Debt Settlement vs. Bankruptcy Top-Rated Attorneys in Los Angeles

Los Angeles Debt Settlement Attorney

Debt Settlement vs. Bankruptcy

If you are struggling with debt, bankruptcy is not your only option. In some cases, it is possible to arrange a debt settlement with your creditors. However, we urge you to use caution before entering into such an arrangement. There may be tax consequences and other hidden risks that could leave you in worse financial shape than when you started.

The attorneys at Resnik Hayes Moradi LLP can help you explore all of your debt relief options. We offer you sound legal guidance, so you can make informed decisions about how you wish to resolve your debt problems.

Contact our bankruptcy attorneys in Los Angeles to take the first step in resolving your financial challenges.

The Dangers of Debt Settlement in California

There is a wide range of debt settlement companies out there, and they operate in different ways. Here is a typical scenario:

You enter into a debt settlement agreement and make monthly payments to the debt settlement company which they will hold in an escrow account. The claim is that, once you have built up a reasonable settlement amount in the account, the company will then reach out to your creditor to make a settlement offer.

The problem is that there is no guarantee your creditor will accept the offer. Meanwhile, you have been paying money to the debt settlement company while your debt problems continued to grow.

The difficulty is compounded if you have multiple accounts you are trying to settle. One creditor does not care what arrangement you have with another creditor. This is why debt consolidation services also fail in achieving true debt relief.

Tax Consequences for Debt Settlement in CA

If you do settle and your debt is reduced, the IRS will consider the reduction as income and tax you on it. This can leave you with a significant tax bill at the end of the year. The debt discharged in bankruptcy is not taxed.

For experienced legal guidance in your debt relief matter, consult with one of our Los Angeles bankruptcy attorneys at your earliest convenience by calling (213) 344-0043.

Testimonials 

See What Our Clients Have to Say 
  • Without the support of pro bono attorneys we couldn't do all the work we need to do, and your firm in particular is outstanding.

    “Thank you for your great work on behalf of Ms. Johnson. Without the support of pro bono attorneys we couldn't do all the work we need to do, and your firm in particular is outstanding.”

    - Skip K.
  • Was very impressed with the comprehensive professionalism of the firm...

    “Was very impressed with the comprehensive professionalism of the firm, especially Matthew Resnik... I had suffered through the incompetence of two previous bk lawyers not to mention fees far greater ...”

    - G.L
  • He not only saved my house but also got rid of all my debt. They are not your typical attorneys and their creativity really allowed me to do things that other attorneys never mentioned in previous consults.

    “Fantastic office! I want to thank Matt for taking his time with me and sincere in his assistance. He spent over an hour with me for free during our initial consult. I left knowing exactly what's ...”

    - David K.
  • He negotiated on my behalf with a credit card company and was able to settle with them for much lower than I could have on my own.

    “I worked with David Kritzer at this firm, and he was great. He negotiated on my behalf with a credit card company and was able to settle with them for much lower than I could have on my own thanks to ...”

    - Kelly S.
  • I cannot thank them enough for helping save my home. I would recommend them for anyone that is thinking about filing for bankruptcy or foreclosure on their home.

    “I needed a bankruptcy attorney in Sherman Oaks and found Matt Resnik on Google. He has one of the best-reviewed bankruptcy law firms on Yelp so I decided to check it out his law firm for myself. I ...”

    - Joseph R.
We Make Debt Relief Easy

Committed to making the process as stress-free as possible for our clients, our Los Angeles bankruptcy attorneys and dedicated staff will handle everything for you. From filling out paperwork through getting end results, we will work to help your case run smoothly and efficiently. We serve our clients in English, Spanish and Farsi.