There are times when you cannot file for bankruptcy as you filed way too soon in past. Unfortunately, there are chances of you losing one of strongest bargaining chips if you cannot threaten a creditor with the idea of going bankrupted. On the other hand, you can still negotiate the debt settlements. These settlements will work best with some of the unsecured debts, such as medical bills and credit cards. You can always identify the amount that you can afford to pay in just one lump sum and then get to reach out to creditors for negotiating. In case, you have some of the other debts dangling on top of your head, like unpaid taxes, mortgages, student loans or even unpaid child support, then you might want to head towards some other options in the market.
Identifying the debt types:
You can try settling the debt on your own. If you have no clue on how to work on that, you can head towards debt settlement reviews to get a clear idea on that. Always remember that not all debts are equal, so you have to identify yours first. You will be able to negotiate settlement only with some of the creditors but not all of them. There are some debts, which people take up quite casually and fail to pay right on time, leading to issues.
- Unpaid alimony or child support is one point. The alimony s mainly set by judge and cannot be lowered other than any court order. A judge will not forgive you for failing to just pay child alimony or support. So, this debt cannot be negotiated any more.
- Back tax is another point to consider. It is quite difficult to just lower amount of taxes that you already have listed. But, if you want, you can always get one installment agreement for just paying the taxes amount back over various years.
- Secured debt is another option for you to consider. A debt will always be secured whenever you pledge any asset as collateral. If you fail to pay, the creditor will then seize collateral. Secured creditors are able to suspend payments temporarily or get to change loan terms. But, they are quite unlikely to lower amount that you actually owe.
- You should also check out on the unsecured debt if you have any. Credit card, personal, medical are considered unsecured debts. It means there will be no collateral for securing loan you will be most successfully in settling such debts.
You can always figure out largest amount to offer:
Debt settlement mainly involves offering lump sum. In its exchange, the creditor gets to write off remaining unpaid debt. There are so many creditors willing to accept such a huge amount in place of repayment plan as the amount is more like guaranteed money. So, make sure to go through your savings accounts and some of the other financial accounts. It will help you to check out the amount of money you can actually pull together. In case, you ever need it, you can always ask your family or friends for loan without interest.
Get to meet attorney for discussing the options:
The situation for everyone is quite different. Some debts are way too old that debt collector or creditor cannot due for collecting the same. You must know about that before starting to negotiate. Meet with any attorney to discuss the next strategy to take and tackle debt with ease.
- You can always get a referral to any solicitor by contacting state or local bar association. Upon getting the referral, you can contact the lawyer and ask for scheduling consultation. You can further ask how much the consultation might cost.
- In case, you are suffering from low income, you can easily get qualified for legal help. You can find about the nearest aid office by visiting the Website of Legal Services Corporation.
Always head for the creditor:
You can get into an initial contact over phone. You are not sure how the creditor might respond. They can always help you. You can find the phone number on your received bills and then call. The sooner you get the chance to call them, the better. You can always negotiate directly with creditor and not debt collector. Whenever you call, you can pin down the amount you owe in total. This information may not be that clear from bills. Well, always remember that the interest might accrue daily and various days or weeks might pass since you have received the same.
Be sure to come up with explanation:
You have to explain your situation on why you are lagging behind and failed to repay the amount. You must be able to explain your current scenario in few sentences on why you cannot pay bills. Always be sure to come up with a consistent story always. So, it is always important to be honest and focus on the true story that you have been a part of.
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Have to hold your calmness:
There are high chances that you are feeling quite stressed out. But, you will not get any sort of benefit if you lose your temper. You always have to remain calm. You must also be prepared to hear the person say no, on the other end.
- There are times, when you might expect to get into the thread of being sued. In case, you have secured loan, then you might even lose the property.
- So, if you are prepared mentally and quite well for such threats, then it will be a lot easier for you to handle the situations without breaking down.
Make sure to follow the steps:
If you cannot file for bankruptcy, following these steps might help in working on debt through settlement functions. You have to prepare yourself beforehand as you don’t know what to expect in this regard for sure. Once you are prepared, things will work out in your way.