Debt Negotiation Serving Families Throughout Mobile

Mobile Debt Negotiation Attorney

In some cases, it is a better option to contact creditors to negotiate a settlement of your debts. However, please keep in mind that when you settle outside of bankruptcy, the debt is "forgiven." The creditor can file a 1099 which tells the IRS that the forgiven debt is earned income which must be included as gross income on your tax return.

What Happens If Your Debt Was Purchased?

There are some cases where your debt was purchased by an individual or a business engaged in buying "bad debts." When a debt buyer proceeds to collect on the debt, you have several available defenses. The Fair Debt Collection Practices Act provides a federal statutory scheme that third party collectors are required to follow when they attempt to collect a debt. Under the FDCPA, you have the right to demand proof of the debt from the collector. If you have retained a debt relief attorney, the collector is legally prohibited from contacting you.

What Happens If a Civil Action Has Been Filed?

In many cases, a debt collector will file a civil action to collect a debt. When this occurs, you may defend against the claim where the collector has not provided sufficient evidence to establish the existence of a contract.

Even if the collector presents old credit card statements and a ledger of payments made by the debtor, this still does not prove features that are usually in existence on a standard credit agreement, such as:

Applicable interest rate
Establishment of late fees
Forgiveness terms
Credits

This means that the collector or creditor may not be able to prove the actual balance due on the account, and therefore may not meet its legal burden to prove the debt by a "preponderance of the evidence."

Talk to an Alabama Debt Consolidation Lawyer

It is important to discuss the settlement of a debt, and your legal rights, with a qualified attorney. Settlement of a debt can be a tricky process. A debt consolidation attorney can draft a settlement and release agreement that will ensure the claim will not later be sold off or collected upon again. Imagine paying a collector a settlement amount of several hundred or thousand dollars, only to find out one or two years later that the debt was not properly released.

Attorney Kevin Ryan has the knowledge and experience to initiate the negotiation of a debt settlement so you obtain the maximum reduction in the settlement amount. At our law firm, Settlement and Release Agreements are drafted specifically for each debt consolidation case. We do not settle cases using "boilerplate" settlement agreements. Settlement and release agreements are drafted and tailored to each client's particular circumstances. Our attorneys utilize WestlawNext, the most respected legal research software in the industry. You can negotiate a settlement of your debts with our law firm knowing that it complies with all applicable current legal standards.

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When Bankruptcy Is Your Best Option

The best option in some cases may be a bankruptcy filing. Some creditors or debt buyers are not willing to settle debts on reasonable terms. If you file a Chapter 7 or Chapter 13 bankruptcy case, the creditor is no longer legally able to proceed with their collection of the account without Bankruptcy Court permission. More importantly, debt that is discharged in a bankruptcy case is not subject to being considered taxable income. A discharged debt is not considered a forgiven debt under the United States Tax Code. If you would like to discuss your options with respect to a collection matter, a lawsuit where you were named as a defendant, a wage garnishment, post-judgment collection matter, judgment lien matter, IRS or other tax collection matter, contact our firm today!

See Internal Revenue Service Form 982 here.

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Our FAQ

Have questions? We are here to help. Still have questions or can't find the answer you need? Give us a call at 251-241-5234 today!

What are Exemptions?

Most of the exemptions which will apply in a Chapter 7 case are found under Alabama state law. States are all given the option by Congress to decide whether to operate under their own exemption statutes, or under the exemption statutes set out under Title 11 of the U.S. Code ( the “Bankruptcy Code”). There are additional statutes ( “laws”) in both the United States Code and under the Alabama Code.
Whenever there is a statute that provides additional protection for your property over and above the standard list of exemptions, you can claim these exemptions to further protect your property. Failure to timely claim an exemptions can have the effect of a waiver of that exemption. This means it is highly important to provide your lawyer ( “attorney”) with all of the information he or she requests from you concerning your property. The panel trustee is only able to seize and liquidate property to pay creditors which is not subject to a legal exemption under Alabama OR federal law.
In Chapter 13 bankruptcy cases, the Debtor keeps all property. Exemptions are still important to identify and claim in your case, however. Failure to claim all of your exemptions in a Chapter 13 case can result in you being required to pay your creditors more than you would otherwise owe them if all exemptions were claimed.
At Ryan Legal Services, Inc., we are highly knowledgeable and keep up to date with respect to Chapter 7 and Chapter 13 bankruptcy exemptions. We represent individual clients in Baldwin, Mobile and Washington Counties.
Kevin Ryan is an experienced bankruptcy lawyer who will be there for you. Call us to set up a free telephone or office consultation. Kevin Ryan is admitted to practice before the United States Bankruptcy Court for the Southern District of Alabama. http://www.alsb.uscourts.gov
What is a Reaffirmation Agreement?

