Even the most frugal residents of Louisiana can develop financial difficulties. Many people have no emergency savings, and the start of a debt spiral could be only a job loss or an unanticipated medical crisis away. When this happens, it is only natural for a person to evaluate the situation and consider seeking debt relief.
Debt settlement on an auto loan may relieve the crisis, but successfully negotiating such a deal may be challenging. A debt settlement company can handle the process, but the individual can achieve same results. A debt settlement company collects loan payments from the vehicle owner, allowing them to accumulate until the amount is enough to offer the auto loan provider a settlement.
To avoid paying someone to do this, one can negotiate with the loan company directly. However, settlement negotiations will only be considered once the account is in default, and stopping payments can have dire consequences. Auto loan debt is different from credit card or medical debts because there is security involved -- the motor vehicle. While no payments are made on the auto loan, nothing stops the lender from proceeding with steps to repossess the vehicle.
Louisiana consumers who are experiencing financial difficulties may not realize that trying to achieve debt relief by negotiating a settlement on an auto loan can cause even more problems. Obtaining information on all the possible remedies may allow the individual to make informed choices. This information is available from an experienced bankruptcy attorney who can explain the manners in which the Bankruptcy Code provides protection. The lawyer can clarify the pros and cons of proceeding under the applicable bankruptcy chapters, and once the client has chosen the way forward, the lawyer can provide support and guidance throughout the proceedings that will follow.
Source: techfeatured.com, "Looking For A Debt Settlement With An Auto Title Loan", Nov. 10, 2016