When individuals get behind in their debt obligations it doesn’t take long before the creditors start hounding the person for their money. These creditors are not concerned about how much money you owe to others or what personal problems you may have. Their priority is to collect their money. For the most part this will consist of constant reminder letters and then daily phone calls. If possible and they have the legal resources to do so they may start legal action. Some creditors can become overly aggressive with their collection attempts. There are rules that they are supposed to follow and these come under the Fair Debt Collection Act.
Keeping It Fair
Basically the rules state that harassing tactics are not allowed. They are not allowed to make threats that they cannot legally carry out. This act only applies to third party debt collectors. Often creditors who are not able to collect what is owed to them will hire, or sell off the debt to third party collectors. The Act does not apply to the in house collection departments.
It is important that you determine who is trying to collect your debt so you know what kind of control you can over their actions. A third party collector has to advise you that you have the right to dispute the debt. They must do this on their first contact with you. You have thirty days to dispute the debt otherwise it is considered factual.
Chances are you don’t have the funds to pay the debt anyway. Your best option is to discuss your bankruptcy options with a bankruptcy attorney in Houston to determine if this is the right financial move for you.