Debt Settlement offers the best alternative for Maryland consumers writhing helplessly on the threshold of bankruptcy. So, if you are a Maryland resident burdened with heavy debts but do not want to lose your assets, then a debt settlement program is just the solution for you!
Debt settlement is a debt relief option where in the creditor accepts a reduced sum of money from the debtor that it is regarded as repayment in full. The process of debt settlement in Maryland is no different from those in the other states.
Here are the ways in which you may get your debts settled here in Maryland:
By directly negotiating with your creditors
By seeking services from a bona fide debt settlement company
The debt settlement services offered by BBB affiliated debt settlement companies in Maryland are tailored to keep up with the varied requirements of Maryland debtors. Their services provide the best mix of debt reduction, late-fee elimination, and credit management, in order for you to achieve a permanent solution to your debt woes.
All you need to do is enroll with a bona fide debt settlement company and take your first step towards a debt free life. Here is how a company takes care of your debt issues step by step:
A BBB accredited settlement firm thus offers you the most reliable debt settlement options, with reputable lawyers to guide you through the process.
If you are not interested in paying the additional expenses of hiring a debt settlement service, then why not get your debts settled by yourself? Wondering how? Well, it is not difficult, if you have the right attitude to deal with your creditors.
Follow these few simple steps and get your debts settled by negotiating directly with your creditors:
The average duration and cost of debt settlement programs in Maryland depends on the following:
The greater the amount of outstanding debt, the more settlement will cost. A normal case of credit card debt settlement case can take around 3-9 months to get through; while other kinds of debts typically get settled within 1-3 years.
Debt settlement, like any other debt relief option has a direct impact on your credit score. The extent of the impact is primarily decided by the following factors:
If you settle your delinquent debts, it will increase your credit score immediately, especially if these accounts appear as "paid off"/ "settled" on your credit report.
However, opting for debt settlement does not necessarily imply that you have a poor credit score. You may choose debt settlement even if you have a good credit score. The driving reason that propels a debtor towards debt settlement is their inability to continue with monthly payments.
Therefore, debt settlement could be beneficial even if you do not have delinquent debts and your credit score is in a good shape. The moment you start settling these debts, your credit score lowers as your accounts go delinquent. But that is just a temporary phase. On successful completion of the settlement program, your score increases again. That puts you in a better position than someone who has been lagging behind on his debt repayments.
Thus, debt settlement in general, strives to give you a healthy credit report.
A debt settlement program in Maryland would help you reap the following benefits:
The IRS considers any forgiven debt amount to be taxable income.
On the completion of the debt settlement process, your creditor must report your forgiven amount to the IRS and send you a 1099C so that you can report the income on your Federal income tax return.