subject: Debt Settlement Legal Tactics - How Some Financial Laws Could Prolong Debt Relief [print this page] Debt Settlement Legal Tactics - How Some Financial Laws Could Prolong Debt Relief
Although debt settlement is a relatively new concept in the financial world, many people have resorted to it as a means of eliminating their debt and the method is getting more and more popular amongst those who are on the verge of bankruptcy, but who want to avoid its devastating effects.
There are however some things that you may have to watch out for when dealing with creditors. They will often have collectors working for them, trying to get you to pay their debt, even if it is painfully obvious that you have no way of doing so. These collector will call both you and your family or close ones and talk to them about your debt, as a way of pressuring you into paying, but you have to understand that you have a right to not let them harass you.
The only thing you have to do is write them a letter saying that you don't want them to contact you anymore - most people don't realize that they can't be harassed if they don't want to and that the law protects them from just such situations.
Also, you need to be prepared for the negotiation stage - you will require lots of documents that may take you some time to get and not having them on time could seriously slow things down for you. If the creditor see that this takes more than four or five moths he may become irritated and even sue you because you're not putting enough effort into the settlement.
If you do manage to make the deal, you'll have to be very careful about your payments. Even a slight delay could get you in trouble, so it's advisable to have a sound payment plan that will allow you to afford all the payments, without fear of falling behind and getting into debt again. A good payment plan will also help you pay your debt in a reasonable timeframe - if you take more than four or five years the creditor may again start to get concerned and take legal action.
In the end, you need some sound knowledge of the legal issues involved or at least a good attorney by your side, that can guide through your time of need, so that you may achieve financial prosperity one again.
Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options.