You may decide that you would like to keep your relationship with certain creditors in a Chapter 7 case. The procedure to maintain certain debts post-bankruptcy is called Reaffirmation. Reaffirmation is accomplished by entering into a written agreement with the creditor using one of a number of Official Bankruptcy Forms. Usually, the debtor and creditor simply re-establish the original terms of the loan. In some cases, the creditor may agree to reduce an interest rate, or modify the original contract terms as an incentive for the debtor to reaffirm the debt.
Reaffirmation of a long term mortgage loan or an auto loan may be something a debtor would want to consider in the context of filing a Chapter 7 bankruptcy case. The terms of the agreement, and whether the agreement would be in the client's best interest is something that a competent lawyer will discuss with a client. Reaffirmation of a mortgage or auto loan will cause the future payments to be reported to the major credit bureaus ( Trans Union, Experian and Equifax). Timely payments will help raise the debtor's credit score after the bankruptcy discharge order is issued in the Chapter 7 bankruptcy case.
A debtor will generally have only forty-five (45) days after the conclusion of the Meeting of Creditors to file the Reaffirmation Agreement. The debtor is required to file Official Bankruptcy Form 8 ( Statement of Intent) with the U.S. Bankruptcy Court that identifies the debtor's intent with respect to secured debts like auto and car loans. A debtor is never required to reaffirm any debt in a Chapter 7 bankruptcy case.
At Ryan Legal Services, Inc, we have been representing individuals in Chapter 7 and Chapter 13 bankruptcy matters since 1998. We represent individuals in Baldwin, Mobile and Washington Counties.
Kevin Ryan is an experienced bankruptcy lawyer who will be there for you. Call us to set up a free telephone or office consultation.
Should I Transfer Property Pre-Bankruptcy?

There are some cases where a client can meet with a lawyer and make arrangements to change the ownership of property, sell property, or dispose of property prior to filing a bankruptcy case. However, this should never be interpreted as a blank license to indiscriminately transfer assets out of your name. You should never transfer title to any property, or spend any amount of money that is not allocated towards necessary household bills, utilities, and pre-existing secured debt payments prior to consulting with a bankruptcy lawyer. The initial office consultation with a lawyer is dedicated mostly to discussing these issues. A lawyer will always be interested in meeting with you sooner rather than later so that these potential issues can be identified and properly addressed prior to moving forward on your case.
Transfers of property, or spending discretionary funds prior to filing a bankruptcy case can often result in negative consequences when you later file a bankruptcy case. Every bankruptcy case presents different circumstances, and different opportunities to legally protect your property from creditors. The objective in most bankruptcy cases is to protect all or as much of your property while terminating all or most of your debt. This is usually where a bankruptcy case can become too complicated for a person to obtain all of the benefits of a bankruptcy filing by filing a case without hiring a lawyer. The best bankruptcy attorneys set and accomplish goals with their clients to protect the maximum amount of property and obtain a discharge of all or a maximum amount of the client(s)' debt in the least amount of time.
You should not transfer any of your property until you speak with a qualified, experienced bankruptcy attorney. At Ryan Legal Services, Inc., Attorney Kevin Ryan has more than 18 years experience handling complex Chapter 7 and Chapter 13 Bankruptcy matters. Call now to schedule a free telephone or office consultation. We are happy to discuss these issues with you personally and confidentially.
Kevin Ryan is an experienced bankruptcy lawyer who will be there for you. Call us to set up a free telephone or office consultation.

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