Below are a few basics that may be of help when one has to deal with debt collectors.
A debt collector’s job is to get you to pay their client’s debt. They can be inventive in finding ways to motivate you to do that and they, traditionally, are paid a percentage on what they collect – which often times explains why your story is not at all convincing to them.
Therefore, you need to know that they are bound by laws and what they can’t do includes the following:
Call you early in the morning, late at night, or at any other unreasonable time or place.
Contact you at work if your employer prohibits personal calls.
Tell anyone (other than your spouse, lawyer, or cosigner) that you’re in debt.
Continue to bother you once you’ve told them to cease – save for initiating a collection action which in this economy too often isn’t the way for them to go.
If a debt collector breaks the rules, remind the person of The Fair Debt Collection Practices Act and if they are not deterred then use it by filing a complaint with the Federal Trade Commission, Correspondence Branch, 600 Pennsylvania NW, Washington, D.C., 20580.
If you are considering Personal Bankruptcy pay only these obligations:
Rent (unless you plan to move)
Car (if you want to keep it)
Mortgage (if you want to keep your home)
Child support and spousal support