Debt collectors have a job to do and they often get paid based on the amount of money they are able to collect. Although there are some federal rules that limit the times a debt collector can call, what they can say, and who they can contact regarding an unpaid debt, they have a lot of freedom. They can contact a person who owes money just about every day by phone. They can send letters in the mail. They may even be able to call a person at work. Fortunately, there are some things a person who owes money can do to make it stop without having to pay the bill in full.
Negotiate
Collection agencies typically purchase debts from the original creditors. Since the person they are harassing isn’t their customer, they don’t have a relationship with them and don’t know anything about their relationship with the original creditor. However, because collection agencies often purchase unpaid debts for pennies on the dollar, they may have some room to negotiate. Agencies may be willing to accept less than the amount a person owes if they agree to pay that lower amount immediately. A bankruptcy attorney in Keller, TX may advise a client to try this option first.
Bankruptcy
Filing for bankruptcy protection gives a person a stay from creditor action. Once the petition has been filed by a bankruptcy attorney in Keller, TX, creditors are no longer able to contact the debtor. Depending on the chapter of the bankruptcy code a person uses and the type of debts they have, they may never have to deal with the creditor again. With chapter 7 bankruptcy, people who have a lot of unsecured debts like credit cards and payday loans may be able to have them discharged without needing to repay a penny. People who choose chapter 13 bankruptcy can pay their debts through the trustee so the creditor will have to contact the court representative, rather than the debtor, with any questions.
Before spending money they don’t have to pay old bills, a person with limited income should consult with the professionals at Law Firm of David S. Kohm. A bankruptcy consultation may provide them with options they didn’t know existed that will help them get out of debt quickly.
