If you receive a letter from a debt collection agency or are receiving phone calls about missed payments, you may be tempted to ignore these contacts, especially if you are unable to pay the debt. However, there are ways you can pay off collections or take other avenues to get out of debt. To help you get started, our bankruptcy attorney in Florida is sharing the steps you need to take if you are being contacted by debt collectors.
If you miss several payments on a debt, the company you owe may send your account to their collection department or sell your debt to a third-party debt collection agency. When this occurs, you will begin receiving letters and phone calls to inform you of the debt, and, in some cases, you will be notified of a lawsuit against you. In a lawsuit for debt, they will attempt to have an entry of a judgment placed against you which may allow them to garnish your wages or repossess your assets.
When you receive a notice from a collection agency to pay a bill, you may consider ignoring it. After all, if you couldn’t pay before, why would they think you could pay now? You may even feel helpless or intimidated by threats and harsh communication these creditors often use to scare people into paying.
However, if you don’t pay your debt, two serious outcomes can occur.
When you receive notice from a collection agency, follow these steps to get back into good standing.
As we mentioned above, if you are unable to make payments on your debt, filing for bankruptcy may be the best option to prevent your wages from being garnished or your assets seized. By filing for bankruptcy, many of your unsecured debts can either be liquidated and discharged or restructured and paid off in three to five years depending on your circumstances. While bankruptcy won’t allow you to discharge government-backed student loans, most tax debt, and domestic debt, such as child support or alimony, it can discharge other debts, allowing you to catch up on your other payments.
If you can’t pay off collections or are struggling with other types of debt, filing for bankruptcy may be the best action for your financial future. To learn about your options and see if this is right for you, schedule a free consultation with our team today by calling [phone] or filling out the form below.
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