Avoiding Creditor Lawsuits

: Chris Lee Law Firm

  Filed under: Credit Negotiations

lawsuit, negotitiate, bankruptcy, attorney,One thing to understand when faced with a rising debt load and a shrinking income is to be very clear that your creditors do have the ability to seek recourse from the courts if a debt goes unpaid and there is no negotiating done on your behalf with the creditor.

You can avoid these lawsuits but you have to be proactive in your approach rather than waiting for an action against you. If you are proactive you may well be able to renegotiate terms that will allow you to satisfy those debts without having to seek bankruptcy protection or actions through the courts. Often times, especially if the debts are unsecured, you may have the chance to lower payments and/or the interest rates associated with those debts.

Many creditors will choose to take a smaller amount or a percentage of the debt owed rather than face a long and expensive protracted lawsuit that may or may not allow them to recoup their investment. For this to occur you have to show the creditor that you are facing a situation whereby you can no longer afford to make the full payments and will be forced to see bankruptcy protection if they choose to not negotiate. For the most part creditors would rather get something rather than nothing and will choose the route that allows them to do that.

Again, you must be able to proactively approach the creditor or at the very least respond quickly to any inquires the creditor sends your way. You do not want the creditor to begin the court proceedings as at that point they may be unwilling to be open to negotiations. Be sure to see out a qualified Dallas TX bankruptcy attorney if you are considering this form of debt relief.


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