What is debt negotiation in Oklahoma?
Debt negotiation is a process where you and your attorney work toward debt relief solutions with your creditors. For some Oklahomans facing financial difficulties, this can be a good method to try before taking more extreme measures such as bankruptcy-to settle debt problems.
While negotiation provides many options to consider, you need an attorney skilled in successful debt negotiation. Oklahoma attorney Scott Harris is known for his experience in helping clients reach debt negotiation settlements.
Through negotiation, common ground can often be reached to provide you with a resolution. You may be able to have debts or interest rates reduced, obtain more time to pay your debts or find relief through other options.
Additionally, you can keep your property/possessions, stop collection efforts from creditors, and begin to rebuild your credit. If an adequate relief option cannot be reached, Scott Harris is prepared to help you move ahead with alternative solutions.
What should I avoid when it comes to debt negotiation?
Uncertainty Regarding Secured vs. Unsecured Debt
- Secured creditors – A creditor or debt collector are interested in a particular asset (car, boat, land, and the like). This creditor has the right to seize the property if you fail to pay the debt.
- Unsecured creditors – These creditors enable borrowers to buy things on credit without providing any collateral (Home Depot, Target, and the like). This creditor cannot return the goods to the debtor’s house if they don’t pay.
Some unsecured creditors may threaten to repossess goods and attempt to trick the debtor into believing they are secured, creditors. This trick won’t work if you know whether the debt is secured or unsecured.
Unawareness of the creditor's advantages
Because they may reclaim the valuable property, secured creditors are in a clear position of strength.
Debtors may be sued for contract violations by creditors. Even while discussions are ongoing, some people will file a lawsuit. Once more, the debtor must maintain his or her resolve and keep negotiating. Creditors can also withhold your salary if they win a case against you.
A creditor may withdraw money from your bank accounts if it prevails in its legal action against you. To preserve your money, you should halt all direct deposits and lower your bank balances as low as you can.
Unawareness of the creditors' weak points
The following flaws apply to both secured and unsecured creditors. You can benefit from using them.
The Fair Debt Collection Practices Act (FDCPA), which restricts the methods debt collectors may employ to recover debts, applies to negotiations you have with a debt collection firm. Although the FDCPA does not apply to creditors, several states have laws that restrict the methods of creditor collection.
Due to the time and money involved and the fact that there is no certainty of success in court, creditors typically view litigation as a last choice.
Finally, the unsecured creditor often receives nothing if the debtor is unable to pay their bills and instead applies for bankruptcy protection.
Failing to seek legal assistance from a debt negotiation attorney
Debt negotiation may be highly beneficial and help relieve financial obligations if debtors comprehend these fundamental ideas before placing that initial contact with a creditor. Consider speaking with a debt settlement attorney in Oklahoma if you require assistance dealing with debt collectors.
What are the available debt relief options for you in Oklahoma?
Attend programs for credit counseling or debt management
A type of credit counseling that is frequently provided for free is a debt management program.
A single monthly payment is often made to the credit counseling organization, which subsequently distributes the money to creditors in the hopes of getting reduced interest rates. Even though these products are sometimes provided without charge, you still have to pay the entire principle debt total plus any applicable interest. The drawback of credit counseling is that these programs have poor completion rates and are intended to take between three and five years to pay off the debt.
When you consolidate your debt, you take out a sizable loan or credit card with a promotional low interest rate, and you use the money from that loan to pay off other types of unsecured debt with higher interest rates.
This method of debt relief merges several monthly payments into one that, in principle, is less than what was previously being paid in total. The drawback of debt consolidation is that some credit cards or loans may be difficult to qualify for, and if they are not returned within the promotional period, the interest rate increases to high levels again.
Debt Negotiation or Debt Settlement
Oklahoma Debt settlement is a process of negotiating with creditors to reduce the principal balance owed on unsecured debt. Because the total of debt is reduced in addition to the interest rate, debt settlement can be a quicker and less costly option for achieving debt relief than either debt consolidation or debt counseling.
File for bankruptcy
For debtors who consistently find themselves buried in financial commitments they cannot handle, bankruptcy may be unavoidable.
Depending on the type of bankruptcy filed, formally declaring bankruptcy might cease the collection efforts creditors have started, and the debtor is freed of all or portion of their obligations. However, this method of debt relief seriously harms one’s future borrowing capacity.
How do I know if I am a good candidate for debt negotiation?
Debt settlement is not appropriate for everyone, but it can assist some people in managing their finances without resorting to bankruptcy.
If you owe money on credit cards or outstanding medical bills, which are examples of unsecured debt, you have the right to negotiate for debt settlement. While payables burden you, you must have a steady source of income that allows you to settle the smaller debt as arranged. Otherwise, bankruptcy is the best solution at the moment.
Get in touch with a reliable debt negotiation attorney in Oklahoma
If you are needing help resolving financial issues, it’s time to contact Scott Harris Law. We will meet with you to discuss your situation and what options might be available to you. We can help you decide the best plan to move forward and begin to defend your rights.