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Walking Away From Debt

Walking Away From Debt

: Richard West Law Office

walking awayIf you have problems with your debts the idea of simply walking away from it all can be tempting. No more suffering with the anxiety of “how will I pay?”, just walk away without paying. While some will tell you that you can legally get away with not paying your debt, there are some things to consider about this suggestion.

Considerations

First, understand that debt collection laws are both federal and state level. The federal laws protect consumers through the Fair Debt Collection Practices Act, but these laws are meant to guide creditor behavior. States have varying laws about collection, some of which outline rules for the time period in which a creditor can collect. Depending on which state you live in, you very well could walk away from your debt. However, this is generally only done after the statue of limitations has expired, which is generally four to seven years from the time of default. That is a long time to dodge collectors and let your credit suffer.

Also, credit reports will reflect your nonpayment of the debt, but only for up to seven years. So if you aren’t planning on needing new credit or even having good credit for things like renting a house or car, the credit damage you will suffer under nonpayment may not interfere with your life. On the realistic side, letting your credit tank due to purposeful nonpayment is not a solid financial strategy. There are solutions for managing debt in a manner that is affordable to your budget, that will also protect your credit. Your bankruptcy lawyer in Cincinnati can discuss all the solutions from consolidation and negotiation, to liquidation or restructuring.