Many factors can put you into debt. Before you know it, you might be drowning in it. Whether your debt is the result of poor financial habits such as overspending or an inability to earn enough, this issue is more common than you might think. You could also get into debt because of a bad economy — which is a scary reality for many Americans grappling with COVID-19 income loss. Through no fault of your own, you might struggle to keep your business open or grapple with emergency bills that sweep away your savings. The reasons why you get into debt are not as important as figuring the way out of debt — lest it gets worse and you sink further into it.
Before your creditors seek other means of debt collection, you should contact a debt negotiation lawyer to help you negotiate a way out with your creditors. By contacting a debt negotiation attorney, you have a better shot of coming to terms with your creditors so that you can seek favorable repayment terms that your current income can sustain.
You should hire a debt negotiation lawyer as soon as you realize it is not feasible for you to pay your debts in their current terms, as your income cannot support debt repayment. Your debt elimination lawyer will contact your creditors on your behalf to seek flexible ways you can repay the debt. Mostly, debt negotiations will work smoothly when you have a small but still significant amount of money, which you can use to pay off your creditors (even though it is short of what you owed). Debt negotiation attorneys combine their legal knowledge and their finance understanding to negotiate a good deal with the creditors.
For instance, if you owed a company $2,000, your debt attorney may negotiate it to a lump sum payment of $1,000. That way, you clear the debt in full and all the debt repayment terms you had initially agreed cease to hold water. Your creditors must also be willing to negotiate with your attorney; otherwise, the negotiations will not pass. Although you could negotiate with your creditors at your level, it is unlikely you are going to pull off a better deal than a debt elimination lawyer would.
Here are more benefits you get from engaging a debt negotiation lawyer
It will help you avoid filing for bankruptcy
When debt negotiation attorneys succeed in their negotiations and help you eliminate your debts, you avoid filing for Chapter 7 bankruptcy. Most people in debt tend to choose the easy way out by filing for bankruptcy, but it ends up costing them their credit score and further ruining their financial future. In 2017, individuals with consumer debt filed more than 740,000 bankruptcy petitions. That’s a sorry state of affairs, seeing that some would have avoided bankruptcy, had they engaged a debt negotiation lawyer.
You can stop severe reactions from creditors
Your creditors have the right to take legal action against you after you have defaulted on a loan. Even though the measures they take to repossess their money are subject to the terms and conditions you had agreed upon, they are still not desirable. Creditors might come for your income or your assets tied to your loan. Additionally, creditors will deny you peace by constantly calling to remind you about the loan, and may also resort to sending auctioneers to your home or company.
Debtors who have been on the receiving end of harsh creditors will tell you that enforced debt collection process will put you through the wringer. These are scenarios you can avoid by engaging a debt negotiation attorney, as they will guard your legal rights and make sure creditors don’t turn your life upside down. Additionally, if your debt situation is too damaged to salvage, your debt attorney will guide you on the best way to file for bankruptcy.
When you are faced with insurmountable debt, like many Americans are as a result of COVID-19 hardships, your best call to action should be engaging a debt negotiation attorney. They can help you to find out ways you can handle the financial mess. Contact a debt negotiation lawyer Phoenix to help you find a way out of debt, and save you from going bankrupt or being auctioned. Your debt attorney will also help you come up with a solid financial plan that will keep you out of debt in the future. Contact the Law Office of Larry Karandreas today for a bankruptcy lawyer.