All You Need To Know About Non Priority Debts

The Law Offices of Chang and Carlin guide individuals and families through their financial struggles, helping them make a fresh start through Chapter 7 and Chapter 13 Bankruptcy.

If you are in debt you're probably being harassed by people you owe money to (Your creditors) on a consistent basis. Before you start talking to your creditors, you'll need to sort out how much money you owe and who you owe it to. You'll also need to sort out which are the most urgent debts to pay and if you've got enough money pay them.

There are certain types of debts which need to be paid on urgent basis (priority debts) as the consequences of not paying them can be very serious. Therefore one needs to organize debts on the basis of urgency. In the view of expert Schaumberg bankruptcy attorneys, if you have the knowledge of priority and non-priority debts then you'll be able to organize your finances better.

Therefore, with the help of this article, let’s find out what are non-priority debts and the ways to deal with non-priority creditors.

Non-Priority debts

According to the experienced Chicago bankruptcy lawyers, there are certain types of debts which need not be paid on urgent basis. Such debts include-

·         Benefits overpayment

·         Credit debts such as overdrafts, loans, hire purchase, credit card accounts and catalogs

·         Student loans

·         Money borrowed from friends or family.

You can’t be sent to the prison for not paying the non-priority debts but, if you don’t make any efforts to pay without explaining then you may be dragged to the court by your creditors.

Ways to deal with Non-priority creditors

Maintaining good contact is the key to dealing with these creditors. If you are being bugged by the non-priority creditors then here’s what you need to do-

·        Don't ignore letters or phone calls from your non-priority creditors. Get in touch with them as soon as possible once you know there are problems paying them.

·        Write to them to explain why you're in debt, that you're trying to deal with your debts and that you'll contact them again shortly when you're in a position to know how much you can afford to pay.

·        Ask them if you can stop paying interest on your debts in the meantime. This is called freezing the interest.

·         When you write or speak to your creditors, make sure you explain your situation fully. If they know about your circumstances, they might be prepared to give you extra time to pay.

Reasonable Fees for Bankruptcy and Foreclosure Help for Illinois Residents + an Initial Free Consultation

These were some helpful tips that you can use to deal with non-priority creditors. However, if you still face difficulties dealing with the creditors you can always seek guidance from the expert Chicago bankruptcy attorneys at the law offices of Chang and Carlin.

Our goal at Chang and Carlin, LLP is to change your financial future. To book your appointment or get more information about Chapter 13 and Chapter 7 Bankruptcy in Chicago, contact us at 1-866-790-8601 or Request a Free No Obligation Bankruptcy Filing Consultation Today.

Disclaimer: The content provided by Chang and Carlin, LLP is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Foreclosure services, or Real Estate legal services, call our law firm at 1-866-790-8601 for a Free Legal Evaluation. Chang and Carlin, LLP serves clients in Chicago, Schaumburg, Joliet, and Warrenville.