Sometimes a creditor will refuse to believe the debtors promises of payment. This often happens if the debtor has been unable to keep up with a previous payment agreement. In that case, creditors might be persuaded to accept a new repayment plan if the debtor offers to include a penalty clause in the agreement. Such a provision states that if the debtor defaults in making any of the agreedupon payments, they owe the creditor an amount of money in addition to the original debt. The amount of such a penalty should be sizable (probably no less than $100.00), to serve as a real incentive for the debtor to keep current on their payments. Offering to include such a penalty clause demonstrates their honest intent to pay.
Speak to an Experienced Creditors Rights Attorney Today
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified creditors rights lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local creditors rights attorney to discuss your specific legal situation.