There comes a time in everyone’s life when debt settlement takes the center stage. However, not many people are aware of the various aspects of debts that can help them make the best of a bad situation. In most cases, you will have many unexplored options that can help you assess your debt situation in way that is beneficial to you, without harming your credit score.
One such method is debt negotiation. In case you are unable to pay off your debts in a timely fashion, you can present you case to your creditors and get an extension or change your payment plans that will give you a slight advantage over your loan repayments. When settling debts you might choose to pay it back in lump sum or you can do so in timely installments, until the entire loan is paid off. In most cases, if you are unable to make your payments on time, a late fee is levied.
Hiring an attorney will also ensure that you have access to credible advice and will offer professional assistance in chalking out your debt repayment plan.
In case your negotiation does not end in favorable terms, your attorney will immediately plan further consequences such as filing for bankruptcy and will handle all court litigations with ease. One of the main benefits of working with an attorney in such cases is that you will not have to go deal with the confusing paperwork on your own.
Legal implications of debt settlement
Being sued in the midst of a settlement negotiation can be a shocker, but it shouldn’t really deter you from your plans. The first thing you need to do in such cases is contact your attorney, or hire one if you haven’t already. Your attorney will work on your behalf and will take care of all the necessary legal work in a streamlined fashion.
Discuss with your attorney your options and choose the one that suits your situation best. It might not always favor you best, but it will get you out of further troubles. Some of the most common options you will be presented with are-
- Pay back the debt in full. This might be a burden in itself, especially if you are unable to obtain the funds to do so.
- Fight the case. This escalated the matter and will involve a lengthy court litigation that will drain you of our resources and time, but there are slim chances that you might win the case.
- Try to get the creditors to drop the case and negotiate a favorable repayment plan.
Attempting to negotiate a debt settlement on your own can be quite tricky, as your creditors will almost always be backed by a team of competent legal advisors. Thus, it is best to hire an attorney to represent your case, which will reduce any chances of risks.