Debt Relief Options for You and
For some individuals, bankruptcy is an action to be avoided. If you are overwhelmed by unsecured debt, however, what other options are available to you? What do you do when the amount of your debt exceeds your ability to pay? You may be faced with late fees and penalties, compounded interest, creditor harassment, and further destruction of your credit score. Finding other debt relief options then becomes essential.
Why Choose the Gil Law Firm?
At The Gil Law Firm, we focus on providing tailored relief to debtors who can no longer meet their financial obligations, whether due to job loss, illness, injury, divorce, or bad financial decisions. We understand the stress you face and the toll it can take on your emotional health, personal relationships, and peace of mind. That is why we take the time to thoroughly understand the specifics of your unique circumstances so that we provide options and help guide you through whatever process or program works best for you. In some cases, a debt settlement or negotiation program can be most attractive.
What is Debt Settlement?
In a debt settlement program, a direct negotiation with your creditors takes place seeking a reduced amount of what you fully owe in order to have the debt forgiven. This type of program typically works if you are able to pay off up to at least 50 percent of your outstanding balance. However, you must ensure that once the negotiated settlement amount is paid that your debt is reported to credit reporting agencies as paid or settled. This is so that it no longer depresses your score and so that it cannot then be sold off to any company or collection agency that is in the business of purchasing delinquent debts. If that happened, you would once again be hounded by the company that bought your debt and required to continue paying or face legal action.
At The Gil Law Firm, we can help you by negotiating and/or drafting a settlement and release agreement that will provide you with the protections you need. In negotiation, we will work to help you achieve the maximum reduction amount possible. Each settlement and release agreement we draft with creditors is based on the specifics of the case involved to ensure that no future liability can arise.
What if Your Debt Has Already Been Purchased?
If your debt was already purchased by a collection agency or other company that engages in this type of activity, you still have legal protections. Under the Fair Debt Collection Practices Act (FDCPA), debt collectors are subject to certain restrictions in their dealings with you when trying to collect. You also have the right to be provided with proof that you owe the debt from that collector before being required to pay.
Collection agencies are required to provide sufficient evidence that you owe money via an established contract. If they cannot do so, they fail to meet the required legal burden and cannot enforce payment. If you have retained an attorney, you are also legally protected from having to deal with the debt collector personally; they can only go through your attorney.
Need help resolving your debt? Get the guidance you need by contacting a Dothan debt settlement lawyer at (334) 401-4420 today. Serving clients throughout Alabama, Georgia, and Florida.