Two Ways to Reduce or Eliminate Crushing Debt With Lawyer Nicholas Hicks

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Nicholas Hicks Two Ways to Reduce or Eliminate Crushing Debt With Lawyer Nicholas Hicks Nicholas Hicks Two Ways to Reduce or Eliminate Crushing Debt With Lawyer Nicholas Hicks

Lawyer Nicholas Hicks explains the difference between bankruptcy and debt settlement in New York.

People can find themselves in crushing debt for several reasons. Family emergencies, medical bills, or unemployment can take a toll on a person’s finances in a very short amount of time. In other instances, an accumulation of debt can be the result of poor spending habits and lack of budgeting. If you find yourself in this situation, Lawyer Nicholas Hicks of New York explains debt relief options to consider.

Bankruptcy and debt settlement are two common ways to clear debt that cannot be repaid. Lawyer Nicholas Hicks notes that these options are only to be considered when all other avenues have been exhausted. Although these options can reduce or eliminate debt, there are other consequences to consider.


In New York, Chapter 7 bankruptcy eliminates most unsecured debt, no matter how much the amount. These include debt from medical bills, credit cards and personal unsecured loans. Lawyer Nicholas Hicks of New York notes that a disadvantage of Chapter 7 bankruptcy is the possibility of surrendering certain non-exempt assets as a trade-off to eliminating debt. The Chapter 7 option take approximately 4 months to complete.

Unlike Chapter 7, Chapter 13 bankruptcy allows you to keep all of your assets. However, you have to agree to pay back some, if not all, of the debt over a 36-60 month period. Lawyer Nicholas Hicks explains that Chapter 13 also helps some people get caught up on mortgage arrears and in some instances can eliminate or reduce second mortgages/home improvement loans. Lawyer Nicholas Hicks notes that if you default on the Chapter 13 repayment plan, your case can be dismissed, which could result in loss of monies paid and creditors may resume collection and foreclosure activity against you.

Debt Settlement

In some cases, it is better to work with a lender to negotiate a debt settlement. Once you can prove to the lender that there are no means to repay the debt, they may accept a lump sum less than the principal which is owed or set up reduced payments with you. Lawyer Nicholas Hicks of New York explains that it is common to settle for around 35 to 75 percent of the total balance. This choice may have less of a negative impact on your credit rating compared to bankruptcy. Attorney Nicholas Hicks further explains that you should also request that the lender report a favorable payment history with the various credit reporting agencies once you have completed your end of the agreement.

Lawyer Nicholas Hicks recommends contacting a debt relief attorney for help with obtaining financial freedom from debt. Learn more about debt relief from Lawyer Nicholas Hicks on his YouTube page at

About Nicholas Hicks:

Starting from an early age, Nicholas Hicks was rescued from NYC foster care at the age of 5 years old. Nicholas Hicks attended both public and private school where he eventually graduated from ECC, UB & UB Law School. Nicholas Hicks has been in private law practice in New York for over 20 years.