Tennessee Bankruptcy Helps Avoid Psychological Trauma Caused by Aggressive Bill Collections
Dozens of phone calls a day, threatening messages on the answering machine, stacks of letters in the mailbox - sound familiar? It's no wonder that the typical debtor experiences some degree of psychological trauma from the harassment of collection agencies.
Debt collection companies don't care about feelings. They don't care that the economy has forced Americans into debt. All they know is that a barrage of phone calls is an easy way to get debtors to surrender into coughing up cash they can't afford.
A recent Wall Street Journal story offers advice on how to limit headaches caused by the most common collection tactics. That's all well and good, but Tennessee bankruptcy lawyers believe there's an even better way to limit psychological damage - avoiding the problem in the first place.
Did you know that when you file for bankruptcy in Tennessee, harassment from collection companies stops immediately? The moment your case is opened, agencies are notified to cease all direct communications with debtors. From that point forward, the only contact between you and bill collectors will happen in court.
When most people think of filing for bankruptcy, they think of eliminating debt. But that's only one benefit of filing. Bankruptcy also has the ability to stop foreclosure, end wage garnishment, and, yes, even put a halt to harassing phone calls and e-mails. In short, bankruptcy can be the breath of fresh air you need.
Many debtors make the mistake of believing bill collectors will eventually give up. Not so. To understand debt collection agencies, you must understand their incentives. These people are being paid to wrangle up money for lenders. They don't care about your well-being. They don't want to negotiate with you, strike a deal, or find a debt management solution simply because it doesn't benefit them to do so.
Often times, the harassment becomes so unbearable that consumers make a minimum payment just to (temporarily) quiet the relentless collection calls. Unfortunately, this payment often stretches finances enough to lead to more debt, more interest and fees, and more phone calls.
The aforementioned Wall Street Journal article makes some interesting points. In it, a man getting up to 50 collection calls a day employed a caller ID machine with a ring controller to get some peace and quiet from debt collectors. By freeing himself from harassment, he was able to think clearly enough to achieve a 69% reduction in $54,000 of credit card debt. But most people aren't so persistent - or so lucky.
To make matters worse, many Tennessee debtors are falling victim to debt relief companies. These businesses claim to work on your behalf to lower debt, but they won't do it for free. Again, it always comes back to incentives. Just like bill collectors, debt management companies get paid when you pay up. This can mean upfront fees or paying premiums of up to 20 percent of your outstanding debt.
You need a debt relief plan that protects your interests, not the interests of an outside party. This is where Tennessee bankruptcy comes into play.
Bankruptcy was created with the consumer in mind. With a Tennessee bankruptcy filing, you can get some or all of your debt eliminated with no strings attached. Now that's a way to find peace.
More Blog Entries:
Tips for Refreshing Finances in 2012 with Tennessee Bankruptcy: January, 1 2012
Limiting Psychological Damage From Collections, by Michael Casey, The Wall Street Journal