Consumers who fall behind on mortgage payments, credit card bills or car payments may feel as if they have been left alone in the wilderness, but help is available. Consumers are afforded protection under the law and can seek the help of professional debt counselors and attorneys who have experience defending debtors from their creditors.
Debt Collections
One of the most stressful prospects of falling into debt are the endless phone calls and letters from creditors and collections companies. Fortunately, debtors are afforded specific and wide ranging protections under the Fair Debt Collections Practices Act, a federal law that applies in all states. Under the FDCPA, you have the right to order a debt collector from ceasing further communications, thus stopping all contact from that collector. When you exercise that right, the collector must comply or face being fined for each violation. However, you cannot stop the creditor from suing you in court even if you demand it stop contacting you.
Debts and Judgments
As a debtor, your creditors can sue you once you default on the terms of your loan. For instance, you can be sued if you fail to make your credit card payments. Whenever you are sued, you are afforded specific rights. The creditor who sues you has to notify you that the lawsuit was filed and, once notified, you have the right to fight back in court. While you do not need a lawyer to represent you, retaining legal counsel may help your case.
Credit Counseling
Consumers who fall into debt problems often face challenges in asking for help. Shame and embarrassment are powerful inhibiting emotions that stop people from asking for help. There are companies, organizations and people who can provide help when needed. The Department of Justice keeps a list of government recognized credit counseling services available to you at www.justice.gov. These counselors can help you develop a personalized plan to help you address your debt problems.
Scams and Pitfalls
People in debt have have a great need for help; where there is a strong need there are often unscrupulous people who are willing to take advantage of consumers. From credit counselors who have little training to quick-fix consolidation loan companies that leave you worse off than before, you must choose carefully when picking debt help providers. Contacting your state's attorney general's office is a good place to start, while seeking out the services of an attorney if you are getting sued or facing foreclosure.
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