Debt Settlement
Debt Settlement: Negotiate Your Debt for Less
Debt settlement can be a powerful alternative to bankruptcy for individuals seeking to resolve unsecured debts. Our firm utilizes experienced negotiation to help you settle debts—sometimes for significantly less than what you owe.
How Our Debt Settlement Services Work
- Negotiation Expertise: We work directly with your creditors to reduce outstanding balances, protecting your interests every step of the way.
- Flexible Solutions: Settlements can often be structured as a lump sum or via an affordable payment plan tailored to your financial circumstances.
- Bankruptcy Alternative: For clients who don't wish to declare bankruptcy or are ineligible, settlement offers a path forward outside of court.
Who Might Benefit from Debt Settlement?
- People with primarily unsecured debts such as credit cards, medical bills, or personal loans.
- Clients facing potential lawsuits or collections who want to avoid bankruptcy proceedings.
- Anyone who is able to set aside funds for potential settlement offers.
Every financial situation is unique. During your consultation, our attorneys will help you understand your full range of debt relief options and design a strategy just for you.
Important Tax Consequence: When a portion of your debt is forgiven through settlement, the IRS will consider the forgiven amount as taxable income.
For example, if you owe $100,000 and settle for $50,000, the $50,000 forgiven by creditors will be reported to you and the IRS via a Form 1099. You will be required to pay income tax on this amount.
Because of this tax liability, we recommend debt settlement only to clients who have sufficient financial losses or tax deductions to offset the potential tax burden. Our attorneys will help you thoroughly evaluate whether this solution is financially prudent for your specific situation.
For example, if you owe $100,000 and settle for $50,000, the $50,000 forgiven by creditors will be reported to you and the IRS via a Form 1099. You will be required to pay income tax on this amount.
Because of this tax liability, we recommend debt settlement only to clients who have sufficient financial losses or tax deductions to offset the potential tax burden. Our attorneys will help you thoroughly evaluate whether this solution is financially prudent for your specific situation.
Why Choose Totaro & Shanahan for Debt Settlement?
- Over 20 years of experience negotiating debt settlements with creditors and collection agencies.
- Personalized service—work directly with attorneys, not call centers.
- Honest advice about both the benefits and risks, including potential tax consequences.
Explore Your Options with a Free Consultation
Our legal team will review your situation, explain all alternatives, and help you chart a path to financial relief—with full clarity about possible outcomes. Schedule your free consultation today to find out if debt settlement is right for you.
Take the First Step Toward Financial Freedom
Schedule your free, no-obligation consultation today. We'll help you understand your options and create a plan to overcome your debt challenges.