Lanak & Hanna PC: Debt Settlement Strategies and Credit Repair
If Lanak & Hanna PC has contacted you regarding a debt collection matter, understanding your rights and exploring effective resolution strategies is essential. This guide covers debt settlement vs. debt management and how to remove negative items from your credit report after settling a debt.
📍 Contact Information for Lanak & Hanna PC
- Address: 625 The City Drive S, Suite 190, Orange, CA 92868
- Phone: (714) 620-2350
💳 Debt Settlement vs. Debt Management: Choosing the Best Strategy
If you’re struggling with debt, you may be considering debt settlement or a debt management plan (DMP). Each has its pros and cons:
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Debt Settlement
- Negotiates a lower payoff amount – Reduces the total balance owed.
- Can negatively impact credit – Settled accounts may be marked as “paid for less than owed.”
- May result in tax consequences – The IRS may treat forgiven debt as taxable income.
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Debt Management Plan (DMP)
- Keeps accounts in good standing – Payments go through a credit counseling agency.
- May lower interest rates – Many creditors offer reduced rates for DMPs.
- Takes longer to complete – Typically 3-5 years to pay off debts.
Choosing the right path depends on your financial situation and credit goals.
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📝 How to Remove Negative Items from Your Credit Report After Debt Settlement
After settling a debt, you may notice negative marks on your credit report. Here’s how to improve your credit score post-settlement:
- Request a “Paid in Full” Status – Some creditors will update the status to “paid in full” instead of “settled.”
- Dispute Errors – If a debt was settled but still shows as unpaid, file a credit report dispute with the bureaus.
- Send a Goodwill Letter – Ask the creditor to remove the negative mark as a gesture of goodwill.
- Monitor Your Credit – Use a credit monitoring service to ensure accurate reporting.
- Build Positive Credit – Open new credit accounts responsibly and make on-time payments to improve your score.
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📞 Get Legal Help for Debt Collection Issues
If Lanak & Hanna PC is pursuing you for a debt, you have legal rights to protect yourself. Whether you’re dealing with aggressive collection tactics or need help with debt settlement options, Consumer Rights Law Firm PLLC can assist you.
- Learn how to handle debt collectors effectively.
- Know your options if sued – Read about what to do next.
For professional legal assistance, contact Consumer Rights Law Firm PLLC for a free consultation at this link.