Debt Negotiation Lawyers Serving Southern California

Many individuals are struggling with credit card debt, student loans, foreclosures, second mortgages and medical debt.

In a rush to eliminate debt, debtors often find themselves tempted to reach out to lenders and creditors to come to a debt settlement agreement. But what most debtors fail to acknowledge is that creditors and lenders have a team of analysts and lawyers working for them. These lawyers and analysts have experience dealing with thousands of debt collection matters and work to find the best outcome for creditors and lenders.

To avoid the hassle of dealing with analysts and lawyers, debtors should hire a team of experienced bankruptcy and debt settlement attorneys. These attorneys will provide advice on options such as bankruptcy and debt negotiations to relieve their current debt obligations and maintain a debtor’s financial health.

Call us now: (855) 219-3333


Debt Settlements

A debt settlement involves negotiating directly with creditors and lenders to agree to an acceptable payment less than original amount owed by the debtor. It is beneficial for not only debtors but lenders and creditors as well to participate in debt settlements. Without negotiations, debtors may be unable to pay their bills and this may lead to bankruptcy, in which some cases creditors may not receive anything.

Debt negotiations may also prevent high litigation costs. When debt begins to accumulate, debtors are unable to make payments and may become in default. Debtors may face penalty fees, litigation costs, repossession actions and foreclosure. Debtors may also be exposed to tax consequences. An experienced attorney will be knowledgeable of the fact that any amount of a debt which if forgiven is considered by the IRS to be taxable income. This means debtors have to pay taxes on the amount which was discounted from the debt. Debts discharged in bankruptcy, on the other hand, are not treated as taxable income, so there is no tax liability on any amount forgiven in bankruptcy.

It is important to note that debtors may have multiple creditors and lenders. Debt settlements must be negotiated with each lender and creditor individually, and there are no guarantees payments may be deferred due to a debtor’s obligations to other creditors. Each debtor will require either modified payments or a lump sum payment. For this reason, it is vital to obtain legal assistance. Experienced attorneys can help organize debt obligations and create negotiation plans to the benefit of the debtor.



Debt settlement is not the only option to improve a debtor’s financial situation. Debtors should also consider bankruptcy as a viable option. Debtors may be able to reduce their debt by the same amount or greater in bankruptcy, or even have the debt discharged altogether. While there are several factors to determine if filing for bankruptcy is the best option it is important to note the difference between the types of bankruptcy.

Chapter 7 is the most common bankruptcy option. Chapter 7 allows for low-income debtors to receive a “fresh start” by allowing them to wipe out or eliminate most types of unsecured debts, such as credit card debt, medical debt, utility bills, and taxes for specific ages. Chapter 7 also involves the liquidation of assets (if any) to pay off creditors as much as possible.

Chapter 13 is known as “Reorganization Bankruptcy” in which through three to five-year plan debtors pay back their credits. Chapter 13 is utilized by homeowners who have fallen behind on their mortgage payments but currently have enough income to make mortgage payments.

Under both Chapter 7 and Chapter 13 debts such as child support, spousal support, recent taxes, student loan debt, tort claims, criminal fines, and contractual purchases that involve land or automobiles are not dischargeable in bankruptcy.

Chapter 11 is also known as “Reorganization” bankruptcy. Chapter 11 Bankruptcy is filed by individuals and businesses with over a million dollars in debt. Chapter 11 Bankruptcy is typically very advantageous because debtors can keep their assets which allows businesses to remain open as their debts are reorganized so creditors can be paid off.

The Federal Fair Debt Collection Practices Act and California’s Rosenthal Fair Debt Collection Practices Act protects debtors from abusive, unfair, or deceptive practices by debt collection agencies. See 15 U.S.C. §§ 1692-1692p; Cal. Civ. Code §§ 1788.

California Rosenthal Fair Debt Collection Practices Act protects from harassment and false misrepresentations from collection agencies, original creditors and repossession agencies. California Rosenthal Act incorporated substantive provisions of the FDCPA to expand protection for California residents. Specifically, the California Rosenthal Fair Debt Collection Practices Act expansive definition of “debt collector” includes anyone “who, in the ordinary course of business, regularly, on behalf of himself or herself or others, engages in debt collection”. Cal. Civ. Code §§ 1788.

Although California debtors have protection under both the FDPCA and the California Rosenthal Fair Debt Collection Practices Act, it is important to know both laws do not cover all debts. The FDCPA and the California Rosenthal Fair Debt Collection Practices Act limit harassment protection to personal debt, family debt, or household purposes (consumer debt), alimony, child support, criminal fines, and tort claims. This also extends to business and commercial debts, even those taken as personal loans.

Additionally, The Federal Fair Debt Collection Practices Act and California’s Rosenthal Fair Debt Collection Practices Act allows for debtors to sue collectors, creditors, and collection agencies for continued harassment such as verbal threats, unwarranted communications, and additional violations under said laws.

An experienced attorney can help protect debtors from harassment and aggressive behavior by file suits under both laws against third party lenders, original creditors, collection agencies, and other individuals.

Call us now: (855) 219-0506 or visit our Bankruptcy page.



Due to the complex nature of bankruptcy, it is vital to obtain the services of experienced bankruptcy attorneys to find the best outcomes. Failing to do can result in foreclosure, wage garnishments, second liens, and fraudulent liens. Here at Gomez & Simone, APLC, our attorneys are experienced in protecting and defending individuals from these matters. We take pride in aggressively protecting our clients through the bankruptcy process. Whether it’s a simple personal chapter 7 bankruptcy, a chapter 13 bankruptcy to stop a foreclosure, or a complex chapter 11 corporate reorganization, our staff takes the time to patiently explain each issue with you and make sure you understand everything we are doing.

Our attorneys at Gomez & Simone, APLC, will not only assess if bankruptcy is an option for you but will seek other avenues such as debt settlements. Our knowledgeable attorneys have years of experience in debt negotiations with lenders and creditors. Additionally, our attorneys will work hard to ensure debt collection agencies and creditors remain compliant under applicable federal and state laws. At Gomez & Simone, APLC, our goal to ensure that you are able to maintain your overall financial health. As a reputable law firm that handles bankruptcies and debt settlements, Gomez & Simone, APLC, can offer services for a small flat fee and will charge a percentage of the amount negotiated on your behalf.

Call us now: (855) 219-3333

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A Team of Highly Competent Real Estate Los Angeles Attorneys At Competitive Rates

Gomez & Simone was established as a Foreclosure Defense Law Firm after the mortgage meltdown in 2008. Since then we have developed a team of attorneys with experience in all areas of the law related to property owners, with experience in contracts, purchase/sales, quiet title litigation, partition actions, bankruptcy, eviction law, probate, divorce, estate planning and personal injury cases. One team with experience in all related areas of law that your property touches upon or could be affected by. We are serious about getting our clients the results the deserve.

From Eviction Court to Probate Court to Federal Court to Bankruptcy Court to Appellate Court, there is no challenge that our experienced legal team is not ready and able to meet. We have handled and won thousands of cases, have obtained millions of dollars in judgments and settlements for our clients and have been cited by judges and other attorneys throughout California. If you want a team of lawyers that are obsessed about getting results while providing great service give us a call today 855-219-3333.

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