Thousands of people across the country are faced with overwhelming debts on a daily basis. Many of these people feel that filing for bankruptcy is the only viable option to remove themselves from debt. Fortunately, debt settlement, which is also known as debt reduction or debt negotiation, exists. It is a way of reducing debts that does not involve completely destroying a credit score.
Debt settlement is a new way of dealing with debt and credit problems. It involves negotiating a debt settlement problem with a creditor. Typically, a debt counselor will help in the negotiation of the plan to remove debts. This whole concept is a legitimate solution for consumers whose credit card debt is overwhelming. The concept is equally useful for people who have fallen behind on payments as it is for people who are barely able to afford the minimum payment.
Bankruptcy Lawyers In Tucson AZ, Arkansas Bankruptcy Lawyer, Chapter 7 Bankruptcy,
Unfortunately, no solution to debt is completely free from potential downsides. Debt settlement, like other options, will have a negative effect on a person's credit rating. Fortunately, this will be less drastic than if an individual files for bankruptcy. There is also the possibility that the creditor will take legal action to collect the full amount owed to them. The final potential downside is that creditors will continue to call until the debt is settled.
The potential for negative consequences is diminished in Florida due to the state's favorable debtor laws. Florida provides its citizens with numerous rights and protections concerning past due amounts on unsecured accounts such as medical bills, credit cards, repossessions, and personal loans.
All states have laws that require collection agencies to stop contacting a consumer if the consumer sends a Cease and Desist letter or a Power of Attorney letter which tells the collection agency that a third party is responsible for handling all communications with the creditor. Florida protects its citizens more by limiting the harassment from collection agencies as well as the original creditor (this is the bank or credit card company). The same laws which regulate and restrict what a collection agency can do also restrict the harassment abilities of original creditors.
In addition, Florida has set up laws that frequently completely protect a debtor's wages and homes. Wages are protected by the state's wage garnishment laws. This legal structure gives a creditor more of an incentive to settle.
Many cases, despite all of these protections, do end up in court. This is because creditors always have the right to sue a debtor as a means of collecting a past due amount. This is true regardless of whether the consumer has taken any action to resolve outstanding debt.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Cheap Bankruptcy Lawyers
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment