Direct Negotiation with Your Creditors
Negotiating directly with your creditors is something that you can do yourself. If you need help, our Birmingham and Tuscaloosa bankruptcy lawyers are more than happy to work with you in the negotiations. In general, you can attempt to get your creditors to lower your interest rates, reduce the amount you owe, or adjust your payments to a more manageable level. In asking a creditor to lower your interest rate or adjust your payments, the worst thing that can happen is for them to say “No.” This option is like the concept of “nothing ventured, nothing gained.”
Usually a Lump Sum of Cash is Required
Getting your creditors to accept less than the full amount you owe them usually requires you to have a lump sum of cash that you can pay to them immediately. If you have a number of creditors this can present a problem. Either your creditors will not all accept your offer or you will not have enough money to work out a solution with all of your creditors. One of the dangers of direct negotiation is that you find yourself unable to resolve all of your problems. Piecemeal solutions aren’t the answer; they are just a Band-Aid on the bigger problem. You need to find a comprehensive solution to your debt problems.
Be Careful Not to Create Tax Liability
Another problem that arises with debt negotiations is the potential creation of tax liability. If your creditors agree to take less than you owe them, the difference between your balance and the amount you pay is treated as income by the IRS. In other words, you got rid of some of your debt only to create taxes payable to the IRS.
Free Consulations with our Birmingham and Tuscaloosa Bankruptcy Lawyers
Our Birmingham and Tuscaloosa bankruptcy lawyers can explain all of your options to you. You will not be pressured to hire Dionne & Dionne, or file a bankruptcy case. Our Birmingham and Tuscaloosa bankruptcy lawyers will explain your options to you for free.
How to Get Help and Get Out of Debt
When you are ready to get out from under your crushing debt, give Melinda Dionne a call at 205-349-5911 (Tuscaloosa) or 205-453-1012 (Birmingham) or click here. When you call, tell our assistant, Ginny, that you are a website reader and she will set you up with a free, no obligation, consultation to see how Melinda can help you start living again.
Tuscaloosa Office: 9217 Old Greensboro Road, Tuscaloosa, Alabama 35405 (205) 349-5911; Birmingham Office: 4 Office Park Circle, Suite 214, Birmingham, Alabama 35223 (205) 453-1012.
The law firm of Melinda Murphy Dionne represents clients in Central and West Alabama including Birmingham, Tuscaloosa, Centerville, Fayette, Jasper, Moundville, Tuscaloosa County, Bibb County, Blount County, Fayette County, Greene County, Hale County, Jefferson County, Lamar County, Perry County, Pickens County, Shelby County, Sumter County and Walker County.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers.
