San Diego, CA 

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Today. Debt negotiation (or debt settlement or debt forgiveness) is a common method of handling credit card debt. Negotiating credit card debt is an agreement between the debtor and creditor where the debtor agrees to pay a reduced amount of the debt as a settlement payoff of the full amount owed. In this negotiation the creditor agrees to take a loss and cease debt collection efforts if the debtor agrees to pay some reduced amount, either in a lump sum or over a term of payments. Debt negotiation should not be confused with debt consolidation . In debt negotiation, the creditor will agree to accepting a reduced balance after a period of time that the debt has been in default.

The cons of debt settlement are that the debt must be in default for the creditor to negotiation a reduced balance. For many consumers in debt they have no choice about the debt being in default because they have other more important bills to pay such as rent or mortgage and food bills. Because the debt is in default the consumer’s credit score will usually fall. However, consumers should note that anytime they are using 30% or more of their available credit limit their credit score falls.

The pros of debt negotiation are straight forward. A consumer will only pay back a fraction of the original balance that was owed. In this manner the consumer gets out of debt faster and for much less money than other debt management plans. The only method a consumer has to getting out of debt for less than the balance owed is bankruptcy, and the pros of debt negotiation over bankruptcy are numerous. A bankruptcy stays on a consumer’s credit report for 10 years, and a consumer can only declare bankruptcy every 7 years. The credit report impact is much more severe. In addition, consumers with income or assets will simply not qualify for bankruptcy.

When considering debt negotiation note that debt negotiation should only be performed by a qualified debt settlement attorney. Debt in default has the risk of lawsuit and a debt negotiation company cannot handle a lawsuit and should not be performing consumer debt negotiation. Only a qualified debt negotiation law firm has the legal expertise, experience, and licensing to handle debt negotiation and the legal advising that goes along with it.

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San Diego, CA

Today. Young Americans continue to carry the heavy burden of their student loans. This burden not only affects the borrowers, but also affects the economy as a whole because these consumers cannot afford to purchase homes. Total student loans have topped well over $1 trillion dollars, increasing 7.1% over the last 12 months. A recent article in the San Diego Union Tribune explores this economic problem.

Prior to the economic downturn of 2008, consumers with student loan debt were actually more likely to take on home loans due to other positive factors including higher earnings, better jobs, and greater economic potential. Now, the trend has shifted sharply in the other direction. Those consumers with student loans are playing a greatly reduced role our economy, not only unable to buy homes but also unable to buy cars and other consumer goods. More troubling is that student loan delinquencies and balances are on the rise. Total American credit card debt stands at $700 million dollars and overall American consumer debt has risen to $11.8 trillion dollars.

Action Plan: If you are burdened by student loan debt that prohibits other major purchases consult a qualified and licensed debt settlement attorney. A qualified debt settlement attorney is a licensed expert in the field of consumer finance and should be the only source for a legal opinion on debt. During an initial free consultation the attorney can discuss available options to get out of debt and on the way to financial freedom.

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California’s recently enacted Homeowners Bill of Rights may bring good news for homeowners that were victimized by a wrongful foreclosure.  Homeowners who were attempting or attempted to modify their mortgage without success and were foreclosed may have rights under the new law.

Ocwen, the nation’s fourth largest mortgage servicer, is preparing to settle with the Federal Government for $2.1 Billion in connection with allegations of wrongdoing in  foreclosure practices. Ocwen specializes in delinquent and sub-prime mortgages, and stands accused of robo-signing, dual tracking, and denying modifications without adequate review. Many homeowners across the nation have been affected. Ocwen’s executive chairman was just names on Forbes list of wealthiest Americans at a whopping $2.3 Billion in net worth.

http://www.sacbee.com/2013/12/19/6014943/california-homeowners-to-receive.html

Any homeowner that was the victim of a foreclosure in California after January 1^st, 2013 should consider reaching out to set a free consultation with a law firm like ours knowledgeable in the protections afforded by The California Homeowners Bill of Rights.   Lenders must now play by the rules during the process, and, if they do not,  the homeowner may be entitled to $50,000 or more in damages plus attorneys’ fees.

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Unfortunately credit card debt survives the death of the card holder and leaves the survivor with issues to address.  Typically credit card debt must still be repaid after the death of a debtor and usually must be paid by the estate of the deceased.  This is a common problem with inheritances where the relatives or surviving family members expect to inherit large sums of money and did not know the extent of the credit card debts incurred by the recently deceased.

