If you're facing massive debts that you can not pay, you may be tempted to simply ignore your creditors. The Fair Debt Collection Practices Act (FDCPA) allows debt collection companies to attempt to collect a debt for another business. These collection companies can be quite aggressive in their attempts to contact debtors. There are very specific guidelines that these debt collectors must follow, and if they violate these laws they can be held responsible and will actually have to pay penalties to debtors. Most debt collection agencies work hard to ensure that they do not violate these rules but do work just as hard to contact debtors to attempt to get them to repay a debt. If you have a lot of debt and are receiving letters and phone calls from debt collectors you may feel overwhelmed and frustrated. Understanding the debt collection process can help you understand what your options are, and why you should not simply ignore your debt collectors.
Your Creditors Can File a Lawsuit Against You
Phone calls and letters from a creditor are simply the first ways that a creditor attempts to get a debtor to pay their debt. If your creditor has called and sent letters for months unsuccessfully attempting to collect a debt from you, they will likely at some point most move to take more serious action. Your creditor is allowed to file a lawsuit in a court of law to attempt to receive a judgment in the amount that is owed to them. If a court decides that the debt is valid, they will rule in favor of your creditor.
Collections After A Money Judgment
If a court of law makes the determination that your creditor has a valid legal claim to the debt that is owed to them by you, there are several ways that this judgment is enforceable.
- Wage Garnishment. A creditor can legally request that the court garnish your wages. This means that your employer is notified that a certain amount needs to be taken from your paycheck and sent to the court, with the remaining amount of your wages going to you.
- Bank Account Levy. A creditor can require your bank to withdraw money from your personal bank account without your permission to satisfy the judgment regarding your debt.
- Lien Against Real Estate. A creditor also has the option to place a lien against any real estate that you may own.
These decisions are made by the creditor and the court at this point, and you are completely unable to have any power if your situation comes to this point.
Contact an Experienced Bankruptcy Attorney
Ignoring your creditors and debt collectors will not make your debts disappear but rather can make your financial situation much more catastrophic. Contacting an experienced Jupiter & Palm Beach Gardens bankruptcy attorney can help you understand your legal rights, and the options you still have available, if you are facing collection calls regarding your debt. Contact the office of Julianne Frank, Esq. to help you with your case, and help determine the best way to handle your debt collectors. Contact our legal team at (561) 220-2528 for a free consultation today.