For Borrowers Relentlessly Hounded by Debt Collectors, Bankruptcy Can Bring Peace and Quiet

Falling behind on debt payments is stressful enough as it is. But for all too many borrowers, the situation is made even worse by harassing debt collectors.


Collection agencies are paid by creditors to help persuade delinquent borrowers to pay up. For their work, they often receive a fee or percentage of any repaid debt.

As you might imagine, that gives collection agencies a strong incentive to do anything and everything they can to coerce borrowers into making debt payments - whether those borrowers can afford to pay or not.

Debt collectors are required to follow certain guidelines under the Fair Debt Collection Practices Act. However, with so many Americans defaulting on debts, more and more agencies are shirking the rules and resorting to outright bullying.

A recent article in CNN Money documented some of the worst instances of harassment: threatening to throw debtors in jail, take away their children, do harm to their pets or - in perhaps the most outrageous case - dig up dead relatives who were delinquent on their debts.

In many situations, bill collectors attempt to wear down debtors by calling incessantly at home and even at work. Sometimes they've been known to harass the wrong person about a debt that isn't theirs to begin with.

Often times, debtors are suffering from so much stress and guilt that they don't realize the harassment they are receiving from debt collectors may qualify as abuse. The truth is that collection agencies that don't play by the rules are breaking the law.

Debt collectors are prohibited from inflating debts, posing as attorneys, using offensive language, and threatening any kind of violence. And without a court order, they cannot make threats to garnish wages, repossess property or have a borrower arrested. By law, borrowers are not even required to communicate with collectors.

If you live in fear that every phone call will be another debt collector calling to hassle you about late payments and overdue bills, it may be time to seek outside help.

You may be behind on your debts, but you are still entitled to your rights - and respect - as an American citizen.

If debt collectors are making your life a living hell, bankruptcy can be your saving grace. When you file for bankruptcy, you put a legal stop to collection efforts - and contact with debt collectors.

With the pressure of collection calls lifted, many folks find that it's a lot easier to work out a repayment plan for debts. Whether you're behind on mortgage payments, credit card bills or medical expenses, bankruptcy can give you the time and the flexibility you need to get your family's finances back on track.

To learn more about what bankruptcy can do for you, contact DebtStoppers at 800-440-7235. Call us today to take advantage of a complimentary personal debt analysis with a professional bankruptcy attorney.

More Blog Entries:

As Paychecks Shrink and Debts Grow, Bankruptcy Becomes a Viable Solution for More Americans: January 2, 2013

Credit Card Debt Settlement Deals Typically Too Good To Be True: October 19, 2012

Additional Resources:

Debt Collection Horror Stories, by Blake Ellis, CNN Money

Federal Trade Commission Consumer Information: Debt Collection

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