Individuals need to take immediate action once they receive notice of collections actions by creditors.
February 25, 2014 /24-7PressRelease/ -- How to bring an end to calls from creditors
Article provided by Jeffrey P. White and Associates, P.C.
Visit us at http://www.whitelawoffices.com
Many people would say that they try to put aside some money into a savings account each month. They want to have something to fall back on should they experience any financial problems. Unfortunately, many of those individuals are living paycheck to paycheck, and will experience significant challenges making ends meet should they experience any unplanned major expenses.
When debt problems arise, it can be a very stressful time. People may have to decide which bills they can pay, and which will have to wait until they have more resources available. Those creditors who have not received their payments may be very aggressive about collecting these past-due balances, including calling or sending the debtor notices about potential steps that they may take.
Those who receive these threats may wonder what they can do to stop these harassing calls and letters. They may consider working with a debt relief company, but often learn that this does not put an end to these actions. Often, these companies advise debtors not to pay any of their bills, instead collecting all of the available funds as a fee for services. This means that there are even more creditors pursuing what they are owed.
Most people do not realize that filing for bankruptcy brings an end to collections actions. Once a person decides to file for bankruptcy, the automatic stay goes into effect. This provision brings an end to any garnishments or collections lawsuits that are either in progress or pending against the debtor.
This is an extremely important benefit provided by both Chapter 7 and Chapter 13 bankruptcy. Not only does it relieve some of the stress that debtors may be experiencing, but it also helps them get back on track. Debtors are given time to assess their financial situation, and make positive changes that allow them to be able to pay some of the amounts they owe while eliminating their dischargeable debt.
If you have received notice of a collections action from a creditor, you need to take immediate steps to deal with this issue. You should contact an experienced bankruptcy attorney to obtain a clear overview of the potential ways that you can resolve your current financial problems.
You may be reluctant to consider bankruptcy as an option, but, before ruling it out, you should at least understand what happens during the process. Because each person's financial situation is so different, you need to receive advice that specifically focused on the actual problems you are having. Without having an opportunity to discuss all of your options, you may be missing out on the solution that is best for you.
Disclaimer: If you have any questions regarding information in this press release, please contact the person listed in the contact module of this page. Please do not attempt to contact 24-7PressRelease. We are unable to assist you with any information regarding this release. 24-7PressRelease disclaims any content contained in this press release. Please see our complete Terms of Service disclaimer for more information.