Call Now
(916) 780-7005
Click Here
Free Case Analysis
MENU
  • Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
    --Donna
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

Debt Settlement Vs. Chapter 13

Many people often wonder what the benefits of a Chapter 13 bankruptcy are over debt settlement. It does sound very enticing when a debt settlement firm offers to reduce your debt by up to 40 to 50% rather than paying back all or most of your debt in a Chapter 13 bankruptcy. Many of our clients ask why they should bother with bankruptcy when debt negotiation or settlement is such an enticing option.

 

Debt Negotiation – Pros Chapter 13 – Pros
  •  Can reduce the amount of debt you pay back.
  • A negotiator or agency handles most collection attempts and communication for you.
  • Guaranteed to be out of debt within 5 years.
  • May be required to pay back 0-100% of unsecured debt based on income/household circumstances.
  •  Creditors that do not file a proof of claim before the deadline do not get paid. This debt is then discharged which can potentially save debtors thousands.
  •  Automatic stay protection – stops lawsuits, garnishments, foreclosures.
  • All collection attempts stop during the bankruptcy. The trustee makes payments on your behalf.
  • Debt that has been discharged in a Chapter 13 bankruptcy is not taxed as additional income.
Debt Negotiation – Cons Chapter 13 – Cons
  • Savings from debt negotiation is considered income in the eyes of the IRS and Franchise tax board. This can result in an unexpected tax bill.
  • While debts are being negotiated there is still a negative impact to your credit score.
  • Creditors can still sue you while you are in debt negotiation.
  • Debt negotiation and settlement companies take a percentage of your savings as their fee for their services.
  • Chapter 13 stays on your credit report for 7 years.
  • You must obtain authorization from the trustee to incur new debt when considering purchasing a home or vehicle while in bankruptcy.

 

 

For more information, contact your Fairfield bankruptcy attorney at 707-385-0422.

 

 

Categorized in: