Loan Workout in Minnesota

If you are thinking about settling your debt in Minnesota it is important to keep tax consequences in mind when you are settling the debt. In most cases you are responsible for the phantom gains from debt settlement income. A good example of this is if you owe $20,000 on a credit card debt and you settle the debt for $10,000 the creditor can and probably will send you a 1099 form for $10,000. This means that you could owe additional money for the settled debt. The other thing to keep in mind when are settling debt is that you also should look at bankruptcy to see if one option is cheaper than the other.
If you decide to settle debt it should be a business decision and it should be the cheaper alternative to bankruptcy. The nice thing about debt settlement as opposed to bankruptcy is that you do not have a trustee looking over your property and debt settlement is not public. If you are having issues with debt give our office a call at 952-294-0144.