Overwhelming debt can accrue incrementally over a long period of time or it can happen suddenly. In Indiana, this is a problem for people regardless of age, education and situation. Those dealing with this type of debt should be aware of the positives that can come with a successful bankruptcy filing. Recently, a new challenge came up that can increase the stress and difficulty people in debt are facing: debt collectors now have expanded methods of contact to get in touch with those who owe money. To put a stop to this and various forms of creditor harassment, it is important to have help weighing all available options.
CFPB now allows different ways to contact debtors
The Consumer Financial Protection Bureau (CFPB) implemented a change that will let debt collectors contact debtors in ways other than through the mail and by telephone. According to the former director of CFPB, the changes that will now let debt collectors use text messages, email and social media to contact debtors. The CFPB believes this was necessary due to the old rules being more than 40 years old. There are shields designed to prevent abuse with these new ways of contact.
The debt collector must say who they are when they make contact. They can try and “friend” a person on social media. The person must be granted the right to opt out of this form of contact. Also, the messages cannot be public. They must be private. Consumer advocates are concerned about this new template as it could leave debtors rife for harassment and abuse. Scams are also a worry. Older people tend to be vulnerable to schemes, but they can impact anyone. Regarding phone calls, debt collectors are limited to seven per week.
Bankruptcy may clear debt and put a stop to creditor harassment
With the recent challenges people have faced including sudden medical expenses, a decline in wages, outright job loss, divorce and the need to use credit cards to pay debts and stay above water, many are in the position where they need to consider how they will clear their debts and move forward in a better financial situation. Bankruptcy does not mean a person has failed. It simply means they ran into some turmoil and are using a perfectly legal avenue to start over. For advice with Chapter 7 or Chapter 13 bankruptcy to clear debt and stop harassing calls, experienced assistance can be useful.