Home - CBSNews.com | What happens if a creditor refuses to negotiate your debt?
AI generated summary, Read the full article for complete information.
If a creditor refuses to negotiate, the original loan terms stay in force—interest rates, minimum payments and penalties continue to accrue—while collections activity may intensify, potentially leading to third‑party collectors, lawsuits, wage garnishment or bank levies, and further damage to your credit score, including charge‑offs that linger for years. Although a “no” early in delinquency limits immediate relief, creditors can become more flexible later, especially if the debt is sold or ages. When negotiation fails, you can still pursue alternatives such as working with a debt‑relief company for settlements, enrolling in a debt‑management plan through a credit‑counseling agency to lower interest and consolidate payments, or, in severe cases, filing for bankruptcy (Chapter 7 or Chapter 13). Acting early and exploring these options before a judgment is entered offers the best chance to regain control of the situation.
Read more: https://www.cbsnews.com/news/what-happens-creditor-refuses-debt-negotations/
#Creditor #Debtbuyer #Bankruptcy #Judgment
AI generated summary, Read the full article for complete information.