Debt Collecting Procedure
There are usually quite a few mystifications regarding debt collection procedures. Some people feel the credit card debt collector could call demanding payment at any time. Others believe they will be placed behind bars if they do not repay. Is this true? As a matter of fact, debt collection agencies are often significantly limited by law.
Sending Demand Letters Towards the Debtor
Debt collection commences with a Demand Letter. The collection agency sends out a boiler-plate template, rather than individually-tailored, notice telling the debt or how much he or she owes. This gives the debtor a deadline for repaying before the agency will move forward with collection action. Your letter does not state what this action will be, nevertheless this action will most likely involve additional phone calls and harassment from collection agencies.
Making Collection Calls
If the collection agency can’t find repayment after sending a couple of letters, it isit’s going to move forward along with phone calls to the debtor’s home, cell phone, or even at work. With these calls, a new representative may offer an explanation for the debt owed along with an effort to collect payment.
Occasionally the collector negotiates with the debtor and accepts a smaller sum than what is owed, however, it depends on the size of the particular debt, and the debtor’s capability ability to repay. Contact Hedtke Law Group for guidance with handling harassing creditors.
Reporting For You To Credit Bureaus
Although a Chapter 7 bankruptcy will appear on your credit history for 10 years, your credit rating will begin to improve as time goes by and you re-establish your credit. Your credit was probably already affected considerably if you had late payments or any wage garnishments or lawsuits. When a person files for bankruptcy it is usually due to an overwhelming amount of debt. Although most individuals find it hard to confront having to file, there are many benefits to handling your debt in this manner. Whether you file a Chapter 7 or Chapter 13, there are specific benefits to each. One immediate benefit for either type of filing is that your creditors are required to stop contacting you at once, upon being notified of your filing. All legal actions, repossessions, foreclosure proceedings, holds on your bank accounts or wage garnishments must stop as the bankruptcy process goes through. That means relief for you – from the stress and worry you have been living through. Along with the advice of a caring and dedicated Rancho Cucamonga bankruptcy attorney, you can then take the needed time to evaluate your personal financial situation and decide what your best legal options may be.