How,Avoid,Bankruptcy,Pitfalls, finance, share, loan How to Avoid Bankruptcy Pitfalls
Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track
When stuck in a huge debt, many individuals find themselves in a very stressful and taxing situation. One major challenge they must face is dealing with their creditors. It is not uncommon that creditors sometimes commit undue practices in collecting debts from borrowers.Despite the Federal Law against unlawful debt collection practices, there are still creditors that cross their limit. Why? Because they get away with it. Some consumers are not even aware of their rights and do not know how to protect themselves. For them, creditors have the power over them because they are the ones in debt.What do consumers go through with some of their creditors? Persistent calls, rudeness, the use of profane language, calling names, and violent threats are just some of the most common complaints against creditors. In most cases, to deal with this problem and to escape distressing situation, some are forced to file for bankruptcy knowing that once their bankruptcy has been approved, these creditors will have no other choice but to stop harassing them.However, filing for bankruptcy may not necessarily be the answer to your debt problems. There can still be other ways to solve your debt problems without resorting to bankruptcy. Remember that a record of bankruptcy can badly damage your credit reputation and it stays on your credit report for seven years. Add to this, with the new bankruptcy law, you will be going through a complicated process should you need to file for bankruptcy.If you're experiencing creditor harassment, you can do something about it and stop your creditors from treating you abusively. The Fair Debt Collection Practices Act clearly states what creditors should not do when collecting debts from their debtors. Be aware about these specific rules.For instance, a creditor cannot call a debtor at inconvenient times; calls can only be made after 8 am and before 9pm and repeated calls with the intent to annoy the person is totally not allowed. Obscene language, calling names, and making any kind of threats are prohibited. A creditor must not contact a relative or a friend inquiring about the debtor's personal information or disclosing any information about the person's debts. If the borrower is represented by an attorney, the creditor must attempt to communicate through the borrower's attorney.These are just some examples of the debt collection policy. A complete list of specific rules of debt collection can be found at the Federal Trade Commission's website. If your creditor has committed any one of these unfair debt collection practices, you can send them a "cease and desist" letter reminding them about your rights. Failing to abide by these rules can cause them penalties.It would be recommended to get in touch with a reputable credit counseling agency to help you with your debt problems. Your credit counseling agency can contact your creditors on your behalf and negotiate for new payment terms which you can afford. Furthermore, your credit counselor can personally advise you not just on how to recover from debt but how you can manage your finances more efficiently as well. Article Tags: Debt Collection Practices, Debt Collection, Collection Practices, Debt Problems
How,Avoid,Bankruptcy,Pitfalls,