Judgement: How to deal with debt collectors

The problem with most people is the fear that they feel when they think there’s trouble. The basic and foremost thing to be done is to know your right. The law has two sides, that which favor the judgment creditor and that which favor the debtor. Harassing and abusing phonecalls, threats and abusive language are illegal and should be reported to the U.S. Consumer Financial Protection Bureau (CFPB) and your state attorney general’s office

The law allows consumers to send written requests for verification of debt within 30days of being contacted by a debt collector. Don’t ignore letters and phone calls about debt or court notices about debt lawsuits. Don’t dwindle if the debt isn’t yours.

Don’t forget to get yourself a lawyer.

Documents are written proofs and there is no consensus of how long documents should be kept. Always keep copies and records, they should be kept for as long as their statute of limitations for the state where the original purchase was made or your home state, whichever is longer. The best decision, however, is to keep proof of settlement or resolution of debt forever.

Always remember to safeguard your account, lawsuits for nonpayment of debt may result in freezing of account. This may be extremely problematic for family budgets and cash flow, and experts advise having separate account bank accounts for fund such as social security or disability checks, which are exempts and cannot be used as a source of court-ordered debt payment. Let the collectors know if your bank account contains only exempt funds or if you have filed for bankruptcy.

Always remember to record conversations if allowed especially abusive language or threats are used, recording the conversation will document it.

All agreements for making debt collection payments should be confirmed in writing and signed by the debt collector before sending in payments. This avoids misunderstandings about the amount paid or time period to make payments.

All correspondence with debt collectors via certified mail or return receipts should be gotten as proof that your letter was received.

No condition is bad if well managed, find an accredited counseling agency to work out a payment plan that works for your family budget.