Debt collectors are often referred to as “creditors” are not the best people in the world to deal with to say the least. Debt collectors more often than not put fear into the minds of their victims by sending demand notices and harassing phone calls and even go as far as suing their debtors. There are of course debt collection companies that trade fairly and I am not going to brand a single company with one hammer – so to say.
After deciding on a total debt amount that is good for both you and the debt collector, you can negotiate payments. Realize that the Debt collection companies has access to your credit reports and employment information. They know if you have other open lines of credit that can be used to pay off your debt with them.
So, other than calling you every 20 minutes, what do all those people do every day? A fair amount of time is also spent suing people. When the debt collection industry sues you, they expect you to do nothing; that happens probably 3 times in 4. Here’s what happens when you become a member of the “just ignore it” club.
NOTE: If the agency sells your note to another agency be prepared to fight again…I had to deal with this once and it was a pain! Stick it out though and you will be rewarded.
The bank will invariably give you a check, which is a promise to pay you so many dollars. In effect, what you and the bank have done is exchange a promise to pay. In other words, you have accepted each others credit, yet no money has exchanged hands!
After the court has reviewed the default judgment materials, the court will issue a money judgment against you. Once this is issued, you have a certain amount of time, normally 30 days to six months, to object to the judgment. If you don’t object, the judgment becomes “final” and the debt collector can begin judicial collection against you.
If you are in default and going through debt collection, first contact a credit counseling company and let them know what is going on. They will analyze your situation and see if they can help you. If not, then debt settlement is your only option. Just make sure you do not sit back and ignore your creditors, but make an active effort to keep them up to date.