- Can pay less than the full balance of loan.
- Settlement can take days to months.
- Creditor can bring lawsuits to collect its debt during settlement process.
- Unpredictable outcome.
- Attorney fees – paid by the hour. We cannot estimate time it will take.
- Default will be reported on credit report and lower credit score.
- Will be taxed on amount forgiven.
- Chapter 7 – discharge all debt without payment. Chapter 13 – make partial payment based on disposable income and liquidation analysis.
- Chapter 7 – typically takes 4 months. Chapter 13 – 3-5 years.
- Once in bankruptcy, Automatic Stay prohibits any further collection activities.
- We can be reasonably certain of outcome.
- Attorney fees – usually flat fee.
- Bankruptcy will be reported on credit report up to 10 years, though some credit agencies report completed Chapter 13s for only seven years.
- No tax consequences.
JC Law Group PC is a San Francisco law firm. We work with individuals and small businesses in overwhelming debt. Our services includes: debt settlement, Chapter 7, Chapter 13 and Chapter 11 bankruptcy.
photo by: samantha celera