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Negotiating with Creditors

Posted on November 28, 2016 by Elizabeth Rosar Chermack

What do you do if you cannot afford to pay your creditors back in full, but it also doesn’t make sense to file bankruptcy? For example, if you owe $2,000 to a creditor, but you can’t afford to pay them in full – what do you do? In that situation, it really wouldn’t make sense to file bankruptcy, but that $2,000 debt is still out there and you need to figure out a plan so you can move forward with your life.

In that case, you are most likely going to need to negotiate with the creditor. Many times people are so overwhelmed by their debts (especially when they know they cannot afford to pay them in full), that they try to put off dealing with them. That is very understandable; especially when you have tried to contact your creditors on your own and the creditors aren’t willing to work with you. It can also be difficult to negotiate with a creditor once they’ve started garnishing your wages. Some creditors will refuse to negotiate once they have a wage garnishment in place. It can also be difficult to negotiate with a creditor on your own, because unfortunately many creditors and collections agencies can be quite intimidating when you are talking with them on the phone about your own debts.

If you are in a situation where you think it makes sense to consider negotiating with your creditors, it might make sense to consult with an attorney about your options, so you can figure out a plan to deal with your debts and move forward with your life. You will also want to talk with your “tax person” (your accountant or CPA) about what impact negotiating with your creditors may have on your tax liability.

Elizabeth Rosar Chermack is a Burnsville Attorney, and can discuss your options with you in regards to negotiating with your creditors.  Call (952) 491-0390 or send an email to liz@chermacklaw.com to schedule a consultation with Liz.

ATTORNEY ADVERTISING MATERIAL. The content of this website is for informational purposes only and is not intended as legal advice. No attorney/client relationship is formed by use of this website. Do not submit confidential information via this site unless and until there is a signed retainer contract on file.

Posted in Bankruptcy Law |
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© Elizabeth Rosar Chermack, Attorney at Law. Disclaimer: The content of this website is provided for informational purposes only. Information you obtain from this website is not, nor is it intended to be, legal advice. You should consult an attorney for individualized advice. Use of this website does not create an attorney-client relationship. Elizabeth Rosar Chermack, Attorney at Law, is a designated debt relief agency by an Act of Congress and the President of the United States. She assists consumers seeking relief under the U.S. Bankruptcy Code.