“[Attorney Burton] got creditors to back off and was able to devise a plan that not only satisfied creditors but also enabled us to keep our house and other assets.”
We Can Answer Your Legal Questions – Call (818) 514-1355 For A Free Initial Consultation
We Can Answer Your Legal Questions – Call (818) 514-1355 For A Free Initial Consultation
Drowning in debt in Los Angeles County? Contact attorney Stephen Burton for guidance on debt settlement, debt resolution, or bankruptcy relief.
Debts have a way of creeping up on us, little by little, until we are drowning in them and cannot see a way out, like the haze that builds up over LA County in the summer. Like the proverbial frog in slowly boiling water, we keep hoping and assuming we will be able to get out from under them later. Until later comes along with wage garnishments, liens, and foreclosure on the horizon.
If you are one of the thousands, if not millions, of Los Angeles County residents struggling with debt, it can easily feel like a helpless situation. Or one that, if you just ignore it, might go away. Neither is true. You can do something about your debts, even overwhelming ones. But the longer you wait, the more difficult and expensive it may become.
This is done through a process called debt resolution, which uses tools like debt settlement to reduce the amount you owe or reorganize it into a repayment plan you can actually handle. It is a complicated process, but it is one that can allow you to get out from under your debt, finally. Luckily, you do not have to blunder blindly into the world of debt settlement alone, not when LA County lawyers like Stephen Burton can help.
Call For A Free Initial Consultation (818) 514-1355
Debt resolution is a process too few folks in Los Angeles County know about. It is not taught in school, and most creditors will not put the options on the table if you do not ask them deliberately. The principle is fairly simple however.
Creditors, the people or institutions you owe money to, want to be paid back. But they would rather you pay some of the money back than none. As a result, with the help of a lawyer, you can often negotiate or consolidate to reach an agreement that involves paying back less money overall (debt settlement), or over a longer amount of time (repayment plans), or both!
It is not a question of asking nicely however, as creditors do not tent to give up money they are owed easily. You need the right arguments, evidence, legal guidance, and offers to sway them, but successfully doing so is often well worth the effort. Here are three tips to keep in mind when doing so, to help you better understand the debt resolution process and its advantages (and disadvantages).
Companies in Los Angeles County and throughout the country need to tell their shareholders how they are doing regularly, and end-of-year reports are particularly important. As a result, companies have a big incentive to get what revenue they can before those reports are due, which can make them more willing to accept a favorable settlement just before the end of the year.
Timing also matters when it comes to repayment plans. If you agree to a debt resolution plan but fail to make the agreed-on payments on time, creditors may reopen claims against you. This can undermine your efforts and result in financial and legal consequences.
Even if you do manage to negotiate a debt resolution deal that results in you paying less, overall, than what you used to owe, you might end up paying more than you agreed to. This is because the difference between what you owed and what you have to pay, the forgiven debt, is often considered a gift, and a form of taxable income at that.
This means that depending on your income tax bracket, you could end up paying 20% or more of that income in tax. You need to make sure you consider that when planning with your tax resolution lawyer, or you run the risk of undermining your efforts.
In most repayment plans or debt settlement agreements, the bulk of your debt still has to be paid. Whether that is up front with a lump sum or over time with a payment plan, you still have to find the money or sacrifice a good portion of your income.
You are likely to pay less or get a longer time over which you have to pay, but one way or another, the creditors are still getting those debts or will come after your income or property to get it. This is different from bankruptcy, which, once the Chapter 7, 11, or 13 process is completed, sees the remaining debts discharged.
One of the main reasons creditors are willing to accept debt resolution offers in the first place is that they know that the alternative is bankruptcy. Bankruptcy is more drastic, but in some ways more effective.
Chapter 7 bankruptcy can allow most unsecured debts (like credit card or medical debt) to be discharged completely but at the cost of non-essential assets (such as a second car or rental property). Chapter 13 bankruptcy works more like debt consolidation and resolution, as it comes with a payment plan, but at the end of it, excess eligible debts are also discharged.
This means that under a bankruptcy, your creditors are likely to get a whole lot less, which is why they will be willing to accept debt resolution in the first place. And if they refuse, bankruptcy is always an option you can pursue with the help of a Los Angeles County lawyer like Stephen Burton.
Call For A Free Initial Consultation (818) 514-1355
Burton Law Offices | Highly skilled LA County debt resolution lawyer ready to help you reach a settlement and relief.
Don’t let the haze of debt overshadow your life or drag you down. Hundreds of Los Angeles businesses and families have been able to put debts of all kinds behind them, and you could be next. With the help of debt resolution lawyer Stephen Burton, you can find a path to financial freedom through debt settlement or even bankruptcy.
Schedule a free consultation to review your situation by calling (818) 514-1355 or reaching out to our team online. With offices in Encino and Sherman Oaks, and the ease of online communication, if you are ready to put your debts behind you, we will help you plan the path to a fresh financial start.
Call For A Free Initial Consultation (818) 514-1355“[Attorney Burton] got creditors to back off and was able to devise a plan that not only satisfied creditors but also enabled us to keep our house and other assets.”
“We were impressed by his knowledge, skill and his reassurance that we could get through this…having someone like Steve Burton there to protect our interests has given us peace of mind.”
