CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Debt in Collections? Five Things You Shouldn’t Do

How To Take Care Of Debt In Collections.Having a debt be turned over to collections is not the end of the world. Even those who are careful with their finances can have a debt end up in collections. It’s hard to predict the future and emergencies arise that affect your finances.

For instance, you might have a medical emergency or lose your job or have any one of the other hundreds of things happen that can unexpectedly affect your financial situation. If this should occur and one or more or your debts ends up in collections, what are five of the most important things you should never do?

  1. Ignore Contact from Creditors and Debt Collectors

As tempting as it might be to ignore any contact from those trying to collect on a debt, it’s one of the worst things you can do. Even if a debt isn’t legitimately yours, you still cannot ignore attempts to collect on it.

If you ignore debt collector contact, it’s possible they’ll take legal action against you and be granted the right to put a levy on your accounts, garnish your wages, or put liens on your property. 

  1. Get Aggressive with Collectors

It can be tough not to get frustrated when you’re receiving several calls per day demanding payment of a debt. As much as you might want to take your frustration out on those placing the calls, try not to. Don’t hang up on them, don’t curse at them, and don’t lie and pretend to be someone you’re not.

Instead, if you don’t want calls, tell the collector you don’t want to be contacted by phone and follow up your request with a letter to the collection agency.

You’re still on the hook for the debt, but the daily phone calls should stop.

For more information on how you can get collectors to stop calling you, check out this article from The Balance.

  1. Create a Payment Plan You Can’t Handle

It’s possible to create a payment arrangement to take care of a past due debt. However, if you think there’s any reason you won’t be able to meet your payment obligations you’re better off not committing to payments.

You also don’t want to agree to pay the debt in full or part unless you have the lump sum of money on hand to do it, as well as the money to pay the tax penalty you’ll face for settling a debt.

In either case, setting up a payment arrangement only to have to back out on it tends to make debt collectors more aggressive.

  1. Give Collectors Automatic Draft Access or Automatic Payment Permission

Never give debt collectors direct access to your account. Most won’t take advantage of it, but some will and it’s impossible to know which can be trusted prior to setting up the arrangement.

Granting automatic draft or payment access is giving permission to a debt collector write a blank check off your account. Instead, agree to authorize a one-time payment or meet a payment date on your own each month, even if the collector makes promises about convenience or saving you money.

  1. Give Collectors Information about Your Income or Assets

Finally, you want to avoid is telling a debt collector – someone who will stop at just about nothing to take your money in repayment of the money you owe them – about your financial situation. Don’t tell them about your income or your assets. Not only could it give them a reason to pursue you relentlessly, it can also give them ammunition to use against you in court.

No matter what you’re asked by a debt collector, you don’t need to share information with them about your wages, your home, your vehicle, your other financial obligations, or anything else about your finances. You’ll need to share this information with the bankruptcy court should you decide to file, but you don’t need to tell a debt collector directly.

Figuring out what to do when a debt is put into collections can be a challenge. This is especially true when it feels as if creditors are breathing down your next.

For more information on how to handle a debt in collections, or to discuss your situation, contact the Law Office of Robert M. Geller at 813.254.5696 to schedule a consultation to discuss your case.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

How Does Getting Married Affect Bankruptcy?

If you are considering bankruptcy, you may be wondering how getting married affects your ability to file. The answer is...
Read More

How Does Filing for Bankruptcy Affect a Vehicle Loan?

If you're considering bankruptcy, you may be wondering if you'll be able to keep your car. The answer depends on...
Read More

8 Ways to Deal with Student Loan Debt

If you're one of the millions of Americans saddled with student loan debt, you're probably looking for ways to minimize...
Read More

Tips for Handling Credit Card Debt

If you're struggling with credit card debt, you're not alone. The average American household owes nearly $6000 in credit card...
Read More

Don’t Fall for These Common Bankruptcy Myths

There are a lot of misconceptions out there about bankruptcy. Working with a debt defense attorney is one of the...
Read More

Can Filing for Bankruptcy Affect My Career?

It’s common for people considering bankruptcy to wonder how filing affects their job. The answer to this question depends on...
Read More

Can I Fix My Credit After Bankruptcy?

Wondering how to improve credit after bankruptcy? Here's what you need to know. Bankruptcy can be a fresh start for...
Read More

What Happens If I Can’t Afford Chapter 13 Bankruptcy?

Are you wondering what happens if I can’t afford my chapter 13 payments? Here's what you need to know when...
Read More

Help I Regret Filing for Chapter 7 Bankruptcy

Bankruptcy isn't the right choice for everyone. Depending on your unique financial situation, you may be able to find other...
Read More

How a Bankruptcy Attorney Helps You Avoid Problems When Filing

Do you know what mistakes to avoid when filing for bankruptcy? If you're considering filing for bankruptcy, it's important to...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions