08 Feb Minnesota Loan Workout Options
If you are thinking about settling your debt in Minneapolis or St Paul it is important to go with a local firm that can represent your interests. When you are working towards a debt resolution you want to make sure that you have some money available to settle the debt, creditors will generally give you a better deal if you can make a lump sum payment on the debt. The other important thing to watch out for is if the creditor sues you during the debt negotiation process, if that happens you need to have your attorney respond to the lawsuit to prevent a default judgement from being entered against you. The problem is once a creditor has a judgement they are less likely to negotiate regarding the debt, since they have more leverage.
The other thing to remember is that if you settle debt you will still be on the hook for taxes regarding the amount of debt that was forgiven, so the creditor will send you a 1099 form showing the amount of phantom income you received from the settled debt. This phantom income also has to be considered when you decide to settle debt. We can present our clients with all the debt settlement options available including protection under the bankruptcy code. If you need help dealing with debt, contact us today at 952-294-0144.