Many individuals that fall into the pit of debt comes from a lack of knowledge and understanding. Take it from this real life situation from a couple:
Liz has a husband who returned his vehicle after he lost his job. Now the company says that he has a debt of $7,000. But the couple refuses to pay the amount, and now they are slapped with a judgment from a law office demanding payment or they will have to go to court to settle this debt. Many people would ask, believe or not, if this couple is obliged to pay this debt back?
Simply the answer yes. A debt doesn't disappear simply because someone decides not pay it. The fact that the husband signed the loan paperwork to buy the car, which in turn obligated him to repay a certain amount. Even though the husband voluntarily surrendered the car, it didn't change his obligation. Most likely the surrender would be reported the credit bureaus as a repossession, which would be a big negative mark on his credit report. Some people mistakenly believe that a voluntary surrender would avoid and credit damage of some sort.
Fortunately there are solutions. The husband can settle this debt less for what he owes, especially if he can offer a reasonable lump sum that the creditors would accept, but negotiations can be tricky, which in turn having an attorney can be useful. At least he would be armed with someone who is more knowledgeable regarding a matter like this.
But if the couple could absolutely not pay this debt back and also have numerous unpaid bills, they would definitely benefit from talking a bankruptcy attorney who can give them solutions to this headache.
Here at Atlantis Law we gave very knowledgeable Attorneys who can give you different options for your financial heartache.
Give us a call now to see your options!