Financial troubles can take many forms, but debt is often one of the more common reasons for individuals to encounter issues. While having immense debts can be extremely stressful, it is important to understand that you have some basic rights as a debtor that should be protected. Unfortunately, it is common for people to assume a couple of common myths about debt, and learning the truth behind these notions will make it easier for you to understand how to best handle this problem.
Myth: Bankruptcy Is The Only Option For Battling Debt
There is a common assumption among some people that bankruptcy is the only option for freeing themselves from crushing debt obligations. While bankruptcy is certainly a viable option, it should be noted that this is far from the only way that you can find relief from this problem. When a debtor files for bankruptcy, it can be a lengthy and expensive endeavor for creditors because the courts will essentially restructure or forgive the debts. In these instances, the creditor will lose much of their ability to enforce payment for the full amount owed. To avoid this potential outcome, it is common for creditors to agree to negotiated payment terms with their debtors. Unfortunately, if you find that the creditors are unwilling to negotiate with you, it may be necessary to hire a debt attorney for this task. Creditors may be more receptive to negotiating with these professionals as it indicates the debtor may be on the verge of filing bankruptcy.
Myth: You Will Always Have To Pay Debts That Were Accrued Due To Identity Theft
Identity theft is a common crime in the modern world, and it can have long lasting impacts on a person’s financial health. Sadly, there are some victims of identity theft that may believe that they have no option other than to pay these debts. However, it should be noted that debtors are entitled to request proof of their debts. As a result, you should request for the debt holder to provide you with any evidence of your ownership of the debt. Often, it may be possible to contest these charges, because merchants and creditors are legally liable if they failed to verify a person’s identity before granting them credit. By having your attorney research this information about the debt, it may be possible to have it stricken from your credit without having to pay it.
Debts can represent a crushing financial burden, and you need to be aware of the protections that you enjoy when it comes to debt. By understanding that it may be possible to negotiate friendlier payment terms and that debts accrued due to identity theft can be contested, you will be better able to get a hold of this part of your financial life.
Talk to a professional like DEBORAH K. VINCENT, ATTORNEY AT LAW to learn more.
1 thought on “COMMON MYTHS ABOUT DEBT EXPOSED!”
Keep up the good work!
Comments are closed.