Getting Out of Debt in Virginia
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Dealing with debt is hard. There are a lot of companies out there promising quick fixes, and it can be difficult to know who to trust. This page explains your main options and points you toward trustworthy, free resources.
For a thorough guide to all of your options, read Surviving Debt, a free digital book published by the National Consumer Law Center (NCLC). It covers everything from negotiating with creditors to bankruptcy.
What is debt settlement, and is it a good idea?
Debt settlement is when you try to negotiate (work out a deal) with a creditor to pay less than the full amount you owe. For-profit debt settlement companies often offer to do this for you, but debt settlement usually does not work, and it leaves people worse off.
What is debt consolidation, and should I do it?
The NCLC recommends exploring credit counseling or, if necessary, bankruptcy instead of debt consolidation.
Read more: Surviving Debt
What is credit counseling, and how do I find a reputable nonprofit counselor?
Credit counseling is when a trained counselor reviews your finances and helps you make a plan to pay off what you owe. The NCLC recommends credit counseling as a better option than debt settlement or consolidation.
The key word is nonprofit. For-profit debt relief companies are usually a scam. A nonprofit credit counselor is not trying to make money from you.
To find a legitimate nonprofit credit counselor, use one of these resources:
Can I negotiate directly with a creditor to lower what I owe?
Yes. You always have the right to contact a creditor yourself and ask to work something out. But be very careful. Never agree to a payment you cannot afford.
Before you try to do anything, read: Negotiating payment arrangements
What if a debt collector is contacting me or I've been sued?
Debt collectors must follow strict rules under Virginia and federal law. If you are being contacted by a debt collector, or if you have been sued over a debt, our guide on debt collectors and debt lawsuits explains your rights and what to do next.
Read more: Dealing with debt collectors, lawsuits, and judgments in Virginia
Where can I get free legal help in Virginia?
If you need a lawyer but cannot afford one, free help may be available. Call 866-LEGLAID (866-534-5243) or visit virginialawhelp.org/get-legal-help to find a legal aid office near you.