Loan Company Refuses To Negotiate. What Should I Do?

: Reese Baker & Associates

  Filed under: Loans

debt negotiation, negotiate, lawyer, attorney, bankruptcy, texas, houston, chapter,A common question for bankruptcy attorneys is from those who have taken out a loan from a “loan company” or another lender that is not a bank and subsequently hit a rough patch causing them to be unable to repay the loan. What is the best course of action for someone in this predicament?

The very first option would be to contact the loan company and explain the situation and try to make some kind of mutually beneficial arrangement to repay the loan over a longer period with lower payments or reduce the interest perhaps. If the loan company refuses to budge however, then you must resort to more drastic measures. Another option, although not always recommended, is to simply stop paying the loan and have the company initiate proceedings against you. If you are truly down on your luck and have no assets then even if they receive a favorable judgement from the court they will have a difficult time realizing any returns.

For this reason they will usually try to accommodate some kind of repayment plan. If this is the only outstanding loan or debt that you have, then the idea of going bankrupt is not likely your best option so trying anything that will get you some relief is advisable. If you do have other unsecured debts like credit cards or medical bills, you may be better off seeking bankruptcy protection after all. Speak to a qualified bankruptcy attorney to find out what you best options are and then proceed in that direction.