November 24, 2017

The “Do It Yourself Bailout” – Part Five of Jonathan’s Interview with Kenny Golde

Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed Kenny Golde, a self employed filmmaker who found himself almost a quarter of a million dollars in debt when when a business deal fell victim to the economic downturn.   Using negotiation techniques he developed (and has subsequently written about in a book), Kenny has managed to eliminate more than half of this debt through negotiation.  Here is part five of our conversation – it lasts about 7 minutes.  In this segment, Kenny notes that most lenders will not consider negotiation with you until you are 90 days late.  He also talks about credit scores – and why this number is less important than most people think.  Part 6 – the final segment – will be posted tomorrow.

Link to Kenny Golde’s book “The Do It Yourself Bailout.”

The “Do It Yourself Bailout” – Part Four of Jonathan’s Interview with Kenny Golde

Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed Kenny Golde, who found himself with $250,000 of credit card debt and no way to pay it all back.  However, with tenacity and focus, Kenny has managed to eliminate more than half of this debt through negotiation.  Here is part four of our conversation – it lasts about 8 minutes.  We discuss the procedure for entering into a written settlement agreement with your creditor and the steps you must take to ensure that your settlement is honored by the creditor or collection agency.  Part 5 will be posted tomorrow.

Link to Kenny Golde’s book “The Do It Yourself Bailout.”

The “Do It Yourself Bailout” – Part Three of Jonathan’s Interview with Kenny Golde

Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed someone who started with $250,000 of credit card debt and with tenacity and focus, has managed to eliminate more than half of this debt through negotiation.  Here is part three of my conversation – it lasts about 8 minutes.  Kenny points out that there is nothing morally wrong with settling debt.  He explains that the term “charged off debt” means nothing – it usually just means that the creditor has sold its debt to a debt buyer.  He points out that many collection agencies buy debt for 5 to 10 cents on the dollar, which is why they would be willing to settle for 50 cents on the dollar or less.  Finally Kenny notes that any debt settlement should be in writing and that you should never send any money without a written agreement. Part 4 will be posted tomorrow.

Link to Kenny Golde’s book “The Do It Yourself Bailout.”

The Do It Yourself Bailout – Part Two of Jonathan’s Interview with Kenny Golde

Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed someone who started with $250,000 of credit card debt and with tenacity and focus, has managed to eliminate more than half of this debt through negotiation.  Here is part two of my conversation – it lasts about 8 minutes.  Kenny and I discuss the psychology of debt collection and the importance of seeing debt negotiation as a business transaction free of emotions or guilt.  “You are the CEO of your own corporation,” Kenny advises.  Part 3 will be posted tomorrow.

Link to WalletPop (Now Daily Finance) article discussed by Kenny in this segment

Link to Kenny Golde’s book “The Do It Yourself Bailout.”

The “Do It Yourself Bailout” – Part One of Jonathan’s Interview with Kenny Golde

Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed someone who started with $250,000 of credit card debt and with tenacity and focus, has managed to eliminate more than half of this debt through negotiation.  Here is part one of my conversation with author and filmmaker Kenny Golde, who discusses with me his remarkable story about how he ended up with hundreds of thousands of dollars of debt and how he came to realize that debt negotiation is a business strategy and that the guilt and emotional efforts of debt collectors are merely tactics.  This first segment lasts about 8 minutes.  Parts 2 will appear tomorrow on this blog, with subsequent installments appearing every day through the February 4th post.

Link to Kenny Golde’s book “The Do It Yourself Bailout.”

Link to Kenny Golde’s web site.

“Debt Settlement” vs. Bankruptcy

Although I am a bankruptcy lawyer, I tell everyone who visits my office for a consultation the same thing:  “bankruptcy is a last resort – do not file for bankruptcy unless you have no other choice.  It will damage your credit and negatively affect your financial future for months or years to come.”

What, then, are the alternatives to bankruptcy if you are struggling with out-of-control debt?

One of the best known but least understood solutions to debt is known as “debt settlement.”  In general terms, debt settlement refers to a process by which you or a representative negotiates with a creditor for:

  • a lower balance/forgiveness of debt
  • a reduced interest rate
  • a reduced monthly payment
  • some or all of the above

Unfortunately it is easy to speak of debt settlement in the abstract – as always “the devil is in the details.”   Here are my observations: [Read more…]

Debt Negotiation vs. Filing for Bankruptcy

Over the past few months, my of counsel officemate Susan Blum and I have met with dozens of potential bankruptcy clients for whom bankruptcy may not be the best solution.  While it may seem strange that a bankruptcy lawyer would tell you not to file bankruptcy, I advise everyone with whom I meet that bankruptcy is and should always be considered a last resort and that non-bankruptcy alternatives should be part of the discussion.

A negotiated debt settlement constitutes one viable alternative to bankruptcy.  In a debt settlement negotiation, you or an agent working on your behalf contacts your creditors to work out a payment plan for your debts.  A true debt settlement involves a reduction of both your total debt as well as the interest payments.

I occasionally get involved in a debt settlement although you really do not need an attorney.  I do recommend that you engage the services of a third party to negotiate your debt – given the antagonistic and  personal nature of this type of negotiation it is very difficult to speak to a risk manager at a credit card company about your own debt. [Read more…]

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