I am stuck in huge debts in the form of EMIs
5 months ago
I'm stucked in huge debts in the form of EMIs and some from friends and colleagues. Unfortunately I failed to pay them. Those got serious issues for me and I lost my employment as well. I lost everything due to this worst situation. I found no alternate to deal with the situation. In order to stay away from this circumstances I absonded from the society and changed my mobile number as well. I never been in touch with anyone. I want to clear this out and want to start doing a new job and want to clear all my debts slowly. But if I join in any new company I'm afraid of my financial creditors may know my adress and my employment details and they may come there and will create issue there. I may lost my job also. How can deal this this situation and how to pay back my debts and how to get my trust and my people back to me. Please advise.
Lenders are not legally obliged to settle a debt lowering your outstanding debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own if your pocket permits to repay the entire outstanding at a time for one-time settlement of dues, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with chargeable fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Finally, when you settle a debt with a credit card company, your account is closed once the settlement is complete. So you could potentially have no credit facility to use a credit card further owing to your poor credit score. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward. Further, If you are planning to conceal or hide the change of new address from the Bank to avoid harassment from the debt recovery agents, then you are going to face the worst consequences. The bank can initiate both civil and criminal suits for recovery of loan from the Borrower. In case the Bank finds the borrower not traceable or absconded from the current or recorded address, then the Bank may issue a Look Out Circular(LOC) to prevent the borrower from leaving the country being a defaulter of loan. Public sector banks have been included in the list of authorities permitted to issue LOC from October 4, 2018 only through managing director and chief executive officers. A Look-out circular can be said to be a coercive measure adopted by the Authorities to restrict and regulate the movement of persons, who are accused of cognizable offenses, and in certain exceptional circumstances can be issued against guarantors/witnesses as well. In the given situation, both the borrower and guarantor of the loan may face severe consequences once an LOC is issued against them by the concerned authority.