Debt Settlement in Florida
If you are a resident of Florida facing overwhelming debts, it is time for you to consider some serious debt settlement options. It will not only relieve you from your everyday tensions of debt repayment but also save you from drowning into debts.
Debt settlement in Florida enables you to reduce your debts and improve your finances. So, if your debt problem is giving you sleepless nights, stop worrying! Your solution at your fingertips!
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How Debt Settlement works in Florida
Debt settlement in Florida is the same as debt settlement in every other state. The first thing you need to do is to confirm that the company you are considering for debt settlement is accredited by the Better Business Bureau (BBB). If the accreditation is properly listed you can enroll yourself with the company and discuss your financial situation. The company will offer a customized solution based on your needs and provide you with the help you need.
In Florida, you can negotiate your debts down on your own or through a debt settlement company. In either case you or the company negotiate with your creditors to reduce the amount of debt that you owe. An experienced debt settlement lawyer can negotiate with your creditors to get you the best deal. If the settlement program is successful, you will save a lot of money.
In order to be eligible for a debt settlement program you must be financially unable to make the minimum payments.
Duration of the Settlement process in Florida
In Florida the duration of the settlement process varies according to the client's situation their ability to pay. Most of the time, the case gets resolved in about 15 to 36 months. The more you can pay toward your debt, the faster you will be debt free!
How Debt Settlement in Florida affects your Credit Score
Debt settlement is one of the best options to consider if you have a lump sum debt. However, debt settlement does have some adverse effects on credit ratings, but not as bad as bankruptcy. In some cases, if negotiation fails the creditor may take legal action against the consumer in order to collect the full amount.
Benefits of Debt Settlement:
- You repay less than the original debt you owed.
- Freedom from late night calls from creditors.
- After the settlement is finished you can start saving money.
- You are protected from wage garnishment and mortgage foreclosure.
Tax Consequences
In Florida the tax consequences of debt settlement can be confusing. The IRS regards any unpaid amount of debt forgiven by a creditor to be income to the debtor, and requires that they pay taxes on that amount unless they are insolvent.
If you are insolvent (you owe more than you own), you do not have to pay any taxes on the amount of debt forgiven. Florida residents should consult a tax specialist in their state to find out the requirements of their state taxing authority.
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