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Filing bankruptcy is a solution to end creditor harassment

Tennessee consumers know the story all too well. First, a consumer falls behind with the credit card bills, then their home mortgage. Before they know it, the creditor harassment begins. Of the many reasons that consumers finally decide to file for bankruptcy, creditor harassment is likely near the top. Whether a consumer has fallen behind due to unemployment, or unexpected medical bills, the following article might provide a little hope.

Creditors are notorious for their harassment. The process can vary somewhat in its details, but the basics are all the same. First, a consumer misses a payment, and then their account is categorized as a "collection account" by the lender. In the beginning, the phone calls and attempts at collection are likely civil in nature. The struggling consumer may initially choose to take the phone call and explain their situation, but it does nothing to end the phone calls.

Next, the original lender decides the debt is not worth dealing with and either assigns or sells the debt to a collection agency. Some collection agencies pay their agents on commission, which encourages the agents to push the limits of acceptable behavior. It is at this stage that things begin to get intolerable and consumers might start thinking about bankruptcy protection.

Without the ability to pay back creditors or enter into a negotiated payment plan, the consumer must then decide if bankruptcy is the right choice for them. Once a person files for bankruptcy and the court signs off on the bankruptcy plan, the harassment will stop. If it does not, consumers have legal recourse. Typically, this is enough to put an end to the worst of the worst, and allows the consumer to begin to rebuild.

Of course, filing for bankruptcy is serious decision that requires careful thought. However, for those inundated by credit card debt and exhausted by collection efforts, it may be the best way to move back toward the path of financial independence.

Source: Fox Business, "Should I File Bankruptcy to Avoid Debt Collectors?" Justin Harelik, Sept. 25, 2012

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

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