In the absence of a debt settlement attorney helping guide the estate, if the remaining estate has more than is owed, then the debts are repaid in full.  If the estate has less than is owed, then the debts are paid off as much as possible and the losses can be written off by the creditor. This however varies by state law.  For example in community property states like California, the surviving spouse is jointly responsible for the debts incurred during the marriag and instead of writing off the unpaid debt, the creditor can go after the surviving spouse.

When dealing with the debt or credit card debts of the recently deceased, contact a qualified California debt settlement attorney.  A qualified debt settlement attorney can work both before and after the death of a consumer to likely reduce and  settle debt for much less than the principal balance owed which can ensure the maximum remaining balance is inherited by the family- not going to the credit issuers.  No one typically prepares for a death so don’t leave your debts as something hanging out there as it could be a big issue to the survivors. If you are preparing for a loved one’s death, include a debt settlement attorney in that planning to analyze and settle debts before and after death.

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A recent headline reads: “Grieving parents hit with $200,000 bill for their 27-year-old daughter’s student loans after she died suddenly.” The story comes out of Redlands, California where a local pastor and his wife endured losing their daughter suddenly to liver failure in 2009. Their daughter left behind three small children and over $200,000 in student loans, some with as high as 12% interest rates. While the father did co-sign the loans, he clearly did not expect for anything to happen to his daughter that would leave him holding the entire bill. Unable legally to declare bankruptcy to rid himself of the huge debt,  the pastor, Steve Mason, 59, and his wife Darnelle have reached their wits end.

Each time they have appealed to the student loan lender for help, the couple have been told that the only solution is to repay the loans in full. Not to mention, the situation is made worse due to the fact that the couple are now the guardians of their daughter three children, ages nine, 12 and 14.

http://investmentwatchblog.com/grieving-parents-hit-with-200000-bill-for-their-27-year-old-daughters-student-loans-after-she-died-suddenly/

Unfortunately this story is the reality for all parents who co-sign for their children’s student loan debt. Parents should consider taking out life insurance policies on their kids, especially if the student loan debt is significant. This is the best preventative measure that can be taken in these circumstances. A debt settlement attorney can help by negotiating with the private student loan creditors to get significant reductions in the student loan amounts.

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The city of Victorville, CA has put a hold on new business permits for payday lending services hopefully which will halt payday loan debt from consumers in the area. The 45 day hold was put in place to adequately assess the impact of these businesses on the cities low income and minority communities, however it is expected that this would only be a temporary relief.

The city officials hope taking a step back from payday lenders, check cashing, and car title loan businesses will help the municipality better regulate these industries.  However these fast money style businesses have surged in California where officials want to ensure they are not overly concentrated and preying upon economically vulnerable communities.  A study by the Urban Law and Public Policy Institute shows that 42 percent of households with incomes of less than $25,000 per year live within one mile of a payday loan business in California.  These businesses all operate the same way, where a consumer agrees to a very high interest, short term loan that they probably will not be able to repay and are left encumbered with payday loan debt they cannot get rid of.

If you have been loaded with payday loan debt, contact a qualified California debt settlement attorney.  Payday lenders have become very aggressive with collection efforts. The loans are always are bad deal for consumers and can be negotiated on your behalf by a  qualified debt settlement attorney.

Source : http://www.vvdailypress.com/article/20140629/NEWS/140629785

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Asset Capital and Management Group, a debt collector, has been ordered to surrender more than $4 million dollars back to consumers for making false threats associated with calls for debt collection.  This Southern California debt collector was faced with $90.5 million dollars in judgments, but the judgments will be suspended under the deal.  Will this stop more debt collectors from calling? According to the deal, the four principals of the company will surrender their assets, and the assets of the company will be liquidated to refund consumers so perhaps this will make others think twice as  then the company must cease all debt collection activity indefinitely.

The Federal Trade Commission (FTC) alleged that the debt collector engaged in a number of deceptive and abusive practices violating both the Fair Debt Collection Practices Act and the FTC Act including debt collectors calling at hours beyond when they are allowed by law. As a result, the company illegally collected payments from consumers for credit card debt purchased by the company.

If you are being harassed by a debt collect hire a qualified California debt settlement attorney.  A qualified debt settlement law firm employs a team of  attorneys that understand your rights and can protect you from false claims and will work to settle debts for a fraction of the original balance.

Source: http://www.insidearm.com/daily/debt-buying-topics/debt-buying/debt-collectors-to-pay-more-than-4-million-in-ftc-settlement/

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