New York Debt Relief
Are you looking for help to finally tackle and free yourself of your debt? Curadebt has been helping New Yorkers get out from underneath their debt since 2000 and is a licensed, bonded, and BSI certified debt relief company.
Call CuraDebt for a free and understanding debt relief consultation at 1-866-712-3389, or have a knowledgeable and compassionate debt relief expert call you.
- New York Debt Relief
- New York Debt Statistics
- Successful Debt Relief in New York
- New York and Federal Laws & Protections for Consumer Debt
- Consider Other Debt Relief Options in New York
- New York Debt Settlement Frequently Asked Questions (FAQ)
- Why You Can Trust CuraDebt
- Get Debt Relief with Debt Settlement in New York
New York Debt Statistics
If you live in New York and have debt, you are certainly not alone. The average New Yorker carries $25,564 in car loans, $7,600 on credit cards, $611,880 in mortgages, and $41,268 in student loans.
Accumulating and carrying debt is common and is something most New Yorkers have learned to live with. However, whether or not you will get out from under your debt will depend on you taking action and not leaving this ongoing problem for another day.
Not sure where to start? CuraDebt has provided financial relief to thousands of New Yorkers over 22 years, and each New Yorker we have helped began their debt relief journey by calling 1-866-712-3389 for a free and compassionate consultation.
Return to top
Successful Debt Relief in New York
What is Debt Settlement and How Does it Work?
Debt settlement is when you agree with each of your lenders to reduce the principal debt amount owed. On the other hand, debt consolidation will only reduce your overall interest rate, whereas debt settlement is an agreement with your lenders to reduce your debt principle to a more manageable level. The benefit of settlement agreements for lenders is that they will receive an agreed payment amount for the outstanding debt, which is more than they will receive if the borrower can no longer make any payments. When you begin the debt settlement process, you will place an agreed-to monthly amount into a special purpose account to pay the ultimate settlement agreement with your lenders.
CuraDebt Manages the Entire Debt Settlement Process
CuraDebt’s debt settlement process is designed to save you as much money as possible in the shortest amount of time. Our highly experienced negotiators will begin negotiating with your creditors to find a settlement amount that you and your lenders can agree to. There is no upfront cost; you only pay a fee when one of your debt accounts is resolved, and you accept the agreed resolution.
New York and Federal Laws & Protections for Consumer Debt
If you live in New York, you don’t need someone to tell you New York has a high cost of living because you live it every day. The high cost of living in New York is one factor that sees New Yorkers gradually incur debt over time that can become difficult to manage. However, the New York and Federal governments have laws to protect you from debt collectors and provide debt relief tools.
The Fair Debt Collection Practices Act (FDCPA) is a federal law that prevents debt collectors from using deceptive and unfair tactics and applies to debt collection agencies. In addition, the New York State statute of limitations only allows creditors three years to use the court system to collect outstanding debts. After three years, creditors can still attempt to collect the debt using other means, and the consumer still owes the outstanding debt.
What types of tax debt can be included in a Tax Debt Relief program in New York?
- State taxes
- Federal taxes
- Payroll tax
- Tax interest and penalties
- Tax assessments from audits
- Innocent spouse debts
- Other state or federal tax debts
What types of business debt can be included in a Business Debt Relief program in New York?
- Vendors and suppliers
- Lines of credit
- Merchant cash advances
- Business leases
- Other unsecured business loans
Unsecured debts can be included in a Debt Settlement Program in New York and may consist of debt from:
- Credit cards
- Personal lines of credit
- Private student loans
- Medical bills
- Other unsecured debt
What types of debt can’t be included in a New York Debt Settlement Program?
Secured debts are debts that have goods or assets provided as collateral if the borrower doesn’t make their debt payment, and may include:
- Home mortgages
- Vehicle loans
- Equipment loans
- Secured credit cards
Note: The listed debts are not a comprehensive list of debts that can be included in a settlement program, tax relief program, or business relief program. It is important to check with a debt counselor first.
Popular Cities in New York for Debt Settlement:
- New York City (NYC) Debt Settlement
- Hempstead Debt Settlement
- Brookhaven Debt Settlement
- Islip Debt Settlement
- Oyster Bay Debt Settlement
- Buffalo Debt Settlement
- North Hempstead Debt Settlement
- Babylon Debt Settlement
- Rochester Debt Settlement
- Yonkers Debt Settlement
- Huntington Debt Settlement
- Ramapo Debt Settlement
- Syracuse Debt Settlement
Note: All cities and municipalities are serviced by CuraDebt in New York and are not limited to those cities listed above.
Consider Other Debt Relief Options in New York
When determining whether a debt settlement agreement in New York is right for you, it’s essential to determine what other options are available for you. We provide a high-level summary of other debt-relief options below.
1. Continue on the path of minimum monthly payments
We’ve been taught to always make monthly payments to our lenders and eventually pay back our outstanding debts, but what if you can only make the minimum payments each month? While you’re doing the right thing by keeping up with your payments, this strategy will take years of minimum monthly payments to pay off the debt and accrued interest, or you may never pay it back at all. In addition, by only making minimum monthly payments on your credit cards with high-interest rates, everything you pay for using it becomes way more expensive, with interest compounding each year. If you can never get ahead of your debt, it may not make sense to continue on the same path of only making minimum payments.
