Biggest Financial Mistake — Filing Bankruptcy Because Of Collectors?


Biggest Financial Mistake — Filing Bankruptcy Because Of Collectors?

Are you considering bankruptcy because you are sick of dealing with abusive debt collectors?  Take five minutes and read this article to understand why this may be one of the biggest financial mistakes you could make.

Bankruptcy is a legitimate option if you have no other choice.  Sometimes our debts and income and assets just don’t add up the right way.  This is what bankruptcy is for — to get a fresh start.

But to file bankruptcy to stop abusive debt collectors who are breaking the law is like cutting off your leg because you have a scratch.

A scratch on your leg is bad — certainly — but it can be fixed easily.

Abusive debt collectors are bad — they are a pain — an annoyance — they cause grief and mental anguish.

So sue them.  Don’t file bankruptcy.  Don’t destroy your credit and ability to have financial flexibility in the future.  At least talk to a lawyer who sues debt collectors to see if this is an option.

Here are some objections (myths) that some people raise on this issue:

I heard you can’t sue debt collectors if you owe the debt?

False.

Whether you owe the debt or not changes nothing.  

The debt collectors must treat you fairly and respectfully and in full compliance with the law.

I think juries will always side with debt collectors and against a consumer who owes money.

False.  

If presented at trial correctly, a jury should understand that the collector has to follow rules when dealing with you whether or not you owe the debt.  

Those rules are in place for a reason.  

When those rules are broken, people get hurt.  

The only way collectors will stop breaking the rules — will stop hurting people — is when the collectors have to pay money damages.

At this point, the collector will decide it is more expensive to break the rules than to follow the rules.

No one can ever tell you what a jury will do — particularly before the jury is even created!  

Until you are standing in federal court and the jury is picked, no one even knows their name.  

But the point is that juries tend to be very reasonable and they find out who is telling the truth and what can be done to protect the community.  

It is natural for people to be skeptical of leaving abusive debt collectors preying on the community.

It is too expensive to fight the collectors — after all you have to sue them in federal court.

False.  

First, debt collectors can be sued in state or federal court.  

Most cases end up in federal court but regardless the fee you pay to your attorney will almost always be contigent.

You don’t pay any fee unless you win and then the money comes from the settlement or judgment or the court decides how much the debt collector has to pay for your attorney’s time and expenses.

Won’t the collectors continue to bother me if I sue them?

No.  

When we sue them, they leave you alone.  

If they don’t, that simply magnifies the damages they will owe you.  

Abusive collectors are abusive, not stupid.  

They know if the 1 out of a 100 or 1 out of 1,000 actually takes any action against them, it is best not to continue to abuse that consumer.

Here’s the bottom line — if you are dealing with abusive debt collectors it is not wrong to see if you can file bankruptcy.

But you need to see if you can sue the abusive debt collectors instead so you don’t destroy your credit when you could have solved the problem in a much simpler and better manner…

Contact Us.

If you have any questions, give us a call at 1-205-879-2447.

You can also fill out a contact form and we will get in touch with you as soon as possible. 

I look forward to talking with you!

Have a great day.

-John G. Watts


2 Comments

  1. Lisa says:

    I went through a divorce in 2014. I am a resident of AL. I struggled going from two incomes to one with two young kids and bills. After only a few months I was left with deciding which bills I could and couldn’t pay. Of course, I chose to pay for housing, utilities, and groceries rather than credit cards. I continue to struggle to this day. My credit cards (totaling less than $10k) were sent to collections. I have moved a couple of times in attempts to reduce my housing bill. Because of the moves, I assume the collectors had no way to reach me other than by phone. But I stopped answering because I literally would have a negative amount in my bank account and could not pay them. Over the years I am not sure what I owe and even who I owe it to. How do I find out? A week ago I was served with a small claims in District Court of Calhoun County where I live for $1800 on behalf of Capitol One. I have 14 days to reply but what should I reply? I have thought about bankruptcy but I would also like to do the right thing. I feel desperate and terrified because I have ruined my credit. I have a federal job and have to disclose this mess of a life I have. I am all my kids have so I need to be able to provide for them without being worried and hassled. I want to fix and get rid of the stress, but also have someone to understand that I struggle to make ends meet. I never wanted to be in this situation, but it is where life has taken me and now I need to put an end to this mess so I can attempt to correct things. Any advice would be greatly appreciated.

    • John Watts says:

      Lisa,

      I’m sorry for all the hard times you are having — hopefully, things will take a turn for the better ASAP!

      We can help you see what is out there and also your options with the Capital One suit and potentially bankruptcy. Filing bankruptcy is a life-changing event that is rarely needed but you need to take a look at it along with all of your other options.

      Call us at 205-879-2447 and we’ll be happy to help you any way we can. Ask for Carolyn and she’ll get started with you.

      Thanks and look forward to speaking with you soon!

      John Watts

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