By Emma Dylan
Everyone has gone through a time where they were a little behind on their debt payments. Perhaps the after tax cost of debt has finally caught up to you. Maybe you are experiencing a loss of income through no fault of your own. At the end of the day, there are millions of people who have been in your shoes. Luckily there is a path to freedom that has been able to help many individuals who have been in similar circumstances reduce or even eliminate entirely the after tax cost of debt for them and their families. If you believe it is time for you to reclaim your financial independence by taking control of your debt outlays then you should read on ahead.
Make Initial Contact with Creditor
The very first step to reducing or eliminating your after-tax cost of debt is to make contact with the creditor agencies. This can be done typically through one of two ways. You can either write them a letter or you can call them. The best option will depend on the situation for you. Some creditors will only acknowledge written information. It can be wise to pursue communication through written means so you can have a paper trail of your interaction with the agency in case there are any types of problems or issues at the end of the process. A nice paper trail can make it impossible for the agency to deny that they gave you a particular agreement.
Formally Issue a Complaint
The only way to start the official legal proceeding when it comes to debt collections is to issue a formal complaint. This acknowledges that all other means or avenues of recourse have been exhausted by both parties. You will want to have some legal counsel when you are drafting the formal complaint as there are certain pieces of information that must be included for it to be considered a valid legal document that can be upheld in court. After the complaint has been issued you will be sent to court. The circuit that you will be seen in depends on exactly how much the claim is going to be worth. In most areas any claim that is going to be made under the ten thousand dollar mark will be seen in the small claims court. Other amounts will have their own circuits.
Formally Serve the Complaint
Once the official complaint has been made you will need to make sure that both the debtor and creditors are able to receive a copy. The exact laws that regulate this step of the process will vary greatly depending on the laws of the state or country up in the time of the hearings. Typically at this point, both parties will be given a notice of Defence. This is a check that allows them to present evidence for their side in a court of whether or not the debt should be upheld.
Final Judgement or Payment Arrangement
At the end of the hearing if things are decided in your favor then you and the opposing party will come to an agreement for a type of payment arrangement to pay for the damages that you have claimed. These can include wage garnishment or even property seizure and will typically payout in a matter of weeks up to a full year. This way you. And know exactly when you will receive each payment and how much each payment will be made for when you receive them. Be sure to have legal counsel throughout the whole process to get the best outcome for you.
