If you’ve fallen behind on some of your monthly accounts, you probably know what it’s like to receive numerous phone calls per day from overzealous debt collectors. Sometimes collection efforts cross the line from persistent to harassing, but you don’t have to put up with it. There are measures you can take to stop creditor harassment, and you’re well within your rights to do so.
The Fair Debt Collection Practices Act
There is federal legislation in place which governs the practices of collection agencies known as The Fair Debt Collection Practices Act (FDCPA). This act prohibits collection agencies from harassing debtors in order to collect on a debt. Some of the practices prohibited by the FDCPA include calling you at work, calling you too early or too late in the day, addressing you in an abusive way or making threats, providing false statements, and adding unauthorized charges.
If any collection agency is guilty of any of these practices while dealing with your account, you can seek legal recourse. An experienced finance attorney can help you through this process. If a collector is out of line and their behavior is harassing, citing this law should improve the situation in most cases.
Settling Your Debt
As long as they work within the boundaries set by the FDCPA, creditors and collection agencies have the right to attempt to collect a debt that is owed you owe. The best way to stop collection efforts is to settle your debt with the creditor or collector. if you are unable to pay the debt in full, there are some other options available to you.
You may be able to set up a payment plan to resolve the debt over time. Collection efforts should stop as long as your payments are on time. You may also be able to settle on a payoff amount that is lower than the balance due in order to settle the account. A finance attorney can be a great asset in these cases as they can expertly negotiate terms for debt settlement that both you and the creditor are satisfied with. They can also address any dispute you may have regarding the account.
Filing for Bankruptcy
If you are unable to pay any amount of the debt owed, the creditor may use more aggressive efforts in an attempt to collect what’s owed. If they seek a judgment against you in court and win, they may be able to garnish your wages or seize other assets in order to be compensated. If you are delinquent on most or all of your debt, you could be facing some serious financial problems that can affect your whole life.
Filing for bankruptcy is the best option for some people in this situation. A bankruptcy filing puts an automatic stay on all collection efforts, including property foreclosures for a period of time. At least some, and possibly all of your debt will be discharged at the end of the bankruptcy, which means you won’t be responsible for repayment. An experienced bankruptcy attorney can help you to determine if you’re a good candidate for bankruptcy and which type you should file for.