Debt Settlement FAQs
Guidance for Business Owners in NYC & Nationwide
Facing rising debt obligations with no avenue for relief can be incredibly overwhelming and scary, especially for business owners who have the financial stability of themselves, their business, and their employees to consider. The debt settlement attorneys at Raiser and Kenniff, P.C. appreciate what you are up against and are here to help.
Below, we answer some commonly asked questions about debt settlement and how an attorney can help with the debt settlement process. We are also always available to provide personalized guidance to clients both in New York and across the US.
Please fill out our online contact form or call (888) 646-0025 to schedule a consultation with us.
What Do I Do if I Receive Notice of a Delinquent Debt?
If you receive a notice of a delinquent debt, it is crucial to act swiftly. First, verify the debt details and ensure that the notice is accurate. Though it may feel premature, consulting an attorney at this point could be a good idea. A qualified debt settlement law firm, like Raiser and Kenniff, P.C., may be able to contact the creditor on your behalf to discuss the situation and explore repayment options.
Whatever you do, do not ignore the notice; doing so can lead to further penalties and legal actions.
What Do I Do if I Believe This Debt Is Not Mine or Is Inaccurate?
If you believe the debt is not yours or inaccurate, you should dispute it in writing as soon as possible. Include evidence supporting your claim, such as payment receipts or identity theft reports. Your attorney can help you draft your dispute letter.
Send the dispute to both the creditor and the credit reporting agency. Keep copies of all correspondence for your records.
What Happens if I Can't Pay a Debt?
If you cannot pay a debt, it is vital to communicate with your creditor immediately. This can be daunting, but an attorney can help. Again, though it may seem premature, especially if you haven't defaulted on your debt, a skilled attorney experienced in debt settlement may be able to introduce you to options and strategies for managing your debt that you are unaware of.
With the help of your attorney, you can explain your financial situation and inquire about possible solutions such as:
- Negotiating a lower monthly payment
- Requesting a temporary payment forbearance
- Exploring debt consolidation options
Being proactive can sometimes help prevent the situation from escalating to legal proceedings.
How Do I Deal with a Debt Collection Lawsuit?
If you are served notice of a debt collection lawsuit against you, your first step should be to secure legal representation from a qualified debt settlement attorney, like ours at Raiser and Kenniff, P.C.. The sooner you do this, the better, as you have a limited timeframe within which you must respond to the lawsuit.
Ignoring the lawsuit can result in a default judgment against you, leading to wage garnishment or bank account levies. Your attorney can guide you through submitting your "Answer" and all the following steps.
The lawsuit process may involve negotiating a settlement, asserting valid defenses (such as improper service or expired statute of limitations), or arranging a payment plan. Remember, having legal representation can significantly impact the outcome of your case.
Do you have more questions about debt settlement or how our firm can help you deal with overwhelming business debt? Contact us online now to schedule a consultation.
Client Testimonials
Our Clients Rave About Their Results-
They were always available quickly, to address my concerns. Having dealt with some law firms before, I really appreciated this.
“Steven Raiser's law firm handled my case with excellence throughout the process. I had a SBA EIDL loan that got transferred to the Department of Treasury unexpectedly, and had a 30% penalty added to the amount due, and due very quickly, which was very stressful. After talking with Steven Raiser, and working with Harry Gill, who was absolutely brilliant in working with me and preparing the case, they were able to recall the case to the SBA. They were always available quickly, to address my concerns. Having dealt with some law firms before, I really appreciated this.
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Debt Settlement FAQs Continued
What Happens if I've Started a Payment Plan and Now Can't Make Payments?
If you can no longer maintain payments on a previously agreed-upon payment plan, contact your attorney to discuss how to approach your creditor or financial institution. The sooner you do this, the better. Contacting your creditor before you have missed a payment can be incredibly beneficial and demonstrate that you are acting in good faith to manage the debt.
Your attorney may be able to advocate for you with your creditors, exploring options to restructure the plan to suit your current financial situation better. Maintaining open and proactive communication can often lead to more favorable terms and prevent default.
What Happens if I Default on an SBA Loan?
Defaulting on an SBA loan can have serious consequences, including legal action and seizure of collateral. The Small Business Administration (SBA) may negotiate a settlement or offer an alternative repayment plan. It is advisable to consult with a legal professional experienced in debt settlement to explore your options and mitigate potential risks.
Can Debt Be Settled for Less than I Owe?
Yes, in some situations, settling a debt for less than you owe is possible. This process is known as debt settlement or debt negotiation. Typically, your attorney will negotiate with the creditor to agree on a reduced lump sum payment that satisfies the debt.
Creditors may be willing to accept less than the full amount if they believe that it increases their chances of being repaid something rather than nothing. It is important to approach debt settlement carefully, as it can affect your credit score and taxable income.
Consulting with a debt settlement attorney can help you understand how this process might work for you.
What Happens if I'm Struggling Under an MCA (Merchant Cash Advance)?
If you are struggling under the terms of a Merchant Cash Advance (MCA), it is critical to seek help immediately. MCAs can be particularly challenging due to their high interest rates and frequent repayment schedules, which are tied to your business' credit card sales.
If you find yourself unable to keep up, contact our debt settlement attorneys to discuss your options. We may be able to negotiate with the MCA provider to restructure the repayment terms, potentially reducing the daily or weekly payments to a more manageable level.
Additionally, an attorney might be able to challenge the legality of specific MCA terms if they are deemed predatory or unfair.
What Is a Debt Settlement Plan?
A debt settlement plan is a financial tool that allows you to consolidate your unsecured debts into one monthly payment. You make this payment to a credit counseling agency, and they distribute the funds to your creditors. This payment plan can be a good option if you're struggling to meet your monthly obligations and are not eligible for a debt consolidation loan.
A debt settlement plan can help you:
- Reduce or eliminate interest charges
- Pay off your debts more quickly
- Lower your monthly payments
- Protect your credit score
Why We're the Right Choice
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Risk-Free Consultation
We offer a risk-free evaluation of your case and are here to help you understand your legal options. We are available 24/7, day or night, to help you.
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Top-Rated Team
Recognized as the top attorneys in the USA.
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Former ProsecutorsOur founding partners are both former New York prosecutors who bring unique experience and insights to every case, especially when it comes to going to trial.