Nearly everyone has found themselves in debt at one time or another. Fortunately, there are a number of resources available to help consumers who find themselves owing money to debt collection agencies or other debtors.
Any number of life circumstances can cause someone to fall behind on their financial obligations. Illness, job loss or other unexpected event can lead to economic hardship and make it difficult for people to stay on top of their monthly bills. When the debt becomes delinquent, it is usually turned over to a collection agency and they are responsible for trying to recover the debt.
Collection agencies will call repeatedly and even harass consumers, regardless of whether they have the ability to pay back the debt or not. Threatening phone calls and pressure to pay back debt can cause immense stress, loss of sleep and anxiety. This can interfere with your ability to earn an income and can make it even harder to pay back the debt you owe. Luckily, there are services that provide debt collection help in these situations.
Debt Collection Professional Help
Among the many organizations dedicated to helping you deal with debt collection actions are consumer counseling agents and financial advisers. These people can help consumers learn how to manage their finances and potentially avoid debt in the future. However, they are rarely able to provide debt collection help for current debt.
A debt lawyer is not only able to provide debt collection help; they are trained to do exactly that. Attorneys who specialize in debt collection problems know what your consumer rights are and know exactly what steps to take to ensure that the debt is entirely your obligation. Debt lawyers also know how to get debt settlements arranged so that you can potentially pay the debt at a reduced cost.
Finally, attorneys provide consumers with debt collection help by assessing their financial situation thoroughly and determining what debt relief option is the best choice for them. One individual may benefit from a debt settlement, while another may be best served by considering bankruptcy. The expertise of a debt lawyer is invaluable to clients and is the compass that guides their decision in any debt related situation.
Can a Debt Attorney get a Debt Forgiven?
When a creditor agrees to release a debtor from their financial obligation on a debt, in full or in part, that is considered debt forgiveness. Although this strategy has not been commonly used in recent decades, the economic downturn and housing market collapse of 2007 and 2008 prompted a surge in debt forgiveness. But it does not apply in all situations.
The Mortgage Forgiveness Debt Relief Act of 2007 was enacted to help consumers who were victims of the housing bubble. This act allowed consumers to have their mortgage debt forgiven without having to claim it as income on their tax returns. The Emergency Economic Stabilization Act of 2008 expanded upon the 3 year time frame of the first act set forth and allowed income tax free mortgage forgiveness for any forgiven mortgage debt between the years of 2007 and 2012.
Other laws that pertain to debt forgiveness correspond to consumer debt, which is different than residential mortgage debt. The laws surrounding this type of debt are confusing and can be hard to follow. This is where a debt lawyer is essential. Understanding all the laws pertaining to debt, and specifically, which ones allow for debt collection help, is imperative if you really want to resolve your debt situation.
Tax debt is another type of debt that consumers need debt collection help resolving. Many people just assume that they cannot have IRS debt forgiven. But there are circumstances that will allow a consumer to participate in a debt settlement or reduced term negotiations on an IRS tax debt. Again, a debt lawyer will know exactly what you can and can’t do and will help you determine what course of action you should take to clear up any IRS tax debt.
A skilled debt lawyer will also research the laws in the Fair Debt Collection Practices Act (FDCPA) to ensure that you are incompliance with current legislation and to see if any collection agencies have violated your consumer rights in the process of trying to recover the debt. Getting a debt settled is not always easy. But many creditors will forgive a debt in exchange for not being sued. If a debt lawyer believes that a creditor has violated your rights, you may have a good chance of getting the debt forgiven. The debt collection help you need may be extensive and involved. But a specialized debt lawyer has what it takes to help you resolve your debt situation.