What to Do When Debt Collectors Come Knocking

If you’re looking bankruptcy in the face as debt collectors are knocking down your door, there are some specific things you should and should not do. Hiring a bankruptcy lawyer is one of the best ways to ensure you are protected whether you’ve got a lawsuit filed against you or are dealing with debt collections. The following are some action items to get you started.

Understand Your Rights

The first thing you should speak to your lawyer about is what your rights are. Consider discussing the Fair Debt Collection Practices Act. It gives an outline of what your consumer rights are so you can stay protected against predatory tactics collections agencies often use. For example, your lawyer can help you determine what communication is fair between you and the debt collector. The collectors cannot mislead you at all, including threatening arrest.

When you know these rights, you can begin to collect evidence against the debt collectors, file a complaint against those who broke the law and could possibly have your debts erased altogether.

Don’t Pay Up

When you have a debt collector breathing down your neck, you might feel inclined to just pay up and get it over with. The problem with doing this is acknowledging your debt can actually have negative repercussions. For example, the debt might be past the statute of limitations. If you pay on it, the statute will reset, which could lead the collectors to file a lawsuit against you.

Instead, gather all the information you can from the debt collector and let him or her know you’ll be in touch. You should ask for a validation letter, gather your debt records and write down any and all communication had with the debt collector. Give this information to your attorney so he or she can ensure everything is legal, as well as guide you in the next step that’s right for your situation.

Research Bankruptcy

Some situations simply call for bankruptcy. While it’s probably not your number one choice, some people with debts they can’t take control of might find it their best choice. Fighting multiple debts could cost you a lot of time, as well as more money, and essentially put you into more debt. A Chapter 13 or Chapter 7 bankruptcy could end up being the less expensive option and could also help you get back on your feet financially again.

Contacting Your Bankruptcy Professionals

You don’t have to face debt collectors alone, and you shouldn’t try. If you have debts that are taking over your life, contact a bankruptcy lawyer in Melbourne, FL to learn more about how he or she can help you get out of the situation.

Thanks to the Law Offices of Arcadier, Biggie & Wood for their insight into bankruptcy law and what to do when collectors come.