Garcia & Gonzales, P.C. July 16, 2015

Even the most fiscally responsible people can find themselves in situations where they are unable to meet their financial obligations. Whether this is because of divorce, unemployment, illness or some other reason, the bottom line is that the following facts can be pivotal to helping you:

  • Figure out your best debt relief options

  • Know when to reach out for professional debt relief help.

When You Are Struggling Financially, Be Aware that…

1 – Communicating with your creditors can be helpful.

Ignoring your creditors is not a viable solution when you can’t make your debt payments. Instead, it can be helpful to contact your creditors and explain your situation. In some cases, creditors may be willing to work with you. For instance, they may let you miss a payment or two, waive late fees or even put you on an alternative payment plan.

2 – Debt settlement programs can be risky.

Although debt settlement programs can promise to reduce your debt obligations, possibly by settling them for you for “pennies on the dollar,” these programs have some potentially serious downsides, especially for those who will not be able to stay the course for a few years.

In fact, debt settlement programs tend to tell people to stop paying on their debts while the companies negotiate with creditors. At the same time, those who enroll these programs will usually be required to deposit a certain amount of money every month into an account (that will then be used to pay the settled debts).

If people can’t keep up with these payments (which isn’t uncommon, given they are dealing with some money issues), they will end up worse off financially, as they will get dropped from these programs (possibly without having any of their debts settled) while their other debts have increased (because they haven’t been making payments on them).

So, be careful, and think twice before enrolling in these programs.

3 – Debt collectors are not allowed to use deceptive or abusive tactics on you.

The Fair Debt Collection Practices Act (FDCPA) makes it illegal for debt collectors to use abusive or deceptive tactics to try to collect debts. Understanding the FDCPA can be crucial to knowing when debt collectors have violated your rights.

4 – Bankruptcy can help.

Ultimately, if you have little to no income and/or you do not foresee a way of resolving your debt situation, it may be time to consider pursuing bankruptcy.

Contact the Experienced Bankruptcy Lawyers in Denver at Garcia & Gonzales, P.C.

Are you looking for real relief from serious debt? If so, you can trust the experienced bankruptcy lawyers in Denver at Garcia & Gonzales, P.C. to provide you with experienced help, honest answers and the highest quality legal services.

To learn more about your best debt relief options, as well as how we can help you, contact us today by calling or by emailing us using the drop-down contact form at the bottom of this page.

When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.