Many people are afraid of creditors. Because of that, they don’t answer letters or phone calls. Instead of hiding from creditors, it is time to learn how to deal with them. Doing so will make life much easier while you decide if you want to file Chapter 7 or Chapter 13 bankruptcy.
Don’t Be Afraid to Ask Questions
Some creditors use threats to scare people into paying. If a creditor threatens you with a lawsuit or repossession, ask for specific details. For instance, ask the creditor when the company will start legal proceedings and when you can expect to be notified. Most creditors will falter as soon as you ask for specifics.
Know Your Rights
Creditors have the right to contact you. They do not have the right to harass you. They can only talk to your boss to confirm employment, and they can’t call you at all hours of the day and night. If the creditor is engaging in harassing behavior, let him know that he is breaking the law. If he does not take you seriously, report him or contact a bankruptcy lawyer in Surprise, AZ to handle it for you.
Attempt to Lower or Suspend Payments
If you have a hardship, explain it to your creditors. Ask them if you can temporarily lower or suspend your payments until you remedy your problem. Keep in mind that your creditors are busy so they don’t want to listen to you talk about your hardship for twenty minutes. Summarize your issue in two or three sentences. After you summarize your problem, mention that you will have to file Chapter 7 or Chapter 13 bankruptcy if you cannot get on a payment plan.
Get Agreements in Writing
If you come to an agreement with your creditors, get it in writing. A failure to do so may cause the creditor to renege on the agreement. If the creditor will not send it in writing, it could be beneficial for you to contact a bankruptcy lawyer in Surprise, AZ. That creditor is not taking you seriously, and you may choose to take additional action, such as filing for Chapter 13 bankruptcy.
Talking to your creditor is the first step. If that does not work, it could be time to file Chapter 7 or Chapter 13 bankruptcy. A bankruptcy lawyer in Surprise, AZ can help you with the paperwork. First, though, attempt to negotiate with your creditors.
This blog is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this blog. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.