What Is A Reinstatement?
In today’s economic world it is not unheard of to be laid off, have trouble finding a job, or be forced to take a job at a low salary. When these things happen, paying the bills on time becomes difficult if not impossible. If you do not pay your bills as they become due, the natural outcome is that the loan will go into default and the lender will try to collect what is due or take back the collateral that was pledged as security for the loan. If this is your situation, you have a couple of choices that will resolve the delinquency and get you back on track.
One thing to consider is to file for bankruptcy. Depending on the type of case you file and your goals you may be able to get rid of a large portion of your debt, which will free up your money to make payments on other things. Another option is to reinstate the loan, what this means is:
- Paying the back due amount to the lender, including any fees and costs associated with the default.
- Maintaining the account in a current status, by not falling behind once the account has been reinstated.
Most times a reinstatement carries with it the requirement that the entire past due amount be immediately paid, but there are some lenders who will allow you to cure the defaulted amount over a few months’ time. The type of reinstatement you work out will depend on several factors including the willingness of your lender to work with you, your pay history, and financial ability to make the payments. Some lenders are not open to discussion or negotiation, and this is where the help of an experienced debt management and bankruptcy attorney can help. We have assisted others with their financial needs and developed plans of repayment that work. Let us help you find ways to make your budget work, and to help you get a fresh financial start. Call us today to talk about your options, and learn how to get where you need to be to get out from overwhelming debt burdens.
For more information about managing debt and what you can do to get back on solid financial footing, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.