Alternatives to Bankruptcy: Negotiating Debt and Credit in Delray Beach, FL

Bankruptcy Delray Beach

Are you finding yourself in the footsteps of Sisyphus, condemned to an eternity of rolling a boulder uphill which will always roll back down again? Financial burdens of past debts can often feel this way and can take away from your ability to move forward in life. Are you struggling with the inability to look past to your debt overcome, have fallen behind in significant insolvency, or are at the verge of creditors taking legal action against you for a lack of repayment? —congratulations on taking this step toward most-permanently resolving your financial and debt concerns with unending creditors by negotiating your debt and credit in Delray Beach, Florida.  

When seeking solutions for credit negotiation and debt resolution, there is an array of steps that you may take toward reversing the negative effects listed on your credit if you have fallen behind on debt. In choosing to settle your debt in an effort to negotiate credit, cutting some of the interest off the debt or even some of the principal, depending on your unique hardships and your state’s legal statutes regarding consumer, debt and creditor rights, are viable strategies in Delray Beach, Florida.   

Know what is Negotiable  

A creditor may be more likely to negotiate with you if the Statute of Limitations on your debt is about to expire and if you have already tried options in debt management.  

Creditors will also have standard policies for how much off a loan principal it will forgive when you haven’t made payments for a certain period of time, which is a form of debt negotiation that you may do independently on your own while speaking with creditors to manage debt. For such independent negotiations, it is advised to get the agreed upon terms in writing before making any repayment, recording the conversations had with the creditor may also help, as often what is understood by either party may be different, leading to potential complications in the negotiation process. However, attaining a written agreement before repayment is key and necessary to protect yourself from legal action renewed by a creditor. If you are incapable of managing your debt, and are behind in the process of repayment, speaking to a legal professional may be beneficial in understanding your options for permanently overcoming unmanageable debts. The Law Offices of John E. Mufson, P.A., in Delray Beach, Florida, can examine with you your specific financial concerns and potential solutions.    

What is the Statute of Limitations (SOL) on a Debt  

The Statute of limitations on a debt is how long a creditor or debt collector can successfully and lawfully pursue legal action to collect a debt. Most often, the statute of limitations starts when you miss the first payment with the original creditor and not when the debt is sent to collection. In the event that a creditor attempts to sue you after this period has expired, you could raise the Statute of Limitations as a defense to legal retribution taken for the given debt.  Keeping this in mind, there is a stark difference between the timeframe that debts may appear on your credit report, often seven years, and that of debt collection statutes. As well, be particularly aware that if you have already fallen behind on your debt, a partial repayment can restart the statute of limitations on a debt or it can restart the time period for how long the negative information continues on your credit report.  

Understanding the difference between Written Contracts vs Open/Unwritten Accounts 

These are both critical categories that may benefit you to understand under the guidance of a legal professional if you are being sued for repayment by a creditor or collection agency.  In Delray Beach, Florida, the Law Offices of John E. Mufson, P.A., can discuss with you cost-free how your specific debt and credit concerns may be negotiated to limit its negative effects from your future.    

In the state of Florida, open accounts, which are generally considered credit card debts, have a Statute of Limitations of four years. Written contracts on the other hand, which may include financial obligations such as instalment payments, mortgages and auto loans, have Statutes of Limitations of five years.  

For student loans, it is advised to verify if there are tax consequences or income garnishing when opting for debt forgiveness. Likewise, there are several types of student loans anywhere from privately to federally issued, it is wise to keep in mind that the Statutes of Limitations for your specific type of student loan vary, and to consult with a legal professional if you are unsure. Acknowledge also, when choosing how you may negotiate your credit and debt, some of the time, if a portion of your debt is forgiven by a creditor, it could be counted as taxable income on your federal income tax, checking on these provisions previous to making any agreement with a creditor is helpful and recommended. If you are in Delray Beach, Florida, the Law Offices of John E. Mufson, P.A., can assist you in understanding credit and debt negotiation options depending on your unique circumstances.  

It is Important to Check Your Credit Before Negotiating and After

It is important to check your credit to see when the dates for the Statute of Limitations and collection were recorded, also the fact that some judgements may have been made on these negative elements that you did not know existed, and to find out where and how these items are affecting your credit., for instance, reports that one in five Americans has mistakes on their credit. As you know, negative credit items affect many aspects of your daily life, including your ability to finance further credit and find work. When you have a law firm on your side, it is even more possible addressing such concerns on a more timely and thorough basis. Credit that is not reported correctly is often not challenged, and it is quite possible to do this, even after the debt has exceeded the timeframe that these may legally appear on your credit report.  Many instances of credit error go unaccounted and may be affecting your finances negatively as is. Discussing your particular credit status and debt concerns in Delray Beach, Florida, with the Law Offices of John E. Mufson, P.A., can help you understand where you stand in your current financial hardship and your future. Give us a call if this is you, (561) 272-1003, stop by our office, 1615 S Congress Ave #103, Delray Beach, FL 33445, or even use our chat system,