Debt is a common problem in America. Fortunately, you have a number of options for reducing your debt, including settlement, negotiation and bankruptcy. Because most people want to pay their bills, bankruptcy is usually a last resort. Working with creditors to make alternate payment arrangements or to settle accounts for less than the principle balance can be difficult. Aurora Bankruptcy Lawyers can defend your rights in your efforts to resolve your debts and can help you through the bankruptcy process if you are unable to successfully negotiate with your creditors.
It can be very difficult to negotiate with credit card companies without the assistance of an attorney. The representatives can be intimidating to consumers and may demand full payment or threaten their long-time customers with collection action if you miss payments, even if you can prove that you have a financial hardship. If you tried and failed at negotiating with your creditors, consider hiring an attorney. A lawyer, such as Ledford and Wu, will ensure that your rights are protected in the negotiations and that your creditors abide by the laws in the Fair Debt Collection Practices Act.
A lawyer may be able to help you reach an agreement with creditors, but you must be realistic about the amount of money you can pay. Defaulting on your negotiated agreement may make the relationship between you and your creditor worse. This often happens when people in your situation use the services of debt consolidation companies. The services sometimes take customers’ money but don’t make payments on time or make claims that they cannot back up, leaving their clients with more late fees and collection charges than they had when they signed the contract.
In many cases, Chapter 7 or Chapter 13 bankruptcy offer a better option than debt settlement or negotiation. The bankruptcy code provides an avenue for people who are unable to pay their debts to legally have unsecured debts discharged or to make affordable payment arrangements that the creditors are required to honor. Whether you want to negotiate with creditors or explore your bankruptcy options, Aurora Bankruptcy Lawyers can explain your rights and guide you through the legal process. Click here for more information.
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