Reasons for Stopping Lawsuits on Collections
There are many ways to stop debt collectors from harassing debtors about paying their overdue bills says Fesenmyer Cousino Weinzimmer
CINCINNATI, Dec. 20, 2022 /PRNewswire/ -- Sometimes people get in over their head with debt. At some point, if someone is unable to pay the debt, the debt may be turned over to a debt collector. Debt collectors can cause a great deal of stress. They can threaten debtors with wage garnishment, vehicle repossession, bank account attachments or levies, and foreclosure.
The Fair Debt Collection Practices Act (FDCPA) sets parameters for debt collectors, such as not being able to call a debtor at their workplace, not calling before 8:00 a.m. or after 9:00 p.m, and not threatening to put the debtor in jail.
However, these guidelines do not prevent debt collectors from calling daily and requesting payment. There are ways to stop the debt collectors: pay the debts, work out a debt settlement, work out debt consolidation, and declare bankruptcy.
A debt settlement is when you work out a payment plan with your creditors. An attorney who specializes in debt settlements can help you negotiate your debts and pay a reduced amount over a period of time. Often, a collector will agree to a lesser repayment amount if they think it will be more than what they would collect from the debtor if the debtor declared bankruptcy. The repayment time period is usually around 36 months.
Another option is debt consolidation. Debt consolidation is when you take out a new loan to pay two or more older debts. Debt consolidation is negotiated between the debtor and creditors by a consolidation service. The new loan should have a lower interest rate than the current debts and will usually have a longer pay period. The loan can be secured by a debtor's home or can be an unsecured loan from the consolidation service.
According to attorney Thomas Fesenmyer, "Bankruptcy has the biggest impact on reducing issues with collectors. As soon as the bankruptcy action is filed, an automatic stay is put in place." Most unsecured debts will be eliminated, and you should be able to keep your home, car and most of your possessions. Chapter 7 bankruptcy can resolve debt issues quickly, and there are many Ohio bankruptcy exemptions to protect your assets. Chapter 13 bankruptcy allows you to reorganize assets and consolidate your payments.
Fesenmyer Cousino Weinzimmer focuses on debt-relief law practice, including bankruptcy, debt settlement negotiations with creditors, and foreclosure defense for mortgage holders. The firm has offices in Columbus, Dayton and Cincinnati, and its seasoned attorneys are dedicated to helping their clients stop credit collections and lawsuits.
This press release was issued through 24-7PressRelease.com. For further information, visit http://www.24-7pressrelease.com.
SOURCE Fesenmyer Cousino Weinzimmer
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