For You
The situation where debt settlement may be more beneficial than bankruptcy is when you have substantial assets than could be lost if you file for bankruptcy protection.
We see clients on occasion where their assets exceed their debts, but it may be the only savings they have, or need the funds for retirement, and they are looking for a discount on the amount owed.
In many cases clients have already paid back the creditor the original amount charged, and they are just working on the interest, so if the creditor offers a discount, they are just losing the money from fees and interest.
Also if you stop paying on credit cards the balance can increase substantially from the charges on the card until it is charged off. Charging off does not mean you do not owe the debt, it just means they are writing it off for tax purposes.
In some cases after the debt is charged off they sell the debt to a debt buyer. The debt buyer in most cases will charge back fees and interest on the debt, creating a much larger bill than you started with.
If they send it to an attorney it gets even worse, since you have to pay the creditors filing fees, costs, and attorney fees as part of the credit card agreement.
This is why they can offer you a discount on the full balance, because most of the balance is fees and interest.
The other problem experienced by people going through debt settlement is they receive a 1099 for the phantom debt settlement income. This means you have to pay tax on the settled debt and count it as income on your tax return.
This can come as an unwelcome surprise to people who have settled their debts.
Getting Your Debt Issues Resolved
Even with the above issues debt settlement or a loan workout can be the right choice for some clients. If it is the right choice is a complex decision and will require expert advice.
We offer our clients all of the alternatives when looking at ways to solve their debt problems. In some cases, bankruptcy will be the best choice. In other cases, debt settlement will provide the needed relief.
It is always best to know what options are available to you, before you make a decision that can affect your financial future.
Hiring competent Minnesota loan workout attorneys is a good step for a solid financial future. Debt settlement is fraught with companies and individuals who don’t know the business and don’t have the power to force a good settlement.
Even worse some debt settlement programs don’t have any incentive to settle the debt.
Whether you are an individual who can’t afford to pay the debt under the current terms with the bank or credit card company, or whether you are a small business owner who needs more time to pay an invoice, we can help.
The attorneys at Bolinske Law have worked both sides of the aisle and understand the perspective of the creditor as well as the perspective of a debtor.
Our attorneys have represented many of the Fortune 500 creditors so we know their settlement procedures and guidelines.
To get started, contact Michael Bolinske at (952) 294-0144 today to discuss how we can get you out of debt.