Articles Tagged with creditors

can creditors take my houseIf you have fallen behind on paying your bills, you may be wondering if you could lose your home. When facing financial turmoil, this is naturally what folks fear most. Fortunately, your home is safe from any creditors who do not have a mortgage or lien on it. Credit card companies and other unsecured loan holders can’t come and simply take your property or home after missing a few payments.

A creditor will first start making collection attempts by mail, phone calls or other methods. If these attempts are unsuccessful, there is a good chance that they will file a lawsuit against you. By doing so, the creditor is hoping to get a judgment which would allow them to transition from being an unsecured creditor a to secured creditor.

A judgment is issued by the court, and it states that the creditor has won the lawsuit and has a right to collect a specified amount of money from you. A creditor can get a judgment against you if you don’t respond to a complaint, don’t comply with a judge’s order, lose a summary judgment motion or lose a trial. Once a judgment has been issued, you become a judgment debtor and they become a judgment creditor.

When you fhow to stop creditors from callingace the unfortunate situation of falling behind on your credit card, mortgage, auto loan or other bills, you may also find you’ve become the victim of debt collection harassment. The goal of this type of harassment is to annoy, intimidate or bully a consumer into paying off a debt.

Debt collection harassment can come in different forms—email, direct mail or texts—but it is most often done by constant, repetitive phone calls. These phone calls are often designed to annoy and belittle not only the person who holds the debt, but also whoever happens to answer the phone. At worst they may contain profane language and threats. They might even contact your friends and neighbors about your debt, seeking to humiliate you.

Fortunately, you have rights. While debt collection agencies are legally permitted to collect the debt that is owed to a creditor, they are not legally permitted to use abusive tactics to collect this debt from you. The Federal Trade Commission, the nation’s consumer protection agency, enforces something called the Fair Debt Collection Practices Act. This act prohibits debt collectors from using abusive, unreasonable and/or deceptive practices to collect a debt.