In Maryland and across the United States, people in debt do not enjoy dealing with debt collectors. However, debt-related problems continue to grow. The Consumer Financial Protection Bureau released statistics showing that approximately 70 million Americans feel intimidated by phone calls about the money they owe. Some debt collectors use forceful words to convey their concerns, including threatening to withdraw money from financial accounts.
While it is tempting to ignore calls from debt collectors, the issue is not going to disappear. The best thing is to comprehend the issues surrounding debt and learn how to approach the dilemma by taking the right legal steps. Protecting assets is a crucial part of the equation. Plus, some debtors must deal with potential lawsuits. One common error made by debtors involves not responding to legal notices. A legal notice is typically in the form of a court summons.
It is important to respond to the notice even if the borrower is unable to repay the debt. Failure to respond may cause a debt collector to file a default judgment leading to possible garnishment of wages or bank account levies. Furthermore, collectors may tack on additional legal fees and interest. So, a person who receives a notice needs to respond immediately. If the borrower does not respond, the collection agency may inform the court.
Once the court is informed about the debt, the respondent no longer has the right to respond via the phone or mail. Instead, the debtor must file a legal brief. Chapter 13 bankruptcy may offer a debtor the chance to get their finances back on track. Consulting with a bankruptcy attorney may help a borrower via a refinancing option based on a debt plan. Any debtor facing a serious debt problem may benefit from reading a Chapter 13 bankruptcy blog by an experienced attorney.