Millions of people around the world are saddled with debt – it seems to be an inevitable eventuality. It is, in fact, a large proportion of the global economy. Unfortunately, too much debt can lead to other issues such as legal trouble, and when that happens it is important to understand what your rights are and how to deal with them. Therefore, this post collects together some useful legal information as to how to address the legality of debt.
What are Debts?
Debts are monies owed by anyone in contract with a creditor – whether legal and above board or friendly and casual. It takes form in things such as car loans, mortgages, payday loans, credit agreements, and more. Bad debts are those that have missed payments and have tipped over into something unmanageable. Good debts are those that have been paid on time and are up to date in terms of the legal agreement entered into by either participant.
What Are Your Legal Rights?
So, if you find yourself in trouble when it comes to owing money – what are your options? Running and hiding won’t solve the problem, and ultimately, the only way to get the weight off of your shoulders is to fix the problem.
Mental Health Protection
If any significant mental health problem has been a contributory factor or has been exacerbated by your debt problems, creditors have to take this into account in how they approach the debt. Anxiety, depression, ADHD related issues are all causes of poor financial management and can lead people into a lot of trouble when it comes to staying afloat money wise.
With support from a doctor or mental health/psychologist professional in the form of a letter of recommendation, you can reach out to debt collectors and creditors and request different actions moving forward. They do not have to cease all activity related to the debt, but they do have to take things into account.
Payment Plans
Payment plans are a method of breaking the debt down into more feasible portions. This sum can be agreed upon between the involved parties and should be upheld in order to limit any further consequences. This is an option at various stages of the debt collection process and is not always possible depending on how well established the case is.
Fighting a Court Case
In order to successfully navigate a court case related to debt, it is recommended to take legal advice from an established law firm such as Fair Credit. There are many options ranging from elitist to low-budget, but whomever you choose should provide comprehensive insight on how to move forward. You may be taken to court to affirm a possession of goods order or to re-establish the boundaries of a pre-existing debt through an official judge.
Debts can easily overwhelm, but with the correct input and plan, there is always a route forward. A professional legal advisor ensures a smooth process and though it is a financial investment, there are ways to alleviate this strain too.
