Are you a Utah resident with lots of debt? Are you frantically trying to avoid the pitfalls of bankruptcy? Debt Settlement could be the answer!
Debt Settlement is a simple and easy debt process where the debtor and creditor agree on a reduced sum of money that will be regarded as payment in full.
There are two ways to settle you debts, on your own or with the help of a reputable debt settlement company.
Settling your debt amounts on your own is not easy, but not impossible. All you need is the patience to handle your creditors and some knowledge of the law.
Here are some simple guidelines on how to settle your debts by yourself:
If you don't think you can settle your debts on your own, then get help from an established debt settlement company. These companies specialize in debt settlement and know the right tactics to gets your debts reduced, and ensure that your creditors can't make harassing and abusive collection calls while you are on the settlement program.
Once you enroll in a settlement program, one of the company's lawyers thoroughly evaluates your finances and your debt. The lawyer then negotiates with your creditors to eliminate late-fee elimination and reduce your debt. Effective debt negotiation can reduce your debts up to 60% and ensures there are no loopholes.
Always look out for the following when you are deciding on a debt settlement company:
The time it takes to settle your debts Utah depends on the kind of debt, the amount of your debts, and the number of debts you want to settle. While, a usual credit card debt settlement case in Utah would take you at the most 3-9 months, other kinds of debts would take about 1 to 3 years to get settled.
The extent to which debt settlement impacts your credit score depend on:
If you settle your accounts that are already delinquent, it increases your credit score. These accounts then appear as "paid off"/ "settled" on your credit report.
As you start settling your debts, initially your credit score decreases as your accounts go delinquent. On the successful completion of the settlement program, your score improves, putting you in a better position than you were before.
The IRS regards the entire amount of the debt forgiven by your creditors as taxable income to you, unless you can show you were insolvent on the day before the debt was forgiven. The creditor(s) must report the amount to the IRS and Utah taxing authority and send you a 1099-C for the tax year in which the debt was forgiven.
In order to be sure about the effect debt settlement will have on your state income taxes; you should consult a tax professional in your area.