The Stages of Debt Delinquency and How to Avoid Them (Part 3)

October 10, 2013

To avoid the vicious cycle of debt delinquency, contact an experienced Colorado debt relief lawyer who is experienced at dealing with creditors directly.

To avoid the vicious cycle of debt delinquency, contact an experienced Colorado debt relief lawyer who is experienced at dealing with creditors directly.

Concluding the three-part blog The Stages of Debt Delinquency and How to Avoid Them, the following outlines the final stage of the vicious debt delinquency cycle, as well as what borrowers can do to stop the cycle, protect themselves and achieve a financial fresh start.

  1. Final stage of delinquency: Creditors take legal action against you – If creditors have not been able to get a hold of you, and no resolution has been achieved in terms of the outstanding debt, they will likely go to court to try to have your wages garnished, to repossess your assets, to freeze your bank accounts and/or to file a lawsuit against you. While the thought of going to court may be daunting, if you don’t show up (or if you don’t have a representative show up on your behalf), the court will likely rule in favor of the creditor. Once this ruling has been handed down, there is little you can do to reverse it.

Stopping the Debt Delinquency Cycle Before It’s Too Late

While the end stages of debt delinquency can be harrowing for borrowers who are struggling financially, it’s important that they know that:

  • They have legal rights.
  • They can take action to stop this cycle well before it reaches the final stages.
  • Working with an experienced Colorado debt relief lawyer can significantly improve their predicament.

Colorado debt relief lawyers will be your advocate against aggressive creditors, and they are experienced at negotiating debt settlements that can stop the vicious cycle of debt delinquency. For some borrowers, especially those who have lost their jobs, who have multiple delinquent debts and/or who have been unemployed for a significant amount of time, Colorado debt relief lawyers can help them initiate a bankruptcy case, which can:

  • Stop creditors from contacting them altogether.
  • Prevent creditors from taking any legal action against them (which will prevent wage garnishments, repossession of cars or other assets, foreclosure proceedings from being initiated on one’s home, etc.).
  • Discharge a number of their debts (such as credit card debt, medical bill-related debt, etc.).
  • Give them a financial fresh start.

Colorado Debt Relief and Bankruptcy Lawyers

If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our Clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible.

For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us some details about your situation by clicking here.

Categories: Bankruptcy, Blog, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Debt Delinquency, Debt Relief, Filing for Bankruptcy