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Legal Help Can Stall Debt Relief Problems

By: Nick Messe

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In these days of financial hardship, there are various demands on your income, some which you can simply not afford. When your monthly payments are more than your earnings, it becomes impossible to pay your bills, make regular payments on your credit cards, and keep your mortgage up to date. In such cases, your creditors may resort to tactics such as garnishment, foreclosure, or repossession.

When you cannot make your payments, a creditor may choose to go to court to recover their money. If the creditor is able to obtain a court order in his favor and you still are unable pay, the lender may petition the court to issue a Writ of Garnishment. This is an order to your employer to recover a fixed amount from your monthly or weekly wages and pay it to the creditor. Garnishment may be for repayment of a personal loan or possibly for payment of child support. In any case, you cannot avoid or defer the payment of such an order because your employer is legally obligated to honor it.

Foreclosure is a legal procedure initiated by a lender to take possession of the registered collateral security when the borrower defaults in payment. In most states the law permits seizure and auctioning off of the property only after obtaining an order from a court to that effect. A foreclosure suit has to be filed by the lender in the court for this purpose.

In a few states another procedure called strict foreclosure is permitted under the law. The lender can declare the borrower as a defaulter and take possession of the property under strict foreclosure. In both cases, the proceeds of the sale go first to offset the debt and the expenses of foreclosure. The balance goes to the borrower. In such a case the borrower has the option to pay up the debts and expenses incurred by the lender and again take possession of the property.

Repossession is a legal procedure by which the lender takes possession of the mortgaged property when the borrower fails to meet the payment terms of the mortgage. The normal practice is that the lender writes a letter reminding the borrower that he or she has defaulted in payment and requests the person to call on the lender to work out a plan for repayment.

If the response of the borrower is not satisfactory to the lender, he or she may go to the court and obtain an order for repossession. This can be quite serious, leaving the person without a home and a seriously damaged credit rating.

When you are confronted with the threat or likelihood of any of these legal procedures being used against you our your property, you should immediately consult with an experienced lawyer. You can usually avoid drastic action being taken against you - especially if you are prepared to work out an arrangement to bring your account up to date.

However, if there is no reasonable possibility that you will be able to satisfy your lender it may be time to file for personal bankruptcy. When it gets to that point, an experienced bankruptcy lawyer is the best one to advise you on the appropriate course of action.

Article Source: http://depositarticles.com/

At Legal Atlanta we offer immediate assistance with bankruptcy. We are Athens Georgia bankruptcy lawyers. If you are being harassed by creditors we can have the harassment stopped almost immediately. Call us at 404-559-1121.

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