Creditors can do a number of things to collect a past due debt. If you don't respond to one method, creditors can implement methods that are harsher than the previous one. The best way to resolve the matter is to pay your debts. You may have to file for bankruptcy protection to get debt relief.
Phone Calls
Creditors can make phone calls to place of employment to speak with you about a past due debt.
Letters
Collection letters let you know how much you owe; they will request that you call and make arrangements to pay the debt.
Personal References
Your personal references on your credit application can be contacted. The only thing they can do is ask for information concerning your whereabouts.
Time Frame
Creditors can charge your account as a bad debt and report the account to the credit bureau, where it will remain on your credit report for seven years. I
Warning
Your account can be sent to a collection agency by a creditor. The agency can file a lawsuit against you and get a judgment.
Repossession
If you are past due on your automobile, a creditor can hire a repossession company to take your car, which will then will be sold at an auction and the proceeds applied to your loan balance.
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