In Tennessee and across the United States, people who are experiencing severe financial challenges may need to contact an attorney regarding debt relief. Delinquency in mortgage payments and credit cards may lead to a constant bombardment from creditors attempting to collect payments. A debtor may have the ability to stop creditor harassment by taking the right legal steps. A person who receives a court summons or official complaint from a creditor needs to respond promptly.

Otherwise, the borrower may learn that their wages are being garnished. Plus, the collection agency may freeze the debtor’s bank account. Although a response is necessary to prevent legal mishaps from occurring, the correct answer is also a necessity. A debtor should not admit they are liable for the debt because the plaintiff must prove that the borrower owes the money. A debtor owing $5,000 in credit card debt has the right to insist that the creditor provides a detailed account of every transaction made on the credit card.

Another thing to consider is the state’s statute of limitations. A debtor may not want to make payments if the statute of limitations is about to expire. If the borrower makes a small payment, the timeline starts again, which means that the statute of limitations is extended. Discussing the legal ramifications with a lawyer may give a debtor a clearer vision about what to expect and how to tackle the problem.

Filing Chapter 13 bankruptcy may provide the answer for a debtor who wants a fresh financial start. This type of bankruptcy might help a borrower stop foreclosure proceedings on a home and manage payments to creditors. Once a person files bankruptcy, a creditor must stop harassing the debtor for payments. In the meantime, the debtor has a chance to create a budget and a plan.