DebtSmart.com Sunday, May 26, 2024

What If a Debtor Turns Mad?

by Kevin Craig
Kevin Craig Kevin Craig is a financial writer with various finance related Communities. He has been providing advice on debt relief since 2007. Because of his advice many people are now living their life without debt. You can get in touch with him at kevin.craig672@gmail.com.

These days, economic turmoil is no doubt turning people financially challenged. Though some people somehow manage to get out of this dire situation, some go to the very end and never become able to come back in a normal life.

This may pop up a very significant question in a debtor’ mind: Is a debtor still obliged to pay off his debt if he turns mad? Well, you cannot conclude by an experiment. However, if you take on the mask of pretence, you may face disastrous legal consequences in future.

Actually, a debtor is always obliged to pay off his debts regardless of his psychological condition. Lenders, in order to get back their money, often take the invalid path. So better, you keep the cool of your mind and step ahead toward your debt free journey.

If there is a co-signer, he/ she will be solely responsible to pay off the debt in case the debtor goes mad. For this, anybody should consider twice before acting as a co-signer. In fact, only co-sign if the person is an immediate family member.

If a debtor turns mad who doesn’t have a friend or a relative to hold the situation, may face worst circumstances. If the debtor borrowed against his home and has many payments left, the lender would no doubt foreclose the property. However, if somebody manages the debtor’ debts on his/ her behalf, the property will take a sigh of relief. The person (who should obviously be a reliable one), may explain the debtor’ poor condition to the creditors and find out a humane way to solve the crisis.

If we sum up, a debtor has to pay off his debts under any psychological condition. As there are many debt relief procedures, the representative of the debtor may undertake any reliable way to solve the debt issues so that the debtor may retain his property. However, it is sad that the debtor may not regain his mental stability, which the debt problem had caused.

Though economy is tough enough and many people are arriving at the bank of insanity, a debtor should not lose his temperament and continue to make payments toward his debt. If possible, a debtor should politely discuss his financial condition with his creditors, and solve out an easier way to pay off his debts. It’s no doubt much better than to escape.