Individuals’ writing off debt is a discouraging sign; a lot of individuals are out of work due to the declining economy. Before the economy got so bad, a majority of families had accumulated large amounts of debt that did not concern them because they knew that they would be able to come up with the finances to pay them off. Sometimes when certain situations in life present themselves, changes and upgrades have to be made; maybe a new baby is on his or her way which creates the need for a bigger vehicle and a home with more space. There are so many different situations that may arise such as a family member getting sick, and now you have to deal with expensive medical bills. These situations may not bother people that much because they feel secure in their jobs and know that money is coming in, no one ever plans on being the victim of a company downsizing or the economy declining and effecting them in such a drastic manner. When this happens, people are left wondering if creditors will take the debt that they owe and write it off.
Everyone who is dealing with debt problems wishes that their troubles would disappear and that the creditors would take the debt that is owed to them and simply write it off. Getting debt written off is not such a common occurrence as some wish it to be, but obtaining it is not entirely unattainable. In some cases, if the amount of debt is small, the creditors will not want to take the time to pursue it and may be more likely to write it off. Sometimes a court may make a judgment that the company can no longer apply interest to the balance, which may also cause the creditors to write off the debt. It is strictly up to the creditors’ discretion as to whether or not they want to write the debt off unless it is ordered by a court. Regardless of what an individual’s financial situation is, the debt they have obtained will remain their responsibility to pay unless it is written off. The situation almost always calls for the individual to pay off their debts, so individuals should not put a lot of hope into the creditors writing it off – 9 times out of 10 it is not going to happen.