Debt Issues and Debt Settlement

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If you are struggling with a lot of debt you might be able to work with creditors and / or debt collectors to make your situation more manageable. This process is known as debt settlement, or debt negotiation. You can negotiate lower payments or potentially reduce the overall amount that you owe if you pay a lump sum up front.

Indications of Excessive Credit Card Debt:

  • Only making minimum monthly payments
  • Not making minimum monthly payments
  • Borrowing from your retirement savings account to pay credit card debt
  • Borrowing against assets to pay credit card debt
  • Transferring debt between credit cards
  • Postponing necessary monthly expenses to pay credit card debt
  • Low credit score

Debt is a common problem and can cause a lot of stress. If you get served with a debt collection lawsuit, do not panic, as help is available. Our expert debt relief lawyers can help you with debt settlements in a compassionate and timely manner. If you need legal advice on foreclosure or are looking to file for bankruptcy, we can help with that too.

How Collectors Collect Debts

  • Property repossession – your property serves as collateral as payment for your debt and your car lender can repossess your car without warning
  • Bank levies – if a creditor has a court order against you they have the ability to freeze your bank account or levy funds from your account. Levies are most commonly used by government agencies, however private creditors can sometimes execute a levy.
  • Property liens – a property liens is a notice attached to your property and is usually a public record. Liens on real estate are a common method for creditors to collect what they are owed. Liens on vehicles can be effective as well, but are less common.
  • Enforcement of child support obligations – both the federal and state governments are involved in enforcing child support orders, and there are several methods of child support collection.
    • Automatic income withholding (includes wage garnishment)
    • Property seizure
    • Jail time
    • Property liens
    • IRS can take your tax refund
  • Wage Garnishment – if one of your creditors has a judgment against you / has sued you for nonpayment, they have the right to garnish your wages. Private creditors typically use wage garnishment as a method of debt collection. With wage garnishment, your employer holds back some of your income (the garnished income limit varies by state) and gives those wages directly to the creditor. The creditor will continue to garnish your wages until the debt is paid off in full or until you come to another agreement with the assistance of a lawyer.
  • Tax refund offset – tax refund interceptions are allowed for 3 situations, outlined below. Before the IRS can take your money, they are required to notify you.
    • You are in default on student loan payments
    • You are behind in income taxes
    • You are behind in child support payments

Debt Settlement Negotiations

If you have trouble paying your car loan or car lease, it is best practice to try and work something out with the lender. If you have difficulty managing high medical bills or high credit card balances, you may be able to negotiate a settlement. You need to be wary of debt elimination schemes and debt consolidation scams, which is something that our experienced lawyers can help you with.

Contact us to start getting legal assistance with your debt issues today!

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