Tuesday, January 4, 2011

What debt collectors can and can not help

Dealing with debt is inherently stressful, and one thing that helps reduce stress is to know exactly where you are. Get the book can help you make better decisions, and it is important to know what debt collectors are allowed to do. What actions have been taken?

First, it is important to realize that a debt collector is prohibited from taking action determined by the Fair Debt Collection Practices Act andapplicable state laws. They are not allowed to send information via postcards, as this could reveal private information. You are not allowed to publish your name or your financial problems in a newspaper, nor are they allowed to contact you at inconvenient times (before eight in the morning or after 9 pm).

Bill collectors can not be embarrassed in front of family members or report their situation to their employer. Above all, they have no real powertake your money if not to sue and obtain a ruling against him.

In the worst case, the creditor can garnish your bank account and up to 25% of salary, but only after obtaining a decision. In practice, however, this is more difficult than it might initially seem, and many lenders even bother to go through the hassle. This is especially true if you only need a small amount on a particular account.

Garnishing wages can be particularly difficult inState, and most of its assets will be off limits to creditors.

Also note that the seizure of your bank account will not be of great help if you have the money! Similarly, the entire identification process can be quite useless if you do not have much money to start. If conditions are really bad (and probably are very bad if you are behind on some bills), then get the money you would probably be very difficult.

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