- October 26, 2012
- Posted by: Richard Feinberg
- Category: Debt
Financial hardships are stressful enough, but when bills start piling up and debt collectors begin calling it can be an overwhelming situation. However, there are some important things you should know about how to deal with creditors the right way.
It may be tempting to ignore these calls, but doing so is actually the wrong thing to do. Why answer the call? Because they can tell you a lot about the status of your account and where you are in the collections process. Find out which of your creditors they are representing, how much they allege that you owe and the timeline for resolving the account.
In general, it is best not to negotiate or make payments to the third party collector. At this point you are at a crossroads in your debt resolution decision. You can opt for negotiating with and paying your creditor directly or you can seek help with your debts, such as filing for bankruptcy. One of the best benefits to the bankruptcy process is the automatic stay order, which prohibits debt collectors from making further collection attempts while you work to resolve your debts.
When credit collections become unbearable or you have assets and income at risk of liquidation, it is time to act fast. Anytime your assets are at risk of repossession, you have been given a notification of seizure or liquidation, or have been presented with a wage garnishment order you should immediately consult with a Tampa bankruptcy lawyer to discuss your debt relief options.