How to Stop Debt Collectors

It can happen to the best of us. You find yourself unable to make even the minimum payments on your bills, and now you are avoiding the seemingly endless flood of letters and phone calls from collectors. You don't have to keep hiding, there are steps you can take to stop the harassment and find some relief from debt collectors.

Instructions

1. Call each of your creditors directly and work out a repayment plan. You will have far more success working directly with your creditors, rather than dealing with third-party collectors. Call as soon as you begin to fall behind on payments, as some creditors may not be able to work with you once your debt has been "sold" to an outside agency.

2. Determine your rights. You may owe a debt, but there are guidelines that collectors must follow. Make sure you know what measures they are legally allowed to take when contacting you. For instance, collectors can call you at home, but they cannot call before 8 a.m. or after 9 p.m.

3. Write a cease and desist letter, and send a copy to each of your collectors. Under the "Fair Debt Collection Practices Act," collectors may not contact you once you have advised them in writing not to do so.

4. File for bankruptcy. If your debt is severe enough, and you are unable to pay or work out a payment arrangement, your best option may be to file for bankruptcy. Once you file, you will be granted an automatic stay. The stay is a legal injunction that prevents any creditor or collector from contacting you about your debt, or taking any further action to collect it.

Tips & Warnings

• If collectors become abusive, keep record of any contact you have with them. Track the number of times they've called and what they've said. Record the conversations or messages if necessary.

• If you choose to file for bankruptcy, consult an attorney.

• Be aware that notifying a collector that you do not want to be contacted about your debt does not erase your debt. You are still legally responsible for the money you owe.

• Bankruptcy should only be considered as a last resort. A bankruptcy can remain on your credit history for up to 10 years, making it difficult to obtain future credit, such as a home or car loan.

Resources

• Sample Cease and Desist Letter