If you find yourself owing debts that you cannot afford to pay back at the present time, you probably feel worried and overwhelmed. Although this is a tough financial time for you, you should take a deep breath and read the information below to learn more about debt collections.
Respond to the Collector
As a foreclosure lawyer in Hartford, CT from a firm like the Law Offices of Neil Crane can explain, when you respond to the entity attempting to collect a debt from you, it shows that you are responsible enough to make an effort. Ignoring the letters and phone calls may seem like the easiest thing to do, but it could end up exacerbating the problem.
If you believe you have been contacted in error, contact the creditor immediately. Explain the mistake you believe to have occurred. Provide any relevant documentation, such as proof of payment, if possible. It is important to document your conversations with creditors and any law firms or collection agencies attempting to collect debts from you. Your attempts at resolving the issue could be beneficial down the road.
How Lawyers Can Be Involved
Lawyers can be involved on both sides of a debt collection situation. They can work with creditors in attempts to collect debts and in lawsuits. Oftentimes law firms become involved in the attempts to collect debts and may have to file suit if those debts are not paid. Alternatively, lawyers can be hired by debtors to assist in settling any outstanding debts.
When to Consider a Lawyer
You may want to consider hiring a lawyer if you have received notification that a creditor intends to file a lawsuit to collect debts, or if you are receiving a plethora of calls from creditors asking for payment. A lawyer may be able to advise you on the best course of action for you to take.
Contemplate Filing for Bankruptcy
When you are overwhelmed by the amount of debt you owe, it could be time to consider filing for bankruptcy. You can discuss this possibility with a lawyer to determine if this could be a viable option for you. Although bankruptcy has some negative connotations attached to it, it can be beneficial as it prevents creditors from filing suit against you for certain unpaid debts. This is typically only an option for debtors who lack the means to pay their debts or even set up payment plans.
Contact a lawyer today to determine if one may be able to assist you in your quest to settle your debts.