Receiving letters and phone calls from debt collectors can make dealing with financial hardship even more nerve-wracking. That’s why many people consult bankruptcy attorneys to help get their finances back on track. Filing for bankruptcy puts a hold on actions from creditors, including harassing phone calls from collection agencies, while debts are paid off. Learn more about a few strategies you can use to handle debt collectors until you speak with a bankruptcy attorney. 

How to Deal With Debt Collectors

1. Understand the Law

There are certain practices collection agencies might use that are against the law. According to the Fair Debt Collection Practices Act, representatives can’t go out of the way to disrupt the lives of debtors. This includes making multiple phone calls a day, calling outside of the 8 a.m. to 9 p.m. window, threatening debtors with prosecution or wage garnishment, and letting outside parties know about the debts.

Keep notes or record each interaction you have with debt collectors, and let an attorney know if your rights have been violated. The counselor will help you file a lawsuit against the bill collector.

2. Put Exempt Funds in Separate Accounts

In an attempt to collect a debt, a collection agency might get the court involved. To limit access to funds, the court could issue a freeze on a debtor’s checking and savings accounts.

Certain funds are off-limits to debt collectors, including social security benefits, stimulus checks, and disability payments. Set up separate bank accounts to hold your exempt money, so it isn’t lumped in with funds that are seized. Let debt collectors and creditors know those accounts cannot be used to pay debts.

3. Get Agreements in Writing

When possible, try to negotiate with debt collectors. A representative might be able to set up a payment plan to make reducing the debt more manageable. When negotiating, never settle for a verbal agreement.

The terms of the payment plan—including the total owed, the increment payment amounts, and the time frame to pay back the money—should be outlined in a letter that is signed by the representative and sent to you.

To file for bankruptcy and put an end to harassment from debt collectors, contact William C. Rieth. This bankruptcy attorney has more than 25 years of experience helping clients throughout the Rochester, NY, area understand their options when it comes to Chapter 7, Chapter 11, and Chapter 13 filings. To consult with the bankruptcy attorney about your case, call (585) 232-6520.