Until you consult with a debt professional, don’t make any deals with any financial institution. Whether you have credit card debts, medical debts or any other kind of debt, it is imperative that you speak with a knowledgeable debt management attorney who understands the potential tax issues involved in bankruptcy and/or debt relief. The money you think you’re saving by doing the negotiation on your own could come back to haunt you when the time arrives to file your taxes.
“When you work out a deal with a creditor, they are not going to warn you about any negative implications of the deal. They just want their money.”
Knowledgeable NJ debt relief lawyer Joel Spivack cautions against trying to work out a debt resolution on your own. Far too many people think it’s a smart move to negotiate with creditors in an effort to cut back the debt by making a deal that pays the company short of what is owed. However, Mr. Spivack said: “there is a federal tax implication on what you aren’t paying in a settlement.” Do not make the mistake of ignoring your potential tax liability on cancelled debt.
Abo and Company, LLC, a New Jersey firm specializing in tax planning and compliance, recently recognized Cherry Hill NJ bankruptcy attorney Joel R. Spivack for helping clients get the tax advice they need before it’s too late.
Experienced Bankruptcy Attorney Joel Spivack Can Help You Arrange a Favorable Debt Settlement
You may want to talk to an accountant at some point, but you definitely should speak to a consumer debt lawyer like Joel Spivack prior to making any deal with your creditors. Mr. Spivack is an experienced NJ bankruptcy and debt management attorney who knows how to help you explore alternatives and avoid serious tax implications.
If you are looking to negotiate a debt settlement with a creditor or are otherwise seeking debt relief, Joel R. Spivack is an experienced bankruptcy and debt management attorney who can help you get back on the right financial path. Contact Mr. Spivack today to schedule a free consultation.