Unfortunately, it is becoming increasingly common to find ourselves with a debt that has arisen. It could be that phone we bought a long time ago, the credit we took out to plug some holes or even the mortgage.
Life takes many turns and people's circumstances can change a lot from one month to the next, so at Audacia Abogados we explain what you need to know to face this unpleasant moment.
Nowadays, many companies have appeared, debt collectors (of different origins such as consumer credit, pawnbrokers, pawnshops, etc.) that do not stop harassing us and frighten us in our day to day life. So here are the steps you need to know if someone is claiming a debt from you.
1. Make sure that the debt exists. There must be a document that you have signed that commits you to having to pay an amount of money. Don't be conned by fraudsters who take advantage of trust.
2. Check that the debt is still outstanding. This means that you should check the period of time for which it was established and whether it is possible that the right to demand it is time-barred.
3. Find out if the right person is asking for it. Often it is not debt collectors but fraudsters with no claim against us who call us because they have obtained our details on the Internet. You have to be very careful when it comes to finding out if they are really people with whom you can deal with your debt or not.
4. Ask for a payment plan. Don't think that just because you are in debt, all is lost. You can reach an agreement with your creditor to pay in more comfortable instalments that will help you withstand the pressure without endangering your family finances.
What do I do if I am threatened with repossession of my house or car?
The first thing is not to panic. It is normal for your creditor to try to put pressure on you, but you should know your rights. If you have a debt, normally to be able to seize one of your properties there has to be a judicial procedure (not if you have signed a contract authorising this, so you should contact a lawyer immediately), where you will be able to defend yourself.
However, you should know that if you really have the debt and you do not have a legal excuse for not paying it (such as having already paid it or if it is time-barred), you will be ordered not only to pay the debt, but also the interest and the costs of the proceedings.
What do we recommend if you have a debt?
Contact us so that we can assess your situation and prepare the best response. With the right legal advice you can avoid increasing your debt and entering into a debt collection procedure. Don't let it pass you by and call us.