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Negotiation and Settlement >> Negotiation
Tips
In debt burdened conditions it might often happen
that you may find it almost impossible to pay back your debt amounts.
The situation might worsen to such an extent that you may need to file
bankruptcy in the near future. In this case all the previous amounts you
have paid the creditors goes in vain. With bankruptcy process you have
to start the whole operation of paying back from a scratch. We feel that
filing bankruptcy is not an ideal move.
Keeping the above point in mind we recommend you with few other tips
which you can try out in order to avoid bankruptcy
- Take
the resource of time: Time is the best healer. The creditors in your case
will also stop pursuing you as a considerable period of time passes by. If your
debt remains uncollected for a long time it also increases your chances of a reasonable
debt settlement. At a certain point of time the creditor will consider the debt
amount as loss to get a corporate tax write-off. But this doesn't mean you will
not be persuaded by the creditor to pay back your debts. The credit company can
collect the debt themselves, sell or assign it to a collection agency, pursue
the case legally for wage garnishment and sometimes can even ignore it for the
time being. If you are contacted by more than one collection agency on the same
debt, it is a good sign for you. This indicates that, the creditor as well as
the first collection agency has given up hopes on you. At this stage different
collection agencies can charge different rates. If the agency has failed to contact
you by phone, and is aware that there is no response from you even after receiving
letters. In these cases you can be sure of getting a deal for a lesser amount.
- Eagerness
to debt settlement should be less: Go on negotiating till you have your say
or arrive at an agreement suiting you. Show less interest in settlement of debts
and always allow the creditor to pursue the matter. Remember, you can get a favorable
settlement only if the creditor is cornered and not you. If the creditor can smell
that debt settlement, it may not be beneficial to you, and then you will have
no hope to get a settlement in your favor. The creditor may now demand for the
full balance.
- Make the creditor aware of Statute limitations:
Don't forget to make the creditor aware of statute limitations. Also make sure
he knows that only a limited period of time is there in his hand. Keep a track
of new statutes and update the creditor on the same.
- Threat
the creditor with plans of bankruptcy: Approach the creditor in a manner that
he is convinced about the fact, that you have got very little money and are on
the verge of bankruptcy. Talk to them as if it is their last chance to come to
a settlement. Automatically they will be alarmed. After all if you file bankruptcy
they will get nothing. But if you get trapped into fresh debts, you might not
be able to get rid of debts through bankruptcy.
- Good records
are of great help: Last but not the least, keep good records while settling
your debts. This can prove to be a major factor in differentiating between good
and bad debt settlement.
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