Owing a significant amount of debt can be stressful, and the constant contact from creditors only increases your stress levels. Unfortunately, the calls and letters are one of the consequences of having past-due balances. While your creditors do have the right to seek money from you that you owe, there are limits to what they can do.
It may be helpful for you to learn about what you can expect from debt collectors. This can help you understand if you are experiencing harassment, and what you can do if their behavior steps over the line. While debt collectors are annoying, you do have the right to take steps to make this contact stop once and for all by filing for bankruptcy. This will also allow you to deal with your debt in an organized manner.
The role of debt collectors
When a California consumer owes money to a creditor, that company or organization may seek payment in several different ways. They may call the debtor and request payment and send letters, but eventually, they may turn the account over to a debt collector. Creditors may hire third-party debt collectors to attempt to collect on overdue accounts. Some of the things they are not able to do include the following:
- They cannot harass you. This includes using profane language, calling late at night, threatening you or releasing your personal information.
- They cannot show up at your place of work and demand payment. They may attempt to call you at work, but they must stop if you ask them to do so.
- They cannot arrest you, because they have no legal power to do so. They also cannot pursue payment for something you do not owe or already paid off.
There are laws in place that protect your rights as a debtor, no matter how much money you owe. If you file for bankruptcy, the automatic stay will go into place, which will halt all creditor contact.
When is bankruptcy right?
If you want to learn how you can make contact from creditors and debt collectors stop once and for all, you may want to explore the option of filing for bankruptcy. This allows you to deal with certain types of debts free from harassment, phone calls and continued attempts to collect what you owe. This legal process allows you the opportunity to reclaim your financial security and build a better future.