Mistakes To Avoid When Handling Your Debt

: Chris Lee Law Firm

  Filed under: Debt

mortgage, bankruptcy, attorney,If you are in a position where you are forced to renegotiate with your creditors in an effort to stave off seeking bankruptcy protection, there are some things you need to be aware of and pitfalls that you should avoid at all costs.

One of the most important things to understand is whether your debt is secured or unsecured. The secured debt creditor is by nature in a much stronger position than a debtor who holds an unsecured obligation because they can repossess the item held for collateral. This does not mean the unsecured creditor has no recourse, they are able to exert pressure to make good on the debt by suing the debtor and even having wages garnished if the courts see fit to allow them that option. They can also seize or levy your bank accounts if you have money in the bank.

What you need to do is contact a qualified bankruptcy attorney to get the best advice possible to learn the best way to proceed. There are some relatively unknown factors that an attorney will explain to you. One very important thing to remember is that unsecured debtors will often take less than 100% on the dollar in order to get something back instead of nothing if the debtor is forced into seeking bankruptcy protection.

This and other tactics are usually not well known and need to be sought out as the creditor will seldom tell the debtor that he has any other option other than full re-payment. Talk to a trustee or bankruptcy attorney in Dallas and figure out where you stand.

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