Debt Relief

(Debt Settlement/Bankruptcy)

Know Your Rights

Find An Experienced Debt Relief Attorney

We live in a society that depends, on both a national and global scale, on the constant creation of knowingly unsustainable levels of debt to maximize economic activity and sustain economic growth.  This has not always been the case.  In the not so distant past, the practice of lending was not encouraged but discouraged.  Until very recently in our history there were no “bailouts” for banks who gave too many bad loans, banks simply failed, and their depositors lost their money.  Debtors who failed to pay debts were sent to debtor’s prison or more recently were forced into a kind of bankruptcy that created a permanent hardship for the rest of their lives.  In the mid-to-late twentieth century, the attitude of our country’s political and economic elite towards debt changed dramatically.  Many, many laws have been enacted to ease the burden on both creditors and debtors in the event a loan was not repaid, in order to nearly eliminate the feeling of fear that once accompanied giving or taking a loan.   

For the creditors who originate loans, most commonly banks, defaults actually work to their advantage because of tax laws. When a bank “charges off” a bad loan, usually the debt is not forgiven. Instead, it is sold to a “debt buyer” who takes on the ability to collect the debt in exchange for a payment to the original creditor. The difference between the amount owed and the amount paid by the “debt buyer” is a loss to the creditor, and this loss is deducted against the banks profits. Tax laws operate in such a way that often banks’ profits may actually increase due to the ability to write off bad debts. Moreover, because banks rely on enticing consumers to take on more and more debt to maximize their profits, they would rather not sue the creditors themselves. They want to maintain an image of the “good guy” in consumers’ eyes and they don’t want a bankrupt consumer to hesitate to take out more debt from them after they emerge from bankruptcy.
As a consumer with debt in today’s world, you can be sure of one thing: the creditors who loaned you money will take advantage of every law on the books to their advantage, including taking a bailout paid for by your taxes or filing bankruptcy themselves when they make too many stupid loans, and they WON’T waste a minute feeling badly about it. It’s just business. You, as a consumer, can have the same attitude. With the help of a debt settlement lawyer, you can take advantage of any law that allows you to improve your situation in any way. It’s just business.

So what are the laws that you can take advantage of?  Obviously the greatest advantage comes from paying your debts in full.  The credit reporting system rewards this by propping up your credit score and gives you the greatest access to credit in the future at the best rates.  But if you can’t pay in full without incurring undue hardship, then the next best thing is to utilize to your advantage the fact that the “debt buyers” who purchase your debt often pay a small fraction of the amount of the debt for the right to collect. 

For you, this means that the debt buyer will earn back more than double their investment even if you settle for 20% of the total balance owed!  If your credit has already been  hit by delinquencies due to being behind on your payments with the original creditor, there is very little incentive to pay the original creditor.  The best thing may be to wait until it is in the hands of a debt buyer, when the incentive structure means that a settlement for a fraction of the total balance will be in your interest and the debt buyer’s interest.  Moreover, when a debt is in the hands of a debt collector, a powerful law called the FDCPA (Fair Debt Collection Practices Act) comes into play (link to other section), which can turn the tables in a consumer’s favor if a collector violates that law.  Finally, for consumers who lack even the ability to pay 20 to 30% of the balances of their debts, bankruptcy is an option.  Bankruptcy does harm a consumer’s credit score dramatically at first, but the effect goes down over time and there are even lenders who specialize in offering loans to recent bankruptcy filers.  While many have negative feelings toward filing bankruptcy, these feelings are not reasonable in today’s world.  Beside the fact that banks who get into debt will get bailed out by the government and suffer no repercussions for it (unlike you, whose credit scores suffer a huge negative impact), the fact is that you and others have been “paying for” your right to file bankruptcy your entire life.  Again, a certain percentage of defaults on loans is calculated into a bank’s business plan.  When you and I pay an exorbitant interest rate, we are paying that rate to (more than) offset the bank’s losses in the event that we or somebody else fails to pay that money back.  Bankruptcy may not be something to be happy about, but it is your right.  It’s just business.

 

If you need help negotiating the complicated world of debt and credit laws, what could be better than a free consultation with a debt relief attorney who is an expert in doing just that? Click here to be connected with an expert debt/credit attorney for a free consultation.  These attorneys can help you take advantage of your rights to improve your situation.

What those we have helped have to say

“Thank you!  I’m appreciative of your kind and NO JUDGMENT approach.  I will recommend you to others.  No one knows that there are people like you out there.

 

Thank you again,

Catherine (Oregon)”

 

“These testimonials were written by a client of one of the law firms that this site can refer you to for assistance.”

What those we have helped have to say

“I have had the privilege of doing business with Josh for a few years now whenever I’ve been harassed by credit card debt collectors, particularly when I’m not the guy they seek. But Debt Collectors don’t listen they just want somebody’s money. Well let’s just say we took theirs!

  At times I’ve had my own credit card issues and some I fought the 3rd party interloper, aka the Debt Collector. In some I discovered by this firm’s suggestion that they can actually get a settlement with the original creditor or even a legit Debt Collector who has properly proven they bought the original debt. Settling in at least one of my cases was just under half of what I owed.  I felt good knowing this suggested outcome included accurate credit reporting once an agreement was reached and I was easily able to pay Josh for a job well done.

 

Bob (Oregon)”

 

“These testimonials were written by a client of one of the law firms that this site can refer you to for assistance.”

What those we have helped have to say

“Thank you, really.  In all the years I’ve spent trying to get any sort of help with these loans, you guys are the only ones that have accomplished anything.  I truly appreciate it.  Thank you again.

 

Dustin (Oregon)”

 

“These testimonials were written by a client of one of the law firms that this site can refer you to for assistance.”

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