WHAT TO DO WHEN A DEBT COLLECTOR SUES YOU

            Any legal discussion dealing with debt collectors should begin with the Fair Debt Collections Practices Act (The Act or FDCPA). The Act covers a very large subset of all debt collectors, namely, third party debt collectors for consumer debt.

The first thing you must do when a debt collector calls is to inquire if indeed they are the creditor themselves–such as the actual doctor’s office or hospital business office itself. They may be from a third party collection agency.

Next it is important to determine if they are trying to collect on a real debt or fake debt. As of late, this has become a serious problem. Although there are also many legally and ethically appropriate debt collection firms, many debt collection firms are notorious for operating outside the strictures of the FDCPA. Even with the many protections provided by the FDCPA, some debt collection efforts become too much even for the most resilient debtor.

TAKE STOCK OF YOUR DEBT

            After determining whether your debt is legitimate, you should determine your overall debt. You can obtain a free credit report, and it pays to make sure that all of your information listed is correct. It is best to check your credit report at least once a year to make sure you are not the victim of identity theft.

If after review you find that you cannot realistically pay down your debt to a level you are comfortable with, you should contact a consumer rights attorney who can explain your options; this may include evaluating bankruptcy options. 

FILING FOR BANKRUPTCY

Bankruptcy is a federal law that provides the ultimate trump card for almost all debt collection activity. A Chapter 7 allows debtors to get rid of their dischargeable debt without further payments. A Chapter 13 allows debtors to eliminate dischargeable debt while paying  nondischargeable debt such as taxes, child support, student loans. As such, there are extremely few situations where a debt collector would not be stopped in their tracks if the debtor filed for bankruptcy.

Experienced bankruptcy attorneys understand the larger legal structure of debtor-creditor rights and responsibilities. They know what creditors are able to sue for, how to go about defending those claims and ensure that their clients’ rights are scrupulously protected. They understand whether a debt is unenforceable due to statute of limitations or if the creditor would not be able to obtain jurisdiction over you. Once you retain an attorney, they will stand between you and the debt collectors. Depending on the action plan that you and your attorney decide upon, your attorney may try to negotiate the debt down to a reasonable level, work out a payment plan or deal with the creditor through a bankruptcy proceeding.

GET LEGAL HELP

            If debt collectors are harassing you, it pays to know your rights and to have an aggressive, experienced advocate that knows how to deal with them both legally and practically. The attorneys of Long & Long, P.C. have decades of experience in thousands of bankruptcy cases. Few law firms can match the dedication, professionalism and experience of Long & Long, P.C.. In fact, Attorney Martin Long is a former Trustee for the U. S. Bankruptcy Court. You can contact us by calling (303) 832-2655. 

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