Debt can sneak up on Florida residents so slowly that by the time they notice they are in trouble, it is too late. Creditors are sending letters and calling in an attempt to receive payment despite the fact that the debtors are unable to pay. Fortunately, it is possible to stop harassment by your creditors through the filing of a bankruptcy.
Missing one payment on a mortgage, car or student loan does not mean that the individual is in default. Consecutive payments must be missed before the status is changed and creditors start to make contact. Late fees, and possibly other penalties, could be assessed as well. A consumer’s credit score is then impacted once negative reports are sent to the credit reporting agencies.
At some point, a mortgage lender could look to file a foreclosure proceeding in order to sell the home to pay the debt owed. Other litigation could be filed to recover student loan payments, and a vehicle can be repossessed. Many sources will offer advice regarding how to deal with defaulted loans, but their advice does not work for everyone. Some people struggle just to keep food on the table and the lights on, so for them, there is no way to take any of the suggestions.
In addition, those sources can also attempt to discourage individuals from taking advantage of one way that is certain to stop harassment by your creditors: bankruptcy. Filing for bankruptcy can provide Florida residents with the opportunity to find debt relief and free up income so that their financial stress is relieved. Furthermore, having a fresh start is often what is needed in order to get back on track financially.
Source: wisebread.com, “You’ve Defaulted on Your Loan. Now What?“, Dan Rafter, April 6, 2016