01.26.2015 | by Chris Frye
Many individual borrowers have the misconception that a credit card company can’t really do anything to hurt you if you are unable to pay. This is not true. Aside from the obvious thrashing of your credit, the next few paragraphs will explain what is very likely happen if you fall behind and are unable to pay a credit card debt.
01.21.2015 | by Kenny Steinberg
The bills are coming in already. The phone calls are right behind. Everybody wants to be paid. It’s a new year, but nothing has really changed.
And why would you expect things to change unless you have changed? If you are late on your payments, why would you think that your creditors would give you a break just because it’s a new year? And if you are making just the minimum payments, why would you think that it was now going to take you less than 15 years to pay off the debt? Did you think there would be
The only way things are going to change is for you to change. That means that you have to take action. Action can include many different things: making and sticking with a budget, getting another job, reducing your expenses, getting debt counseling. Or seeing an attorney with experience in the area that you are concerned about.
We have that experience at Steidl and Steinberg. We have been doing work in this area since the beginning of our existance in 1985. And we are prepared to discuss different types of solutions that may work for you. And we will consult with you for free.
Solutions may or may not include the consideration of a bankruptcy. And there are different kinds of bankruptcies to consider, including those that pay back money to creditors that those
that do not.
01.20.2015 | by Lauren Lamb
I take it for granted that when I flip a light switch, turn on the faucet or light a burner on my stove that my electric, water and gas will be there for me. While we've all experienced normal interruptions in service after a storm or pipe break, some people live without utilities or don't know when they will lose them due to their inability to pay the bills.
01.19.2015 | by Kenny Steinberg
Let’s suppose you owe lots of money to the IRS for back due income taxes. And let’s
suppose that you have filed all of your tax returns. Let’s suppose also that you were in dire
financial straits when you accumulated this debt, but things are looking up now: you can make
substantial payments, and the IRS knows this, but because the debt is so high, the interest is
eating you alive.
We may be able to help at Steidl and Steinberg. Consider filing a Chapter 13 bankruptcy that will pay back the IRS their income
taxes either in part or in full, but at 0% interest.
There are too many possible situations to put into this article, so let me share with
you one example. A man and his wife accumulated almost $150,000 worth of
income tax debt, including penalties and interest, over several years. His wife was not gainfully
working during much of that time, so their ability to pay this old debt was not good. But his wife
is now working, and their combined incomes are substantial. Because of their current good
fortune, the IRS is not willing to settle their debt for a fraction on the dollar, so they will not be
able to settle this $150,000 tax liability for, say, $40,000. And the payments that the IRS is
proposing will mean that the two of them may be paying the IRS for most of their lives.
Here is what I proposed: they would do a Chapter 13 Reorganization. As part of this, they
will pay off their vehicles, bring their mortgage payment, now delinquent by three months, up
to date. The unsecured debt, mostly medical bills, totalling about $15,000, will be paid in full.
And so will the IRS. But the IRS debt will be paid at 0% interest, which means that it will be paid
in full over the next five years, instead of over the next ten or twenty. This will save the clients
tens of thousands of dollars.
Is this the solution for you? I don’t know; I haven’t spoken to you yet. Give us a call at Steidl and Steinberg and
we’ll see. You have nothing to lose but your debt.