Millions of people throughout the United States are facing some amounts of debt, whether caused by student loans, medical bills, unforeseen accidents, or other circumstances. Unfortunately for some, these debts can be overwhelming, making it difficult to pay back the minimum amounts owed while also managing other daily living expenses. In these situations, a person may find themselves unable to pay off their debts at all, putting them into a position where lenders begin to seek debt collection through collection companies or the courts.
Debt collection can take a number of forms. Initially it may start as creditors sending letters asking for payment, which can quickly grow into harassing phone calls and more. In addition, a creditor may send the bills to a debt collection agency, which can put a person in even more financial difficulty. When faced with these serious situations, a person is likely uncertain of what they can or should do. Fortunately, there are many options for debt collection defense.
Egan Law, P.A.
Types of Debt Collection Defense
When it comes to fighting debt collection, the seriousness of a person’s financial situation will determine what option is best for addressing the debts. Two of the most common options for debt collection defense in Tampa include:
- Debt Negotiation: When a person has the means to pay some of their debts, debt negotiation may be the best option. In this process, an experienced attorney typically helps a debtor negotiate consolidated debts and paying off less of a debt in a shorter amount of time.
- If judgment has already been entered against you in a debt matter, the creditor may move to garnish your wages. The law does provide certain exemptions that could prevent garnishment altogether, or an experienced attorney can negotiate a lower garnishment amount.
- Bankruptcy: When a person files for bankruptcy, he or she is typically afforded protection from creditors, meaning their debts can’t be sent to a debt collection agency and they cannot be harassed. The most common forms of bankruptcy are:
Chapter 7 bankruptcy: Liquidation bankruptcy that erases unsecured debts after selling (liquidating) eligible assets.
Chapter 13 bankruptcy: Restructuring bankruptcy that consolidates debts into a 3-5 year repayment plan.
Talk with a Lawyer about Debt Collection Defense in Tampa
Facing creditor harassment and burdensome debts can be stressful and frightening. Fortunately, with the help of an attorney from Egan Law, P.A., people dealing with these situations can get help with debt collection defense they need to address their debts and get back on a strong financial footing. Get in touch with our legal team today to find out how we can help you.