Negotiating With Creditors After a Job Loss

Negotiating with your creditors can be a challenging process, but it may help you reduce your debt and avoid more serious consequences. Here are some steps you can take based on web search results:

• Assess your debts and income. Make a list of all your creditors, how much you owe them, and what interest rates and fees they charge. Also, calculate how much income you have or expect to have in the near future.
• Do some research on your creditors. Find out how they handle debt settlement, what percentage of the debt they are willing to accept, and how flexible they are with payment plans.
• Save some money for settlement offers. If possible, try to set aside some money that you can use to make lump-sum or partial payments to your creditors. This will show them that you are serious about resolving your debt and may increase your chances of getting a favorable deal.
• Contact your creditors and explain your situation. Be honest and respectful, and tell them why you are unable to pay the full amount of your debt. For example, if you lost your job due to COVID-19 or a medical emergency, let them know that. Ask them if they are willing to work with you on a debt settlement or a hardship plan.
• Negotiate the terms of the settlement or plan. Try to get the best deal possible for yourself, but also be realistic about what you can afford. Don’t agree to anything that will put you in more financial trouble later on. Ask for everything in writing before making any payments.
• Pay the agreed amount and keep records of everything. Once you have reached a settlement or plan with your creditor, make sure you pay according to the terms and keep track of all receipts and correspondence. This will help you avoid any disputes or misunderstandings later on.

Or Save Time and Reduce Stress by Contacting a Qualified Debt Relief Law Firm

Filing for bankruptcy is a serious decision that has long-term consequences for your credit and finances. It may help you get rid of some or all of your debts, but it also affects your ability to get loans, credit cards, or even jobs in the future. Therefore, you should consider all your options and consult a professional before making this choice.

There are two main types of bankruptcy for individuals: Chapter 7 and Chapter 13. Chapter 7. Chapter 7 seeks to discharge and eliminate your debt. Chapter 13 is also known as reorganization bankruptcy because it involves setting up a repayment plan to pay off some or all of your debts over three to five years.

Whether you can file for bankruptcy and which type you can file depends on several factors, such as:

• Your income and expenses
• Your assets and liabilities
• Your state’s median income and exemptions
• Your tax filing status and history
• Based on web search results, here are some general guidelines:

If you have no income or low income, you may qualify for Chapter 7 bankruptcy if you pass the means test. The means test compares your income to the median income in your state and deducts certain expenses to determine if you have enough disposable income to pay back some of your debts. If you do not pass the means test, you may have to file for Chapter 13 bankruptcy instead.

• If you have no savings or very low savings, you may not have much to lose by filing for Chapter 7 bankruptcy. However, you should be aware that some of your nonexempt assets may be sold by a trustee to pay off your creditors. Your attorney will advise you of your assets are exempt from liquidation under your state’s laws.
• If you have no job or are unemployed, filing for bankruptcy may not be necessary or beneficial. For example, if you have no wages, your creditors cannot garnish them. Also, if you file for Chapter 13 bankruptcy while unemployed, you may not be able to afford the monthly payments under the repayment plan. You may want to wait until you find a new job before filing for bankruptcy.
• If you have not filed taxes or owe taxes, filing for bankruptcy may be complicated or impossible. For example, if you were required to file taxes but did not do so, you may not be able to file for bankruptcy at all until you file them. Also, most tax debts are not dischargeable in bankruptcy unless they meet certain criteria.

Do I Need to Hire an Attorney

You do not need an attorney to file bankruptcy if you are an individual. However, it is highly advisable to have one, especially if your case is complex or involves a lot of debt.

Filing for bankruptcy involves a lot of paperwork, rules, and procedures that can be confusing and overwhelming for someone who is not familiar with them. A bankruptcy attorney can help you:

• Determine if bankruptcy is the right option for you
• Choose which type of bankruptcy to file
• Prepare and file all the necessary forms and documents
• Represent you in court and communicate with your creditors
• Protect your rights and interests as a debtor
• Avoid mistakes and delays that could jeopardize your case

Contact Our Offices

If you have had a serious reduction in income or have lost your job do not wait until you are buried by debt. The experienced debt relief attorneys at the Bond & Botes Law Offices can advise you as to all the options that are available. Call 1-877-581-3396 or email us through our website to schedule an absolutely free and confidential consultation.