Bowen Ten Cardani, PC

Two convenient office locations in Henrico’s West End and Ashland

Call Us For Your Initial Consultation

804-767-6850

Tactics for addressing overwhelming debts

Many people in Virginia are vulnerable to financial hardships after a job loss or medical crisis. Although mounting debts and missed payments could cause paralyzing stress, options for taking control and relieving financial pressure exist. By taking a proactive approach with creditors, one could properly manage debt.

When a person misses one or more payments on a credit card or other type of loan, the creditor might be willing to grant a hardship status that might lower payments or create a deferment period. This could be achieved by calling the creditor and explaining the personal difficulties. For people who do not want to act alone, credit counseling services will try to establish a debt management plan. These organizations might negotiate a lower interest rate, known as a concession rate, or lower monthly payments. A person considering a credit counselor should carefully consider the fees charged for the service.

Debt negotiation firms present another route for people struggling with unsecured debts. This type of service will negotiate directly with creditors and attempt to convince them to accept a settlement offer. Typically, the settlement would need to be paid within 24 to 48 months. However, it might reduce a debt load by 50 percent.

An attorney could provide important insights and services to a debtor who is considering filing for bankruptcy. The lawyer could examine a client's income and debts to determine which chapter of bankruptcy might best reduce the person's financial burdens. An attorney could prepare documents for the court and take direct actions to stop creditor harassment, foreclosure or wage garnishments. As the court considers a bankruptcy case, the lawyer could negotiate with creditors and present evidence of the person's hardships and inability to pay.

No Comments

Leave a comment
Comment Information
Email Us For A Response

We’re ready to work with you.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Bowen Ten Cardani, PC

Richmond Office
3957 Westerre Parkway
Suite 105
Richmond, VA 23233

Toll Free: 866-601-7371
Phone: 804-767-6850
Richmond Office Location

Ashland Office
9410 Atlee Commerce Blvd
Suite 2
Ashland, VA 23005

Toll Free: 866-601-7371
Phone: 804-767-6850
Ashland Office Location

Super Lawyers | K. Matthew Long