I’m In Debt- What are My Options?

If you are struggling with debt- you have plenty of options to select from. If your debt is small and you can manage to pay it off- then rearrange your finances and spending habits and pay off the debt. However, most individuals cannot afford to pay off debt due to personal hardships. In this case- here are your available options:

1. Meet with an experienced bankruptcy attorney and discuss debt consolidation, debt settlement, Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Credit management, loan modification, etc…

2. Understand all the pros and cons associated with every possible option BEFORE deciding which route to go.

3. Do not give up hope- debt management and credit reconciliation is a lengthy ( and sometimes expensive) process. But- you will end up paying less and not have to worry constantly if you follow these steps.

4. Lastly- when you finally pay your debts or get the debts discharged- it is time to let go of everything you knew about money before. Redefine your values and priorities. Create a spending plan and STICK to it! Only spend what you have until your credit is on par. Always pay bills on time. Learn of other ways you can make money besides a 9-5 traditional job. Learn about investing in the market, start saving for your retirement (401K or similar), have an emergency fund in case you lose your job, consider bonds, etc.

No matter what you decide- the most important fact to remember is that money does not define you. Having less money does not mean you are worthless or stupid. Money is just a business transaction and some people are not as good at it as others. Remain a responsible adult and continue to make good financial choices (based on needs instead of wants) and soon you won’t have any debt related worries.

Fridlin & Associates, P.C.

1517 Voorhies Ave, Suite 4

Brooklyn, NY 11235

(718) 372-4400

debt options chapter 7 chapter 13 bankruptcy settlement modification

Advertisements

The End of the World Bankruptcy

In 2010, one of the most famous reality television couples in Hollywood, Heidi Montag and Spencer Pratt, filed for bankruptcy. An example of extreme spending, the pair purposefully and exuberantly spent almost all of the money they earned. Did they want to be poor? Were they wrongly investing the more-than-ten-million-dollars into the wrong people and companies? What was the reason for this initiative? It turns out the answer is surprisingly simple: Montag and Pratt truly believed that the world was coming to an end in December 2012, and decided to seize the day and live life to its fullest with extravagant spending. Some examples of this include expensive plastic surgery, purchasing cars for friends and tipping for services in hundred dollar bills.

Bankruptcy is not something that commonly happens to multimillionaire celebrities who strive to dispose of their wealth. Rather, it is a situation that erupts from years of hardships and difficult decisions and is dealt with daily by hardworking people with unfortunate circumstances. A bankruptcy lawyer understands these conditions and can help anyone struggling. Heidi Montag and Spencer Pratt have looked back on their actions and acknowledged that they made mistakes as well as advising others not to believe apocalypses are imminent. Avoid these errors, and call Elaine Fridlin, Esq. of  Fridlin & Associates at 718-372-2286 or come in today for a free free consultation.

Fridlin & Associates, P.C.

1517 Voorhies Avenue

Suite 4

Brooklyn, New York.

Heidi Montag Spencer Pratt bankruptcy

What is Debt Settlement?

Debt Settlement occurs when a creditor agrees to allow a borrower pay a less amount than initially agreed upon. However, this action damages your credit score and makes you a less favorable future loan candidate. If you are thinking about settling a debt, do not wait until you are six months delinquent as this makes you appear completely not trustworthy. Just because a creditor marks your account as “charged- off”, it does not mean you no longer owe the creditor. This is very different from written off, where the debt is no longer important.

The only way a settlement can occur is if you, the debtor (with the help of an attorney) can prove to the creditors that you cannot possibly pay off the debt without a settlement. The creditor will acquire information regarding your income, expenses, checking accounts, savings accounts, employment, credit history, etc. Then, once the creditor determines that you in fact need a settlement otherwise they will never see their money, you will be granted a settlement. You must be aware of the fact that any time a settlement for which debt forgiveness is greater than $600, the money owed becomes taxable. Thus, do not expect a tax return if you still owe someone under a settlement.

If possible- try to manage your debt before settling, as a well thought out debt management plan will be more beneficial for you in the long run. Not only will you be able to retain your high credit score, but you will also learn a new way of managing your finances.

Fridlin & Associates, P.C.

1517 Voorhies Ave, Suite 4

Brooklyn, NY 11235

(718) 372-4400

loan forgiveness debt reduction