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