How to Handle Debt Collectors

Dealing with Debt Collectors

We are thick into the recession and more and more people are hearing that unwanted phone call or knock on the door from debt collectors. Contact with a debt collector can often be a very stressful stituation. Many individuals do not handle conflict well and simply try to avoid their debt all together. This method will only buy you time since a debt collector will eventually seek satisfaction through the courts. Once a debt collector has obtained a judgment against you, you can bet they will garnish your wages, slap a lien on property you own, or take other actions such as exercising on writs of execution. Properly handling debt collectors can mean the difference between financial freedom and further despair into the rabbit hole. This article describes the dos and dont’s of dealing with nasty debt collectors.

The Don’ts

  • Never Divuldge Your Bank Account Information: No matter what the circumstances, you are never required to disclose your bank account information to a creditor. Be very wary of any creditor who makes it appear you have to hand over your bank account information so they can set up automatic withdrawals. Some creditors will cite a policy which requires you to set up autmatic transfers for future charges since you have been delinquent. Be extremely cautious in theses situations. If you have already given a creditor your account information, make sure you monitor your accout and challenge, if necessary, any unapproved withdrawals or debits.
  • Disclosing Your Intent to Apply for a Loan: Many individuals attempt to clean up their credit to be eligible for futher lending by calling creditors and attempting to settle their debt. In these situation it is almost never a good idea to disclose to a creditor your intent to apply for a future loan. Many debt collectors may use this information against you as a means of putting pressure. Instead, simply ask the debt collector to verify the amount of the loan in writing, they are required to do so. This way you will konw exactly how much you owe in comparison to how much you can actually pay you may still be able to negotiate your debt down.
  • Post Dated Checks: Many debtors will send debt collectors post dated checks as a means of getting a creditor off their back, if nothing else for a short period of time. Why is this a bad idea? Because many debt collectors may deposit such checks early, and many banks may allow this, Meaning you could be stuck with all kinds of over draft fees and other bank charges if you don’t have the funds immediatly in your account. There are also potential criminal charges that can result from bouncing checks. Instead, only send checks if you know you have the funds available immediatly.

The Dos – Speak with a Utah Bankruptcy Lawyer

Just because you owe someone a lot of money doesn’t mean you don’t have rights. Debt Collectors must meet certain requirements under the Fair Debt Collection Practices Act when it comes to how they attempt to collect debts from you. You deserve to be treated fairly and respectfully by creditors. Over the past few years, complaints against debt collectors have dramatically increased. To better understand your rights, speak with an experienced debt elimination or bankruptcy attorney.

If you are getting hounded by debt collectors, we can help. You may be eligible for a Chapter 7 or Chapter 13 bankruptcy. Once the initial bankruptcy petition is filed, Creditors must immediately cease their attempts to collect on you. Even if you are not eligible for bankruptcy, the best thing for you to do is consult an attorney before you make a mistake with a debt collector that could have lasting consequences.

To speak with one of our Utah Bankruptcy Lawyers today, call 801.413.1753.

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