When debts get out of control, negotiating with creditors to reduce them can be beneficial. Not knowing details of your specific situation will make it easier for a creditor to take advantage of you. In any negotiation, knowing what your rights are, as well as the other party’s, is valuable.
Is My Debt Secured or Unsecured?
If you are dealing with a secured debt, the creditor will be concerned with some piece of property that has not been paid for. This can include anything from a vehicle, boat, or home. If a secured debt is not paid, the creditor is permitted to take the property. With an unsecured debt, the merchandise that was purchased by the borrower cannot be taken. Find out what kind of debt you are dealing with. This way you will not be tricked into letting an unsecured creditor confiscate your property.
What are the Creditor’s Strengths and Weaknesses?
A secured creditor has the strength of being able to take any item that is not being paid for. Unsecured creditors have options as well, such as suing for unpaid debts. A debtor may be sued for breaching a contract by not paying. If you are sued and lose, your wages may be garnished. This means your employer would hold back an amount of your wages to be given to the creditor.
Being aware of and understanding these different factors can be stressful and overwhelming. A knowledgeable and experienced attorney will understand the best options for you. The attorneys at Shuster Law, PLLC are here to help. Call (972)315-6222 now for a free initial consultation.