I DON’T KNOW WHAT TO DO SINCE I AM CURRENT WITH ALL MY CREDIT CARD PAYMENTS BUT I WILL BE PAYING ON THESE DEBTS FOR ANOTHER 50 YEARS
A common scenario that Mr. Taieb sees is clients who are doing their best to keep up with payments on all their debts, but they are not putting a dent in the principal.
Recently a very kind woman came to see Mr. Taieb who was current on all her payments. However, she was just overwhelmed since with all the payments she was making she was not putting a dent in the principal since the interest rate was 30% on several of the loans and credit cards.
When you are in this situation, there are always options to help you get out of this predicament. In certain situations you may be eligible to totally stop making payments to these creditors when the payments are not putting a dent in principal. If you qualify, you may be able to file a Chapter 7 and just get a fresh start. However, if you don’t qualify for Chapter 7, Mr. Taieb has helped numerous clients substantially reduce their credit card payments and make one payment which they can afford, to a Chapter 13 trustee. After you pay off the plan, which can be 3 to 5 years, then you are totally relieved of your obligation on all your unsecured debt.
It is crazy for you to sacrifice money for food or prescriptions to satisfy your credit card obligations. Also, many prospective clients of Mr. Taieb’s make the mistake of trying to “settle” cases with individual creditors which can really hurt you since if you owe $10,000 and they offer to settle for $5,000, the IRS will then send you a 1099 for $5,000 which is taxable income.
The best advice is to talk to Steven N. Taieb to learn about how bankruptcy can get you out of this dead end spiral.
Please don’t get scammed by all those commercials about debt settlement since they don’t tell you about the tax implications and how they deal with a debt when a lawsuit comes into play.
Steven N. Taieb, Esq. is here to help you and is a South Jersey Bankruptcy Attorney who has helped over 7000 people with their financial problems for the past 32 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.
We are more than happy to discuss all your options and to see if bankruptcy is the best option for you.