, then I may have few ideas that can be very helpful to you. The key is in understanding and working with the methods available. Either you are creditor or debtor, you would have to understand and evaluate the consequences of each method. The most important part is to understand that there is a step between credit debt redemption and failure to repay the loan i.e. negotiations as both the parties do not want to engage in the options of credit debt redemption of the secured loan. There are several options available to creditor and debtor and there is quite the variation by force and costs required.
1.Voluntary agreement:
The best part about this method is that it gives a significant importance to the negotiations of the details to credit debt redemption to both the parties with much lesser cost than other options. This is a highly helpful method. Creditor gets the chance to avoid any further costs required in other processes of credit debt redemption and debtor avoids the fees. In such scenario, the details can be worked out in the benefit of the both the parties as both parties stand to gain quick solution as most of the times the debtor can sell the property at much better price than the debtor and such situation is mutually profitable and much better than the claim and sell by the creditor.
2.Self repossession:
This method of credit debt redemption involves taking the physical control of the property in question. Though laws against the execution of the self-possession vary with each state, the standard implies no use of physical force and the creditor must leave the premises in case the debtor refuses to surrender the property.
3.Court action:
This is the most expensive form of credit debt redemption as some times it may turn out to be easier to pay the loan than bear the expenses for years. This method is more expensive for the debtor as there is an entire legal department that most of the credit organizations are paying anyways.
At the end of the day, the more number of parties are allowed to get involved in the process of credit debt redemption, more difficult it would be for creditor and debtor to come out of it profitably. The best solution is the voluntary agreement as creditor can get the loan cleared and debtor can come of with some money in the hand rather than the lawyer bills.
This method is more expensive for the debtor as there is an entire legal dep.