Tips for Getting Through a Divorce With the Right Lawyer

Understanding Debt Collection

For those who've fallen behind on bills, there may come a time when the debt gets turned over to a collection agency. In many cases, these collection agencies are legitimate and above-board avenues that allow the credit card or other lenders to settle debts by compromise since these agencies usually collect a fee on each debt collected. No matter how annoying these phone calls and letters can be, there are some rather strict rules about how debt collection activity can proceed, and most all of them obey those rules. When those calls begin to come in, however, you may get so stressed out that you fail to notice a big problem. Read on to learn more about dealing with collection agencies that may not be on the "up and up":

Scare Tactics

One the most heinous of actions is a debt collection agency to threaten you with jail for owing money. Make no mistake: you cannot be jailed for owing money to anyone, with very few and specific exceptions. If you owe the IRS, you may end up in jail, but only if you get charged with fraud. You will have a warning about the charges and you will have the opportunity to defend any charges in court if that happens. The only other potential jail time could result from owing back child support, so be sure to keep on top of this important financial obligation. If you receive a call from someone claiming to be from your local police or the sheriff's office demanding that you pay or face immediate arrest, you are likely being scammed.

Sending Via Wire Transfer

Most legitimate collection agencies are willing to accept several different forms of payment, such as credit cards and checks. If the only way to pay involves sending a money order or wire transfer (such as Western Union or MoneyGram), hang up. These scammers know that wire transfers and money orders are not traceable.

Verifiable Callers

You should have no trouble getting the contact information from a real collection agency; they are usually perfectly open about their phone numbers, addresses, and web sites. A quick phone call to the creditor that holds the debt being collected can provide you with the name of the actual collection agency. Be suspicious of a cell phone number.

Rude Callers

Real debt collection agencies do employ some aggressive tactics to collect debts, but in most instances, they are also professional and polite. Scam collection agencies may employ people who use foul language, who makes threats, who insult you and more. This should count as a red flag that you have a scammer on the line.

If your financial situation has gotten to the point that bill collectors are hounding you and making your life miserable, your next step may be to meet with a bankruptcy attorney to learn more about the immediate debt relief a chapter 7 filing could provide you with.

Contact a law office like Todaro David M Co LPA for more information and assistance.