http://www.thebklawyer.com/thebkblog/2009/05/14/debt-negotiation-vs-filing-for-bankruptcy/ Personal Bankruptcy tips and tricks moderated by Atlanta lawyer Jonathan Ginsberg Tue, 17 Jan 2012 01:57:46 +0000 hourly 1 http://www.thebklawyer.com/thebkblog/2009/05/14/debt-negotiation-vs-filing-for-bankruptcy/#comment-12087 Jonathan Wed, 24 Mar 2010 21:25:28 +0000 http://www.thebklawyer.com/thebkblog/?p=346#comment-12087 <p>Les, I believe that there would not be taxable income if the debtor was insolvent at the time he negotiated his settlement.</p> Les, I believe that there would not be taxable income if the debtor was insolvent at the time he negotiated his settlement.

]]> http://www.thebklawyer.com/thebkblog/2009/05/14/debt-negotiation-vs-filing-for-bankruptcy/#comment-12005 Les Riggs Wed, 24 Feb 2010 08:14:00 +0000 http://www.thebklawyer.com/thebkblog/?p=346#comment-12005 <p>I have found that if you owe a little or a lot, bankruptcy is still better than debt forgiveness. When Kenny Golde negotiated his debt from 200K to 30K, he just tacked on 170K to his taxable income, plus he still has to pay the 30K settlement. If he had filed bankruptcy, the whole 200K would have been wiped out. As for his credit rating, renegotiating still goes on your record for 7 years, something they forget to mention in the ads. That's 7 years after you finish paying it off. If you get into a payment plan where you pay it off in 3 years, that means you have a bad credit mark for 10 years, the same amount of time as bankruptcy. With bankruptcy, you can begin rebuilding your credit the day after it's discharged. With negotiation, only after the last payment. Furthermore, once you have paid off any negotiated credit cards, they will close your accounts and you will be in the same situation as if you had filed bankruptcy. If you're going to spend money to get out of debt, spend it on a good bankruptcy lawyer.</p> I have found that if you owe a little or a lot, bankruptcy is still better than debt forgiveness. When Kenny Golde negotiated his debt from 200K to 30K, he just tacked on 170K to his taxable income, plus he still has to pay the 30K settlement. If he had filed bankruptcy, the whole 200K would have been wiped out. As for his credit rating, renegotiating still goes on your record for 7 years, something they forget to mention in the ads. That’s 7 years after you finish paying it off. If you get into a payment plan where you pay it off in 3 years, that means you have a bad credit mark for 10 years, the same amount of time as bankruptcy. With bankruptcy, you can begin rebuilding your credit the day after it’s discharged. With negotiation, only after the last payment. Furthermore, once you have paid off any negotiated credit cards, they will close your accounts and you will be in the same situation as if you had filed bankruptcy. If you’re going to spend money to get out of debt, spend it on a good bankruptcy lawyer.

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