This varies from state to state. 

 

The truth is if some is unable to pay a debt, no amount of threats or coercion is going to change that.

 

Okay, this is a touchy subject, you’ve accumulated a lot of bills, now you’ve reached a point where you can’t make the payments anymore.  The interest rates have soared.  You can’t see the light at the end of the tunnel.  Maybe the situation is that you have lost your job, or you got sick.  Bad things happen to good people.  What do you do?  Do you try your best to keep up with the payments, or do you put food on the table for your children?  It is your moral obligation to pay these bills, we understand that.  But what if you just can’t?  We are not telling you to not live up to your obligations, but sometimes the situation is so tough, you have to make a choice, and these are hard decisions to make. 
 
Obviously, as we have discussed earlier on this website, bankruptcy is always the very last resort, and is almost always avoidable.  Bankruptcy stays on your credit for a very long time.  It is also more expensive, who ends up profiting?  Your Lawyer.  What is the definition of  bankruptcy to you?  It is a legal way to walk away from your debt.  But the truth is, you end up paying monthly payments and legal fees,  the debts stay on your credit reports, lowering your credit scores, and increasing you interest rates, and in most cases, reducing your qualifications for future credit.  Bankruptcy is a very costly decision.  You need to make a decision that will affect you for the least amount of time.  You need to think about your financial future, and what your financial situation will be like this time next year.  Will you be able to qualify for a loan, car, mortgage, a credit card?  What if there is an emergency and you can’t qualify for credit?
 
So what about my debt?  If I don’t pay my payments, will that hurt everyone else in the country?  Will everyone else follow suit and cause the credit industry to increase their interest rates for everyone?  No.  First of all, it is not a total loss to the creditors.  They are able to write some of it off on their taxes and get reimbursed that way, also, they have insurance, and get money returned to them that way, thirdly, they usually opt to sell your account to a collection agency and get part of it back that way.  So it is not a total loss to them.  And remember, most of the balance that you owe is not in the principle, it is in the interest that they charge and the balance has accumulated because of their unfair sky-high levels. 

 

We all know that if you owe on a debt that is used as collateral, the collateral can be taken.  Example is a vehicle repossession.  What about non collateral debts such as credit cards?  Because we are based in Texas I will only discuss Texas laws.  Texas is a no-recourse state.  You might need to check the laws in your state. 

 

There are very few ways that a credit card company or collection agency can force you to pay. Remember this, you are always given due process.  We can advise you of your options. The truth is the threat of a lawsuit or other action from a collection company should pose very little concern. 
 
What will happen, is that you will be hounded will calls and letters from collectors, often they are threatening, and very scary.  In addition, the debt will go on your credit reports, lowering your credit score.  You may not qualify for credit, and if you do, it will be at a very high interest rate. We can stop the creditor harassment. Creditors must follow many state and federal laws governing the collection of a debt, but usually fail to follow the law. They are very unprofessional and their goal is collect money anyway they can no matter how immoral or unjust. To put it very straight forward, MOST ARE SCUM.
 
Our program is superior to bankruptcy.  The first thing you will notice, is that it is less expensive.  We have the ability to stop the harassing calls,  and remove it from your credit report, therefore, increasing your credit score and reducing the interest rates you pay.  Anything we remove will be permanent.  It is as though the debt never existed, preserving your credit history and enabling you to qualify for credit/major purchases at a decent interest rate.
 
Once again we want to stress that you should pay your bills.  First wipe the slate clean and start over, understand the rules and play smart.  Be prepared for the unsuspected.  This includes loss of a job, illness etc. Save, save, save.  Pay your bills on time, limit your debt and pay attention to the changing credit laws.
 
 


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Navigating Debt: Understanding Your Options and Making Informed Decisions

When facing an overwhelming amount of debt, it’s crucial to understand that no amount of threats or coercion will change your ability to pay. If you’ve accumulated significant bills and are now struggling to make payments, you’re not alone. The situation can become particularly dire when interest rates soar and financial challenges like job loss or illness arise. In such scenarios, you might find yourself at a crossroads: should you prioritize keeping up with payments, or focus on immediate needs like providing for your family? These decisions are difficult and deeply personal, and while there is a moral obligation to pay your bills, sometimes circumstances are so challenging that you have to make tough choices.

Understanding Bankruptcy and Its Impact

Bankruptcy is often discussed as a last resort for managing unmanageable debt. While it can provide relief, it’s essential to understand its implications fully. Bankruptcy remains on your credit report for an extended period, and the process can be costly. Often, bankruptcy results in ongoing monthly payments and legal fees, with your debts still affecting your credit report and score. This can lead to higher interest rates and reduced eligibility for future credit, including loans, mortgages, and credit cards. Therefore, bankruptcy is a significant decision that can impact your financial future for years.

Evaluating Your Financial Options

When considering your options, think about your long-term financial health. Ask yourself how your situation might change in the coming year. Will you be able to qualify for loans, car financing, or a mortgage? Consider the potential for emergencies and whether you’ll have access to credit if needed. Your financial decisions should aim to minimize long-term impacts and preserve your ability to recover and rebuild.

The Impact of Default on Creditors

It’s natural to worry about how your inability to pay might affect others, but rest assured that your individual situation does not cause widespread problems in the credit industry. Creditors have mechanisms in place to mitigate losses, such as writing off some of the debt for tax purposes, collecting insurance, and selling accounts to collection agencies. Additionally, a substantial portion of your debt often consists of interest rather than principal, meaning that creditors benefit significantly from high interest rates.

Collateral vs. Non-Collateral Debts

For debts secured by collateral, like car loans, creditors can repossess the collateral if you default. However, for unsecured debts such as credit cards, the process differs. In Texas, for example, laws may offer different protections compared to other states. It’s important to understand local laws and how they affect your situation.

Credit card companies and collection agencies have limited ways to enforce payment, and they must follow due process. Although you may receive persistent calls and threatening letters from collectors, they are often more bluster than substance. Your primary concern should be understanding your rights and options rather than being intimidated by threats.

Dealing with Creditor Harassment

Harassment from creditors can be daunting, but remember that these companies are bound by state and federal laws regarding debt collection. Unfortunately, many do not adhere to these laws and may engage in unethical practices. Our program offers a more effective solution than bankruptcy by addressing creditor harassment, removing negative marks from your credit report, and improving your credit score. This approach can be less costly and more beneficial in the long run, allowing you to preserve your credit history and qualify for future credit at more favorable rates.

Practical Steps Moving Forward

Despite the challenges, it’s crucial to approach your debt situation with a proactive mindset. Begin by clearing your slate and starting anew. Educate yourself on credit management, prepare for unforeseen circumstances, and build an emergency fund. Prioritize timely bill payments, manage your debt carefully, and stay informed about changes in credit laws.

In conclusion, while dealing with debt is undoubtedly challenging, understanding your options and making informed decisions can help you navigate these difficulties more effectively. Whether you choose to explore alternatives to bankruptcy or seek assistance to manage creditor harassment, your goal should be to find a solution that minimizes long-term consequences and sets you on a path to financial recovery.