Myths About Debt Collections and Bankruptcy

Posted By The Carlson Law Firm || 28-Sep-2012

Mounting debt can be overwhelming. Whether you’re in over your head because of piling medical bills, loss of income or looking for debt settlement solutions, understanding your rights is important. What can you do when it comes to debt collections, chapter 7 bankruptcy and chapter 13 bankruptcy?

We delved into tips offered by the BBB and the Federal Trade Commission to help dispel myths about debt settlement, debt collections and bankruptcy in Texas.

Myth #1 Debt Collectors Can Contact You Any Time

According to the FTC, debt collectors may not contact consumers at inconvenient times, such as early in the morning (before 8) or late at night (after 9). In addition, collection agencies are not permitted to contact consumers at work, if they are told by the consumer not to do so. Consumers can inform agencies they are not permitted to take calls at work, either in writing or orally, the FTC notes.

Myth #2 Debt Collectors Can Contact You as Many Times as They Want

While the FTC says it may be beneficial to speak with a collector, understand the debt they are attempting to collect, that doesn’t mean collectors can call and harass consumers day and night. Instead, a consumer that does not want a collector or agency to call them any more can contact them in writing and inform them to stop calling and contacting. The only reason that collector would be able to contact a consumer after receiving correspondence as noted above, is to inform the consumer about future action (like if a lawsuit will be filed) or to inform the consumer that they will no longer contact them.

Myth #3 Debt Collectors Always Present Correct Information Regarding a Debt

The information a debt collection agency has regarding what and who a consumer owes is not always correct, the BBB reports. As a result, consumers who are called by a debt collection agency should always confirm and research the debt presented. In addition, it is imperative that consumers research the debt collection agency calling them and verify representatives and companies are who they present themselves to be.

Because identity theft is rampant, researching debt can establish whether debts are legitimate. Check for errors, whether in regards to a name or other inaccurate information, as well as inaccuracies in the debt amount.

If you are overwhelmed by debt and considering your financial, debt settlement and bankruptcy options, call our Bankruptcy lawyers in Temple, Killeen, Waco and statewide Texas at 254-633-2983, contact our Temple chapter 7 attorneys online or visit one of the 10 office locations for our chapter 13 attorney in Temple and across Texas for a free consultation today. We care. We can help.


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