Debt Disputes & Negotiations

By Robert Jacovetti

New York Debt Lawyer Advocates for Clients With Debts in NYC

Being buried under a mountain of debt can be overwhelmingly frustrating. You toss and turn at night, obsessed with how you are going to climb out of debt. Often, people turn to Chapter 7 or Chapter 13 bankruptcy as a way out. However, bankruptcy is not the only option. When you have debt disputes, or cannot make minimum payments on credit cards, medical bills or unsecured loans in NYC, the other boroughs or Long Island, debt mitigation may be the answer.

Debt mitigation requires you to work directly with creditors and debt collectors to validate the debt, and if need be, dispute the debt. Mr. Jacovetti has helped thousands of clients eliminate debt. In some cases, the creditor cannot validate the debt and will simply discharge it. In other cases, a creditor may agree to a lesser amount and a more manageable monthly payment

If you are in debt contact Bob Jacovetti. He knows debt relief law and how to work with your creditors. Allow him to put his many years of experience to work for you, whether you live in New York City, Rockville Centre or anywhere throughout New York State. He can talk to you about bankruptcy as well as alternatives to bankruptcy.  Schedule a free phone consultation with Mr. Jacovetti today. He has offices in Manhattan and Mineola, NY.

New Yorkers Face Different Types of Debt: Secured & Unsecured

Secured debts attach to an asset, which a creditor can take back if you do not make payments. For example, a car loan lender can repossess your vehicle. Secured debt creditors are not likely to negotiate. They expect payment on time or they will just take back the collateral.

Unsecured debts do not attach to assets. Therefore, creditors must find another way to recover missed payments. These creditors are likely to negotiate because they know if you file bankruptcy they may get nothing. Take careful notes detailing every conversation you have with your creditors.

Experienced debt lawyer Bob Jacovetti will be by your side as you decide how to manage your out-of-control debt. Whether you decide on a reduced lump sum payment or a debt installment plan, he will help you make sure you can truly afford it. He will be your voice with your creditors and he has many years of experience in getting creditors to listen. He knows what creditors will accept and what they won’t accept.

Mr. Jacovetti can explain all your options to you. You may be able to get out from that mountain of debt easier and faster than you think. Rely on an experienced and skilled Long Island debt attorney to help you and your family.

NY Debt Consolidation Companies May Make it Worse

While some people decide to file for bankruptcy protection in Manhattan, Mineola and throughout NY and Long Island may be the best solution for them, others explore debt management and debt settlement. There are many companies who advertise on the radio and on TV; they make the idea of consolidating your debt into one lump payment attractive. However, oftentimes, those companies are the ones making the money while your debt grows. They are for-profit businesses; they exist to make money. You need a legal professional who knows NY bankruptcy and debt collection law to help you find a permanent solution to your debt crisis.

Do Settlements Have Tax Ramifications in New York?

Yes. Not only can debt settlements negatively impact your credit, but you may also be left with a tax bill. Creditors report most discharged debts to all of the credit reporting agencies. They remain on file until removed. Debt settlement can also have significant tax ramifications. When a creditor agrees on a debt reduction, the IRS considers the forgiven debt to be income according to IRS Code section 108. As a result, you must pay taxes on the amount. With some exceptions, your creditor will issue you a form 1099-C and file a copy with the IRS.

When a debt is discharged through bankruptcy, the discharged amount is not considered to be income. Additionally, if you are financially solvent just prior to debt forgiveness, you can file Form 982 “Reduction of Tax Attributes Due to Discharge of Debt.” Talk to Mr. Jacovetti, he can refer you to a tax expert to address these details of debt discharge.

NYC Lawyer Guides Clients through Consumer Debt Disputes

When you are mired in debt, it is important to know you have options. There is a way out of your financial stress. Sometimes, the worst happens to good, honest people in Westbury, Levittown, Queens and Brooklyn, NY. Bob Jacovetti is a compassionate, skilled debt negotiation lawyer who sincerely wants to help debtors gain control of their financial lives and stop harassment from creditors.

Contact the Law Office of Bob Jacovetti today for a free phone consultation with an experienced attorney. Tired of sleepless nights worrying about debt? We can help you and your family.