My debt settlement offer was rejected, now what?

[chifaroch]

When faced with a large debt that you can’t possible pay off by yourself, there aren’t a whole lot of options available to you. The first thing you should probably do is to try and settle the debt directly with the creditor or the law firm representing them. Often, the creditor will be willing to settle for a portion of what is owed rather than getting nothing through bankruptcy. But sometimes, even when you have made the largest possible debt settlement offer you can realistically afford, the creditor will reject your offer. Having exhausted that option, you might be wondering what you can do next.

The next step

When you’ve already done all you can to repay the debt alone, it’s time to seek help. One option available to you is hiring a debt collection attorney. As soon as the debt collection process becomes a legal matter, having an attorney becomes very crucial. Navigating legal waters alone can lead to more financial troubles down the road. Another advantage to hiring a debt collection attorney is that as soon as you have legal representation, any debt collection agencies are required to send all communications through your attorney. That means no more phone calls and letters from debt collectors.

An experienced debt collection attorney may be able to obtain a debt settlement even where you have already tried and failed. Additionally, an attorney can help you pursue other avenues for getting out of debt.

If you’re served papers

Whether or not you choose to hire a debt collection attorney, you will need to carefully read and follow the instructions on any papers you might have been served by the court. If you are given a court date or are asked to submit any paperwork, make sure you make it to court and submit the required paperwork before the deadline. If the court sees you making a sincere effort to take care of your debts, it could make a difference in the ruling.

Stick to your guns

Finally, if a debt collection agency continues to contact you about unpaid debts, stick with your settlement offer. Assuming you’ve already taken a close look at your finances and determined the largest possible amount you can pay, don’t budge on that number. If you overpromise, you may not be
able to come through.

If with the help of a debt collection attorney you still aren’t able to reach a settlement, you may want to consult a bankruptcy attorney. Bankruptcy may be the only way you’ll resolve that debt.

Business, real estate, and bankruptcy law and litigation news brought
to you by mbblegal.net

Source:
foxbusiness.com/personal-finance/2014/01/09/next-steps-if-your-settlement-offer-to-debt-collector-is-rejected/