One of the top reasons that pushes people off the edge and into filing bankruptcy is the debt collector. Most collection companies work in a gray area, constantly breaking laws just because consumers don't know the rules. People that are tired of dealing with debt collection companies and obnoxious debt collectors use filing bankruptcy and the automatic stay to stop the craziness. Over the last few years, this group of individuals has become relentless in the methods they use to attack the debtor. It's common for debt collectors to violate the Fair Debt Collection Practices Act daily with no repercussions. Usually it takes a debtor filing bankruptcy to report it to their bankruptcy attorney to take further action against the collector. Many consumers are confused about what they're allowed and not allowed to do. The bottom line is they are not your friend and debtors need to remember this.
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Here are a few things that a debtor needs to know about debt collectors.
First of all, there are many restrictions on what they can and cannot say. Exaggerating and threatening the debtor on what might happen to them if they do not pay their debt is not allowed.
Second, they are not your friend. They act like they are trying to help you to come up with a compromise. All bets are off they just want your money.
Third, telling them sad stories about how you got into financial trouble does not matter to them. They get paid on a percentage of how much they collect and that's all they care about.
Fourth, they will do whatever it takes to make the debtor feel like a scumbag and feel guilty for not paying their bill. Trying to be condescending to the debtor is the way they think they will be able to get money out of you.
Fifth, the debt collection company you're speaking with might not even be the creditor you borrowed the money from. Many debts are sold, some times as much as three or four times, for pennies on the dollar. This is a business for them and the more they can collect from you, the more they make. If you feel the need to negotiate with one of these creditors, remember they have a lot of room to come down.
Sixth, many creditors feel if they're really nice to you, you will agree to a payment. The clue is when you don't have the money to give them they get very angry and become aggressive with threats. What happened to all the love?
And lastly, it's a common practice for creditors to threaten the debtor with jail time for not paying a bill. This is a complete lie. The only payments that could end you up in jail are court ordered maintenance or fine payments. Many times the debt the debt collection company is trying to collect on his past the statute of limitations for the state in which the debtor resides. Some of these creditors know they can't sue the debtor, so they harass them hoping to get something out of them. Creditors know that filing bankruptcy is the ace in the hole for the debtor and they would like to keep that secret. Once the debtor enters into a bankruptcy filing, the creditor will no longer be able to contact them to attempt and collect. If they have something to say they can call the bankruptcy attorney. Basically, it's game over for the debt collector. There are some debt collection companies that decide to push the limit of the law by continuing to try and collect while knowing the debtor is filing for bankruptcy. These collection companies need to be reported to the bankruptcy attorney immediately to file a motion against them in the bankruptcy court. Sometimes the only thing that will stop these bottom feeders is the power of bankruptcy.
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