What amount can you settle my debt for?

On May 16, 2011, in Debt settlement, by Robbie L. Vaughn, Esq.

Clients often ask: “What amount can you settle my debt for?”

Our answer is almost always: “It depends on several factors.”

These factors include:

  • the creditor
  • the type of debt
  • the age of the debt
  • how many times the debt has been transferred
  • the hardship claimed
  • how the settlement will be paid out

Secured debts (i.e. mortgages, car loans) are much harder to settle than unsecured debts (i.e. credit cards, medical bills). Some debts can be settled for as little as 10%. However, there are creditors that insist on having a much higher percentage of the debt paid back. The creditor starts high, we start low. We never know exactly where the negotiations will end. Creditors have their target settlement amount, and we have ours.

So, no one can guarantee you that they will settle your debts for a sum certain. Be wary of any company that guarantees they will save you a bunch of money. We have numerous clients who have paid at least double our fee to a debt settlement company before coming to us. Many of these companies failed to deliver any results at all, or produced dismal results at best. What’s even more shocking is that none of the individuals understood the agreements they signed. They had no idea where their money was going!

If you choose to hire someone to settle your debts, please choose wisely!

Vaughn & Weber, PLLC  proudly negotiates and settles debts for residents of Long Island, Nassau county, Suffolk county, New York City, Queens, Brooklyn, Bronx, Staten Island, and Manhattan.

Call (516) 858-2620 to arrange a FREE  consultation with a Debt Settlement attorney!

Filing Bankruptcy To Save Your Home From Foreclosure

On April 19, 2010, in Bankruptcy, Foreclosure, by Robbie L. Vaughn, Esq.

Filing Bankruptcy to Save Your Home

Filing Bankruptcy to Save Your Home:  CHAPTER 7 Bankruptcy

Will filing a chapter 7 bankruptcy save my home from foreclosure?

Probably not.

If you are facing foreclosure you have likely missed a few mortgage payments. Chapter 7 does not allow you to make up your missed payments over time.

However, the “automatic stay” may delay the foreclosure long enough for a homeowner to complete a sale or loan modification.

Automatic stay – An injunction that goes into effect automatically, with some exceptions, when a debtor files for bankruptcy. It, in most cases, automatically stops most lawsuits, foreclosures, garnishments, and collection activities against the debtor.

Generally, Chapter 7 bankruptcy is a better option for homeowners who are current on their mortgage, or at least not in foreclosure, but may be struggling due to other “dischargeable debt”.

Dischargeable debt- Debt that can be eliminated by filing bankruptcy (credit card debt, medical bills, etc.).

Filing Bankruptcy to Save Your Home:  CHAPTER 13 Bankruptcy

Will filing a chapter 13 bankruptcy save my home from foreclosure?

Probably.

Chapter 13 Bankruptcy DOES allow you to make up your missed mortgage payments over time (3-5 years). This is done via a monthly payment plan. A portion of your arrearage is paid along with your current monthly mortgage payment as part of your chapter 13 plan.

Also, like a chapter 7, the “automatic stay” may delay the foreclosure long enough for a homeowner to complete a sale or loan modification.

Additionally, you may also be able to “strip-off” a totally unsecured 2nd/3rd mortgage on your primary residence. This would allow the 2nd/3rd mortgage to be treated as any other unsecured creditor. Thus, it would be dischargeable upon the completion of the Chapter 13 plan.

As always, The Law Firm of Vaughn, Weber & Prakope, PLLC is here for you should you need us.  Contact us at (516) 858-2620 to speak with a bankruptcy attorney.

Please visit our Bankruptcy category to learn more about filing chapter 7 or 13 bankruptcy.

Please visit our Foreclosure category to learn more about foreclosure issues.

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. This website is Attorney Advertising. It does not form an attorney-client relationship. We are a debt relief agency and a law firm that helps people file for bankruptcy relief under the U.S. Bankruptcy Code – Title 11. Prior results do not guarantee a similar outcome. Proudly assisting residents of Long Island, Nassau county, Suffolk county, New York City, Queens, Brooklyn, Bronx, Staten Island, Manhattan