When you stop making loan payments on time or when you stop sending payments at all, the tedious process of debt collection takes place. Your creditor will attempt to collect the debt before they finalize their debt lawsuit against you. The collection of debt comes in a very predictable manner. First, the creditors flood you with emails concerning your account. They will also make calls one after the other to remind you of your delinquent account. Until you make your account current, the calls, emails and other means of reminder will continue.
If you still refuse to make any form of payment, your lender will then take the hard road and resolve to take more drastic means of collecting dues. The creditor might repossess your house that is currently mortgaged with them or take your car or worst, resolve to take legal action by consulting a business lawyer. How do you deal with such debt collection? The easy road is quite simple. Pay for your debt and they will all go away. If you can’t, then filing for bankruptcy might just be your key out of the mess.
Where do you stand regarding how your assets are concerned? If you try to resolve the problem early, then you shouldn’t be worried about keeping your assets intact. However, if your creditor has already taken the legal action, it might be impossible to get out of the mess without losing an asset or two that’s close to your heart. When you’re in the middle of a debt mess, it is best to consult with a business lawyer to help you deal with the problem and find a legal solution to it without losing everything you have worked so hard for.
What kind of debt can you possibly lock yourself in? Here are some of the most popular in a list:
- Unpaid credit card balances
- Health care and other medical bills
- Personal loans through private lenders
- Unsettled utility bills (monthly)
- Institution membership (gym, spa, country club)
Whenever you fall behind your payments, the original creditor will always come after you. They will try all means possible for you to be able to settle your debts with them. In case you no longer have the capacity to pay for all the debts you have incurred, it is best to consult with a lawyer to look at the other options you may have. Whether it’s filing for bankruptcy or putting some of your assets for sale, the choice is up to you. Your lawyer will simply offer you options to get debt problems off your back.