The internet is flooded with a myriad of articles, videos, studies etc. on competing theories for the repayment of debt. These theories range from the debt snowball to the debt avalanche to the debt tsunami to quite a few others. Many of these strategies address both the financial and psychological aspects of debt repayment-but what happens when consumers are unable to employ any of these debt repayment techniques? What happens when the debt has become too overwhelming?
One situation in which the debt may become overwhelming is in the case of being sued one or more times by these creditors. It is not uncommon for consumers in the midst of finding a viable repayment strategy to be sued. This can seem like the ultimate insult for a consumer who is working so hard to repay debt. Being sued on a debt may be a disguised blessing, however. In cases where the plaintiff is the original creditor i.e. the company that extended credit to the consumer or a company that purchased the debt prior to default, there may be an opportunity for the consumer to obtain a settlement on the negotiated outstanding balance. Some of these settlements may offer consumers substantial savings on the balance,[1] while still allowing the consumer to cross this debt of the list. If the lawsuit is filed by a debt buyer, i.e. a company that purchased the debt after a default has already occurred, there are commonly defects in the lawsuit that results in the dismissal of the case where the defendant/consumer is represented by competent and knowledgeable counsel.
Dealing with debts does not happen in a vacuum. Debt can be a stressor that affects every other aspect of life ranging from employment, personal relationship, self-confidence and health. The long and short of it is that debt can be financially and emotionally draining. In cases, where the debts are either beyond the consumer’s current financial or emotional capacity, bankruptcy may also be an option to either wipe out the debts in a Chapter 7 bankruptcy or to repay a significantly reduced portion of the debt in a Chapter 13 bankruptcy. Both chapters of bankruptcy offer an opportunity for a consumer saddled with debt to start over and to reclaim his or her life and financial future.
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Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 1,800 homes from foreclosure, eliminated $100,000,000 in mortgage principal and consumer debt, and have collected millions of dollars on behalf of our clients due to bank, loan servicer, and debt collector violations, negligence and fraud. Contact us for a free consultation to see how we may be able to help you.
[1] Please note that the court costs and the creditors attorney’s fees may be included in the outstanding balance.
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Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.
