If you’re facing a series of credit card bills that you can’t pay back, then you may be looking for options to help you reduce the burden. One of those tempting alternatives may be credit card debt forgiveness. While the idea that there’s an agency that will magically remove your debt or even just a portion of your debt may be quite ideal, that’s a bit too good to be true. There are some cases in which institutions forgive debt entirely without you paying anything, but they are scarce.
How Forgiveness Works
You may be able to get a portion of debt removed from your accounts, but the law requires you to pay taxes on the removed part at a later time. To determine if you’ll need to pay taxes on the removed amount, you have to figure out a complicated formula with insolvency. Tax debts can be burdensome on their own, so you may need to bring in a tax agency to figure out if you need to pay taxes on the amount taken out of your debt.
If the amount you owe is small enough that you can pay back the debt, then perhaps credit card debt forgiveness is a viable option for you. The point is to be able to pay that money back without adding more to your debt.
You Have Options to Pay Your Debts
There are a few other opportunities you may consider when facing a large pile of debt. You may choose to speak to a debt settlement company. If you decide to do this, it’s best to have legal help, as these companies can easily take advantage of you. They may not be entirely legitimate either. Their goal is to get you a settlement with the debt collection agency or credit card company by forming the debt into a lump sum that you can pay off either at once or with installments.
That amount is usually much less than your original obligation. To do this, they often charge you a significant amount for their services. It’s always best to research the company first to see how they conduct business.
Contact Illinois Credit Card Attorneys Today
While quick debt forgiveness plans may seem like the go-to option for eliminating your consumer debt, it’s not always as straight-forward as it seems. If you’re looking for an avenue of debt relief that is proven effective and can help keep you out of getting back in debt, you should speak with an Illinois credit card debt attorney at Benveniste Law Offices.
Getting rid of debt takes more than consolidating loans or taking out a loan to pay a loan. It requires the legal expertise of an attorney who can effectively negotiate with creditors on your behalf to implement a debt repayment schedule that’s favorable to you which may even involve lowering the amount you owe. Heather Benveniste has helped many people get their credit card debt issues under control by effectively negotiating with creditors and can do the same for you. Contact us today at 1-800-497-5358 for your free case evaluation.