DEBT RESOLUTION

Non-Formal Debt Resolution, also known as Non-Formal (Chapter 13), is an aggressive approach to the reduction of personal debt. Debt resolution is appropriate for persons who have an unmanageable amount of debt, or who are near bankrupt. Randy Malone utilizes the support services of Morgan Drexen, Inc. to provide debt resolution through effective legal representation and negotiation with creditors.

Randy Malone strives to reach resolutions in which consumers pay less than the total amount owed, but still takes responsibility for paying as much as they can realistically manage. Creditors are motivated to resolve the debt for reduced amounts when a consumer is under serious financial strain and may choose to file bankruptcy. Creditors wish to collect as much money as the creditor can because if a consumer files for bankruptcy there is a risk that the creditor may receive nothing.

While Non-Formal may be advantageous to both debtors and creditors, there can be some drawbacks. The IRS considers a forgiven debt to be taxable income and requires that taxes be paid on amounts saved through resolution. Randy Malone can advise you on how to apply for a special hardship with the IRS. Furthermore, because creditors are not paid during the process of Non-Formal resolution, the Consumer’s credit report will show delinquent payments until the debts are finally paid. Once a debt is fully paid, the creditor will report to the credit bureaus that the debt has been “paid,” “settled,” or “settled for less than full amount.”

Randy Malone recommends that financially troubled consumers enroll in programs for financial education in order to obtain the skills to live life without the stress of debilitating debts.