When faced with a financial condition that is deteriorating for any reason, many creditors are willing to work with you IF they understand your situation.  Two of the biggest reasons for bankruptcy filings are medical conditions and divorce.  Both of these situations are serious situations that most creditors will understand.  Also, creditors should understand that if you have a bona fide issue that is preventing you from paying your debt, then making an agreement to work with you ensures that they retain you as a client, build better customer relations, and that they will be paid either partially or over a longer period of time.  By contrast, if a creditor is unwilling to discuss your situation with you, your account will likely be turned over to a collection agency and the creditor typically receives little or no payment for the debt they own.  Sometimes you should discuss your situation with your creditor and sometimes not. A few simple rules are that (1) you should never agree to play more than the original debt, (2) you should never agree to pay more than you are capable of paying, and (3) you should discontinue the discussion with the creditor if it appears that they are unwilling to help you and are instead trying to obtain information for later use in a collections lawsuit.

Creditors do not want your debt to go to collections.  They often can only collect pennies on the dollar from whatever the collection agency collects.  Collection agencies are often unsuccessful in collecting debts, so creditors further understand they may not collect anything from a debt that has been turned over to a collections agency.

Negotiating your debt with a creditor can be a complex scenario and you may wish to retain the help of a professional such as an attorney to help with the negotiations.  An attorney should be skilled in determining whether the creditor is willing to negotiate with you or not.

In reality, it is in both the best interest of the debtor and the creditor to work out an arrangement that works for both parties.  This can help to prevent the customer from falling into debt that is difficult to recover from and ensures that the creditor can recover a maximum amount on the debt that is owed.

This article contains material of general interest and should not be construed as legal or financial advice or a legal opinion on any specific facts or circumstances.  This content may not be relied upon as personal, legal, or financial advice. This article does not include legal advice and does not create an attorney-client relationship.  If you need legal advice, please contact an attorney directly.

8 thoughts on “Can’t I just deal with my creditors myself?

  1. Hi my loved one! I wish to say that this article is amazing, great written and include approximately all
    vital infos. I’d like to peer more posts like this .

    My blog post: Royal CBD

  2. I do agree with all of the ideas you’ve presented in your post. They are very convincing and will certainly work. Still, the posts are too short for novices. Could you please extend them a little from next time? Thanks for the post.

  3. I’m still learning from you, while I’m trying to reach my goals. I absolutely love reading all that is posted on your site.Keep the aarticles coming. I liked it!

  4. I needed to put you a tiny observation to give many thanks over again for those pretty strategies you’ve shared on this site. It is remarkably open-handed of people like you to make extensively what a lot of people would’ve marketed for an e-book in order to make some money for their own end, precisely given that you might well have done it in the event you decided. These concepts likewise served to provide a great way to know that someone else have a similar fervor just as my very own to see a great deal more on the subject of this matter. I believe there are some more enjoyable opportunities ahead for those who browse through your blog post.

  5. You really make it seem so easy with your presentation but I find this matter to be really something that I think I would never understand. It seems too complicated and extremely broad for me. I am looking forward for your next post, I抣l try to get the hang of it!

  6. Hey there! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me. Anyhow, I’m definitely glad I found it and I’ll be book-marking and checking back often!

  7. I’m typically to blogging and i actually recognize your content. The article has actually peaks my interest. I am going to bookmark your site and maintain checking for new information.

Leave a Reply