At the same time, you need to be aware that the creditor does have the right to pursue these remedies there are some risk of financial reprisals when a debt goes unpaid. It just doesn't happen very often. U.S. bankruptcies are being filed in record numbers, and often for relatively small amounts of debt. Many consumers, strained by the fear of an unknown future, perceive bankruptcy as a way of relief. The 7-step recovery plan outlined in this report has helped thousands avoid bankruptcy and turn things around.
Size Consider the size of the debt.
The smaller the outstanding balance, the greater your odds for success because it becomes less cost effective for a creditor to pursue. Most creditors will not devote a lot of effort to collecting just a few hundred dollars. However, if the amount is less than two hundred dollars, a creditor may not even devote the effort to negotiate. You also must consider the age of the debt and its status. Eventually, a creditor will give up an attempt to collect on a debt, and in order to gain some financial benefit will write it off as a loss and take a tax deduction.