Falling behind with financial obligations is not something most people enjoy. The situation becomes more unpleasant as creditors begin to implement procedures for debt collections in St. Charles, MO. Before making a rash decision about how to respond, it helps to get advice from an attorney. Here are some of the suggestions a legal counsel will recommend.
Looking into Debt Settlement Options
In some cases, it is possible to bring debt collections in St. Charles, MO to a close by working with creditors to set up settlement arrangements. This typically involves retiring the entire balance owed to the creditor within a specified period of time. In exchange for this type of arrangement, the total amount due is reduced. Using an agreed upon payment schedule, the debtor will make payments that ensure the adjusted amount is paid in full by a certain date. In the interim, the balance does not accrue additional interest, something that makes it easier to get rid of the debt.
Considering Debt Consolidation
Depending on the income level and the type of assets the debtor holds, it may be possible to end the efforts of debt collections in St. Charles, MO by securing a debt consolidation loan. The lender remits payments directly to the creditors and receives confirmation of the payment. That leaves the debtor with one obligation to manage each month, usually with a payment that is less than the cumulative payments of those settled debts.
Filing for Bankruptcy
If settlement or consolidation is not an option, bankruptcy may be the only answer. An attorney can evaluate the situation of the debtor and see if it is possible to qualify for any form of personal bankruptcy. If so, the attorney can make sure the client understands what must happen in order for the court to approve the action.
For people who are facing collections, it pays to find a solution that works for everyone involved. Make an appointment with the team at Van Dillen & Flood P.C. and see what can be done. Taking action now, before things get worse, will make it much easier to resolve the problem and get your finances back on track. Click here for more information.
