Some Important Rules of Thumb when Going Through Debt Resolution

Debt resolution can mean a handful of things and can be achieved in many different ways. However, regardless of whether you are filing for bankruptcy or working toward loan modifications there are still some very important things to keep in mind in order to make the process go as smooth as possible.

The following is list of important rules you should follow when going through the debt relief process:

1. Keep good records and ask for everything in writing.
Written correspondence holds much more weight than phone conversations so you may want to avoid collection calls altogether by asking that creditors send you what they need through the mail. Then, start a file of your correspondence with the debt collection agency as these records may be required during court proceedings.

2. Send all documents through registered mail.
Sending registered mail may cost more, but it can be very valuable in the long run. Registered mail documents that the receiver actually got whatever was sent to them by delivering the sender a signed receipt. That receipt ensures that no one can claim that whatever you sent got “lost in the mail.”

3. Keep your cool and don’t rush the process.
Debt resolution can be frustrating at times, but try not to be tempted to show a sense of urgency to resolve your debt. Keeping a level head and maintaining your patience can prove to creditors that you are confident enough to wait for their best possible offer.

4. Ask creditors to remove negative listings from your report.
After going through debt resolution, if you succeed in paying your debts in full there is nothing to stop creditors from removing negative listings from your credit report. Be sure to ask them to remove the listings and send you their agreements to do so in writing.

If you have further questions on the best ways to resolve your debt, visit our website at: www.creditadvocatelawfirm.com.

Avoid Collection Scams by Knowing Your Rights

At some point, everyone incurs debt. However, how many times have you or a loved one encountered an actual debt collector? For some, talking with a debt collector can easily become a negative experience. For that reason, it is extremely important that you know your rights when dealing with a collection agency.

First off, do your research. Before you talk to any collection agency, make sure to verify that they are a legitimate organization. Scam-artists that claim to work for collection agencies are constantly popping-up all across the country, and unfortunately many have been successful. Be sure to ask the debt collector for a legitimate address, (not a P.O. Box,) and phone number before giving out any information. If the collection agency cannot provide any of that information, it is probable that they are a scam.

These scammers are also notorious for using scare tactics to intimidate their victims into settling a “debt” quickly and without a paper trail.  According to the federal Fair Debt Collection Practices Act (FDCPA), it is required by law that the collection agency give you, in writing, proof of the debt you owe within five days after calling. Do not allow the debt collector to force you into paying anything over the phone or online.

After you’ve made sure the collection agency is not a scam, you’ll want to familiarize yourself with the fair debt laws provided by the FDCPA. For example, it is illegal for any debt collection agency to contact you late at night or early in the morning and it is also illegal for them to contact you at work if you have formally asked them to stop. Knowing these laws will ensure your protection against unlawful treatment by collection agencies.

If you feel you are being harassed by a collection agency, or if you know of one committing unlawful acts, it is important to tell someone. Visit our website to learn more about your rights when it comes to collection agencies, and do not hesitate to contact Credit Advocates Law Firm if you feel you are being scammed or treated unfairly.