December 7th, 2010
Debt settlement sounds great and is a great tact to reduce and pay off debt. However, going through a debt settlement agency might not be in your best interest.
Primarily, I do not recommend debt settlement or debt settlement agencies. One, debt settlement will not resolve every account you have and two, attempting to settle a debt with creditors will not protect you from judgment or lawsuits.
If you are delinquent on your obligations and have failed to make your minimum payment, your lender/creditor can sue you and until you make your required or agreed payments, you can still be taken to court.
Should you be relentless in your pursuit of debt settlement, it is in your best interest to contact your creditors your self and attempt to resolve the debt with them directly.
Making payments to a third party and having them negotiate the amounts for your (1) does not protect you from suit and (2) makes it seem like you have funds but refuse to pay your creditors. Also, while they are suppose to been protecting your interests, debt settlement companies are not bound by the same obligations professionals are and might be out for their financial interests over your goals of reducing your debt. So, it is a lot more productive to do the settlement and negotiations directly with your creditor.
On another side, bankruptcy supersedes debt settlement since bankruptcy eliminates debt rather than settles it. Further, bankruptcy provides specific laws and rules that protect individuals which are not present in a debt settlement.
So while debt settlement can seem more lucrative with shorter ramifications than bankruptcy, you will only find debt relief/forgiveness and protection from legal proceedings (judgments, garnishments, foreclosures, collections attempts) in bankruptcy
Posted in Debt Settlement, consultation, creditor, quick tip | 84 Comments »
December 6th, 2010
Everyone is eligible for bankruptcy, but whether its in your best interests or not is waiting to be seen. So ideally, go seek advice as soon as possible. Many attorneys provide a free consultation. This gives you an opportunity to get some questions answer and understand what your legal options are.
With this knowledge, you will be able to act more prudently in regards to your finances. Many times potential clients wait till the last possible hour to seek bankruptcy advice since they see it as a last resort.
Often times, its your only resort or even your best resort so knowing that and acting on it sooner will save you interest, time, headaches, assets and ultimate money!
Posted in consultation, quick tip | 3 Comments »
November 19th, 2010
As a general rule, don’t bank where you borrow.
Most banks have “setoff” provisions within their checking and savings agreement. This provision allows for banks to “setoff” or otherwise remove funds from your checking or savings account to pay off balances on other accounts you might have with the bank such as credit cards, car payments or mortgage.
As such, to avoid “setoff”s on your account, your bank institution and the institution(s) you use to borrow should not be the same. This keeps your money safe and your accounts balanced.
Omid Moezzi, Esq.
Posted in bank, creditor, quick tip, setoff | 17 Comments »
November 19th, 2010
Welcome to the New Loom Legal’s Bankruptcy Website!
This website has been revamped and released to provide information for individuals about bankruptcy, resources through documents and links to other bankruptcy relevant sites, and also information from our attorney Omid Moezzi, Esq., in regards to bankruptcy benefits, laws and other important tools in protecting your financial future.
Understand that bankruptcy is a legal and constitutional right to all individuals in the United States which is provided in Article I Section 8 of the U. S. Constitution. Through elimination of debt, we are able to afford a fresh start to honest and unfortunate debtors.
Stay tuned for more information.
Omid Moezzi
Posted in Uncategorized | 3 Comments »
