One of the most common reasons why people file bankruptcy is to stop harassment from debt collectors. Debtors who file for protection should be aware of their rights and how to protect them. With a large number of people struggling during these hard economic times, debt collectors will do whatever it takes to collect payment.
Households around the country have enough pressure to deal with including rising gas prices, higher food costs, and trying to keep up in affording other necessities. It becomes more of a challenge to make payments on bills such as credit cards, medical expenses, and other household financial obligations. Enough stress and pressure can lead to bankruptcy, but this can be a good thing in helping you get back on track.
Even if you have tried to negotiate a payment with no success, they’ll call you at home or work, send threatening collection letters and you have come to a point where you are tired of it and have ignored them. One aspect includes debtors understanding their rights when it comes to debt collectors; even if they do not break a law, there are boundaries they may cross that can still have debtors feeling uncomfortable or harassed.
Debt collectors have been known to use unfair tactics they think they can get away with using on debtors. When you are educated on what they can and cannot do, you may be able to report them. The Fair Debt Collections Practices Act offers pertinent information debtors should know about harassment from debt collectors. You can also contact your bankruptcy attorney to obtain legal advice on handling debt collectors.