One method of debt relief is called debt reorganization or debt settlement. The attorneys at Doyaga Law, LLC provide debt settlement assistance for clients in Central Ohio and the surrounding counties.
Deciding whether debt settlement or bankruptcy is the best option for tackling your debt can be a hard decision. Usually, good candidates for debt settlement are those who have access lump sums of cash they can pay creditors, have high income that would result in high repayment plans in a Chapter 13, have assets that are not protected by the bankruptcy exemptions in Ohio, have a few high dollar debts, or have jobs where filing for bankruptcy could cause an issue with licensing.
While it is possible to negotiate monthly payments, creditors are less willing to offer this solution as compared to lump sum settlements. If you require monthly payments, filing a Chapter 13 bankruptcy may be more beneficial because there is no interest or late fees. Additionally, debt settlement will result in the issuance of a 1099 that requires you to pay income taxes on the portion of any debt that creditors forgive. Comparatively, debt that is discharged in a bankruptcy is not subject to income tax.
Determine if debt settlement is right for you. Call Doyaga Law, LLC today at 614-802-9190 and ask about a free consultation!