What Can You Do Before Your Creditor Issues Charge-Off Declaration And Sells Your Debt?

While big organizations take loans from creditors directly, small organizations and individuals take loans via credit cards. There could be situations when an individual or a small organization reaches a state of bankruptcy. If you are looking for St. Petersburg bankruptcy attorneys to file a Chapter 7 or Chapter 13 bankruptcy, Howard & Associates should be perfect for you. It is important for you to file bankruptcy before your creditor gives a charge-off declaration. A charge-off declaration will blacklist you or your organization in all the reputed and registered financial organization so that you never get any credit card or loan in future.

The Misconception Of Charge-Off Declaration

There is a wide misconception that charge-off declaration from the creditors is a good thing. But it is not as it does not ensure that your debts are discharged. You are still liable to pay your debt, and it is just a way for a financial organization or credit to flag a warning against your financial condition to the peers so that you do not get any loan from other institutes. By charge-off declaration, the credit is keeping your account aside by extending the time period to repay the debt, and they may start selling your assets to recover the debt after the allocated time period of repay.

Sometimes, the creditor may give up all the hope of getting the money from the debtor, and they generally sell the debt to a debt buyer for a small fraction of the money of the total debt. The debt buyer will then go back to the original debtor and employ all the possible legal means to extract the entire debt, and in the process, it makes a huge profit after going through an ordeal. The charge-off signals will bring down the credit score of the individual or an organization and no investor or promoter will likely to take over the company.

Why Do You Need An Attorney To Deal With Debt Collector?

The debt collector who has purchased the debt from the bank for a nominal pay, the person or the organization will employ aggressive method if you do not respond to the formal methods of communication and legal notice. Therefore, it is mandatory that you declare your bankruptcy state at the very beginning with the help of st petersburg bankruptcy attorney. An experienced attorney has more chances to making it successful so that you get discharged of the debts or buy enough time to pay them. This will ensure that the debtor will not be able to flag charge-off declaration and cannot sell the debt to a third-party. Even the third-party will be legally bound to take no action for a certain time period.

Furthermore, if the debtor has sold the debt to an aggressive debt collector, the attorney you will appoint can negotiate with the debt collector to come to an agreement so that you can pay a lump sum amount instead of the entire debt. The debt collectors, in general, are always open to such negotiation after all they are there to make money with whatever they get.
Share on Google Plus

About Kapil Kumar

I am professional blogger share guide about WordPress, blogging tutorial, seo techniques, making money from blog and getting traffic to the blog.
    Blogger Comment
    Facebook Comment