2. Balance Transfers
Credit card companies will offer low introductory interest rates on new credit cards that encourage users to transfer the balance of their high-interest credit cards to a new credit card with a low-interest rate. The problem with this approach is that the low introductory interest rate lasts only up to six months, and then you are in the same position you were in before. This will likely affect your credit rating as your average debt history on each credit product you own will decrease. Also, if you face some sort of hardship after your balance transfer, adding this debt to a debt settlement agreement will be difficult as it’s considered new debt, even though it’s old debt moved to a different credit card. The worst case scenario is it may appear you have committed fraud if you are looking for a debt settlement agreement after completing a balance transfer.
3. New York Debt Management Program
A Debt Management Program is where you make a single monthly payment to a credit counseling agency. That agency then distributes agreed payments to your creditors on your behalf. With this form of debt relief, you will still end up paying the total amount of your debts. Ideally, the credit counseling agency will have your lenders agree to reduced interest rates, reducing the time it will take to pay off your debts. A Debt Management Plan in New York is designed to be paid within 3 to 5 years, and you must agree not to take on additional credit during this period. The drawback to debt management programs is the agreed reduced interest rates with your lenders are often not much less than your current interest rates, and you have to pay a monthly fee to the counseling agency. Also, this debt relief option will show on your credit report that a counseling agency is making debt payments on your behalf, and it will look like you’re either bankrupt or close to bankruptcy.
4. New York Hardship Programs
Debtors can reach out to their creditors to request interest relief on their debt due to hardships like injury, divorce, loss of income, and so on. The problem with this debt relief option is that creditors will only offer to reduce your interest rate and monthly payment but will not reduce your principal. This will make your debt situation worse as it will continue to grow during the relief period.
5. New York Debt Consolidation Loan
A debt consolidation loan helps you manage your debt by consolidating your outstanding debts into one loan with a lower interest. For example, suppose all your outstanding loans are consolidated under one loan. In that case, you will only make one monthly payment that is lower than your current combined payments or is the same, resulting in you paying off your consolidated loan sooner. A drawback with debt consolidation loans is that you initially put yourself in more debt. It may also reduce your credit score if you cancel the credit accounts after you transfer their balances. A lower credit score will increase your cost of borrowing and how lenders will view and treat you.
6. New York Secured Debt Consolidation Loan
There are options to get a secured debt consolidation loan where the lenders can take the secured asset if the loan isn’t paid back. The trouble with this type of debt consolidation loan is that borrowers can lose their house, vehicle, or anything else they pledged as security for the secured consolidation loan.
7. Debt Settlement or Debt Negotiation in New York
Debt settlement is when you agree with each of your lenders to reduce the principal debt amount you owe to a more manageable amount. To ensure you receive the lowest debt settlement with your lenders, work with an expert debt relief company like CuraDebt to negotiate with your lenders on your behalf.
8. Declaring Bankruptcy in New York – Last Resort
Bankruptcy is an option of last resort for people who can’t meet their debt obligations. A declaration of bankruptcy will stop the debt collection process, and you will no longer owe some or all of your unsecured debt. Declaring bankruptcy can be an emotional process and you can be asked in future job interviews if you have ever declared bankruptcy, which may reduce your chances of getting the jobs you’re interviewing for. Also, many do not qualify which results in debts being excluded.
9. Merchant Cash Advance Loan
A Merchant Cash Advance (MCA) loan is secured against a business’s receivables. The trouble with this option is if the business doesn’t make payments on the MCA loan, the lender will send letters to the business’s customers asking them to pay them directly and not to the business. This situation has resulted in many companies being forced into bankruptcy.
New York Debt Settlement Frequently Asked Questions (FAQ)
How long can you legally be chased for debt in New York?
The New York State statute of limitations for creditors to collect outstanding debts has recently been reduced from 6 to 3 years.
How does debt settlement affect my income tax in New York?
The forgiven portion of your debt agreed to in the settlement process is considered taxable income by the IRS. However, the forgiven debt may be excluded as income under the insolvency exclusion to the extent that the taxpayer is insolvent.
A taxpayer is insolvent when his or her total liabilities exceed his or her total assets. The forgiven debt may be excluded as income under the “insolvency” exclusion. Normally, a taxpayer is not required to include forgiven debts in income to the extent that the taxpayer is insolvent. The forgiven debt may also qualify for exclusion if the debt was discharged in a Title 11 bankruptcy proceeding or if the debt is qualified farm indebtedness or qualified real property business indebtedness. If you believe you qualify for any of these exceptions, see the instructions for Form 982.
Do you have a legitimate financial hardship condition?
Most of our clients face financial hardship caused by many situations such as loss of job, income, medical conditions and bills, divorce, and so on. If you are in a financial hardship position, Debt Settlement Programs for residents in New York are an effective and viable method to manage your debts and avoid bankruptcy.
Why You Can Trust CuraDebt
CuraDebt’s debt settlement process is designed to save you as much money as possible in a short period using our proprietary system that has been perfected over the past 22 years. Our highly experienced negotiators will begin to negotiate with your creditors to find a settlement amount they and you can agree to. There is no upfront cost; you only pay a fee when one of your debt accounts is resolved, and you accept the agreed resolution.
CauraDebt has terrific online reviews from many of the clients we have helped over 22 years: one thousand five-star reviews on CustomerLobby.com; 260 five-star reviews on ShopperApproved.com; and, has been rated as the #1 or in the top two in Top Consumer Reviews in “Best Debt Relief Companies” for over 10 years. For more information on why you can trust CuraDebt, check out our What Sets CuraDebt Relief Apart.
Get Debt Relief with Debt Settlement in New York
Call CuraDebt for a free and understanding debt relief consultation at 1-866-712-3389, or have a knowledgeable and compassionate debt relief expert call you.