Sometimes, it just happens: You borrowed some money from a bank or lender with every intention of paying it back, but wound up facing an amount you can't possibly afford. The bankruptcy lawyers at Montgomery's Backus Law Group are dedicated to providing compassionate, individualized legal services to individuals who are struggling with debt or bankruptcy. They know how stressful it is to face a debt that you can't pay back, but fortunately, there are several ways to handle the situation.
Here are three strategies to settle a debt from the bankruptcy attorneys at Backus Law Group:
- Negotiate The Total Amount: Whether it’s the original creditor or a debt collection agency that’s attempting to collect from you, you should start by negotiating the amount you have to pay back. Even if you can’t afford to pay the full amount that you owe, collection agencies are going to try to get you to do just that. Depending on the circumstances, you may be able to negotiate them down to 40% or less of the original debt.
- Negotiate The Due Date: Some debt collection agencies require the agreed-upon amount to be paid in full within 30 days. If you fail to pay within that time, the original agreement becomes null and void, and you will have to start the negotiations all over again. After negotiating the amount, be sure to set a realistic due date and get it in writing. Save all your checks and any paperwork so you have proof that you paid on time.
- Negotiate The Terms Of Your Account Standing: Your account standing is most likely an afterthought, but it’s a critical component of settling debt, especially in regard to your credit history and future borrowing power. A qualified bankruptcy lawyer can help you negotiate the most favorable account standing possible given your particular situation.
If your debt is no longer with the original creditor, it’s important to keep in mind that there’s less accountability on the collector’s part. That means you should get everything in writing, and you may benefit from hiring a bankruptcy lawyer to help you track the settlement.
If you feel like you’re drowning in debt, Backus Law Group may be able to help. Call them today at (334) 265-0800 to schedule an appointment with an experienced bankruptcy attorney or visit their website to learn more about their areas of practice, including divorce law.