Most people, other than con men, will agree that owing money to people they can’t pay is traumatic and humiliating. This is exacerbated when even though people are doing their very best to make repayments and/or organize a settlement they are constantly harassed.
The reality is that whether you are lending or borrowing money, or offering or taking some type of credit for goods, services, property, or anything else, there are risks. Similarly, when things go wrong there are legal solutions, and for those deeply in debt, there are ways to stop creditors from harassing you.
What Happens When You Owe People or Companies Money and Don’t Pay?
The simple answer to this question is that they generally do whatever they can to force you to pay. Companies generally have their own financial departments with at least one person responsible for chasing overdue amounts. That person will phone, remind, and if necessary nag for payment. If that doesn’t work he or she might resort to contacting family members or even the debtor’s employer to try and persuade them to force them to pay. If that doesn’t work they will likely, at some stage, hand the debt over to a debt collection agency after warning that this is going to happen. Then it’s the turn of the collection agency to phone and ask or demand the money, or to harass the debtor until either payment is received or an agreement to pay is reached.
Ultimately, if these “negotiations” don’t work the creditor will probably take legal action that might involve wage garnishments to force repayment, eviction, foreclosure, repossession of property or goods, and if the debt relates to utility services, disconnection or termination.
So what are your options?
Ultimately, you will have to either raise probably yet anther loan to repay the debts, find someone who can help you make the repayments (like a rich friend or family member), or contract with a debt settlement company and repay your debts that way. Alternatively, you can declare bankruptcy.
When is Bankruptcy the Best Option for Debtors?
Many people think that bankruptcy is only the best option when all the other options have run out. But this is not the case. The US bankruptcy laws have been designed to help consumers who get into debt and need a fresh start. It might seem as though you are sinking into a loathsome tip, but bankruptcy can be a savior.
There are two types of bankruptcy that individuals can choose from:
- Chapter 7 that has been designed to quite literally give people a new start after eliminating all their debt.
- Chapter 13 that involves a legally approved repayment scheme at an agreed to, discounted rate. In other words, you pay your creditors, but you don’t pay them as much as you actually owe.
Whichever type of bankruptcy you choose, the system has been designed to stop creditors from harassing you.
If you live in Georgia and are currently in dire financial straits, C. Golden & Fleming can help. We will assess your situation and see whether a Chapter 7 or Chapter 13 bankruptcy is best for you. Either way, you can relax because we’ll take the legal steps required to stop your creditors from harassing you, and help determine what and how much you need to repay.