If you are having trouble paying your debts in Tennessee and have falling behind in payments, your creditors will aggressively approach you to try to get you to pay. At this point, you may be thinking of filing bankruptcy, but you may have another option. You can try to negotiate a settlement with your creditors.

According to the Consumer Financial Protection Bureau, you need to gather some information before you go into negotiations. You should make sure you have a repayment plan set up. Know how much you can afford to pay and when you can pay it. You should also be realistic. Make sure you can stick to any agreement you make.

You should also make sure you have all the correct information on the debt, including the creditor’s name and the balance owed. If you have any doubts that you owe the debt, you should first get proof of the debt.

You can then contact the creditor and start negotiating. Explain the plan you have created and what you can pay. In addition to negotiating the payment, you can also ask that they stop collection attempts and report the account as paid on your credit report. Make sure if you do reach an agreement that you get it in writing before you pay anything.

You may need help with the process. There are debt settlement companies that may be able to help or you can seek legal advice. It may take multiple attempts to reach a settlement, but if you want to avoid further collections and do not want to file bankruptcy, then it is your best option. This information is for education and is not legal advice.