One of the difficult things that debt problems can expose a person to is dealing with aggressive creditors and debt collectors. It is important to not underestimate the toll such dealings can take on a person.
There are a wide range of methods and tactics creditors and debt collectors use when trying to collect on a debt. Sometimes, creditors and debt collectors cross the line and engage in harassing conduct towards individuals who owe money on a debt.
An important thing to know is that creditors and debt collectors cannot simply do anything they want to collect on a debt. There are laws in place that establish protections for consumers against debt-collection-related harassment.
For example, there are a variety of different tactics third-party debt collectors are banned from using in their debt collection efforts by the Fair Debt Collection Practices Act. For a list of some of the tactics that generally run afoul of the FDCPA and for further information on the FDCPA, see this article.
Attorneys can help consumers who have been subjected to an FDCPA violation or violations of other debtor protection laws with pursuing appropriate legal actions.
Now, a creditor or debt collector action doesn’t have to cross the line into the illegal and/or harassing to impact a debtor deeply. There are many types of debt collection tactics that are generally perfectly legal that can affect major aspects of a person’s life. Some examples of such tactics include home foreclosure, wage garnishment and repossession of property that secured a debt.
Thus, when facing high debt, a person may desire additional protections against creditor and debt collector actions. One thing that can provide additional protections is filing for bankruptcy. When a person files for bankruptcy, it generally changes everything regarding what debt collectors and creditors can and cannot do towards the person. This is because filing for bankruptcy will generally result in an automatic stay being put in place. This stay puts a wide range of different limitations on creditor and debt collector action during the course of the bankruptcy.
Bankruptcy also has the potential to provide long-term benefits to debtors by helping them resolve their debt situation.
Bankruptcy isn’t for everybody. Individuals who are contemplating bankruptcy should have a discussion with a bankruptcy attorney about whether filing for bankruptcy would be an appropriate debt relief action for them.