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When You Have Doubts about Debt Obligations before Bankruptcy

Posted By Allmand Law Firm, PLLC || 27-Dec-2013

Discharging Debt

Whether you plan to file bankruptcy in the near future or it is something you are considering, one aspect to help you understand your financial situation includes reviewing outstanding debts owed. Many consumers have a good idea of which creditors they owe, but sometimes things can become questionable when a debt collector contacts you out of nowhere and claims you owe them money. You don't recall owing this debt but when the collector threatens to file a lawsuit you have the feeling something isn't right.

The good news is there are a few options you can take in helping you understand debt you owe. When in doubt about collection attempts from debt collectors you can request to have the debt validated. According to the Federal Fair Debt Collection Practices Act (FDCPA) consumers have a right to request additional information about a questionable debt. This means the debt collector is required by law to provide information about the debt in question along with providing proof they have a right to collect it.

Debt collectors should provide information about your rights regarding the debt they are attempting to collect. You have 30 days to send a written request for verification of the debt and the debt collector should not try to collect from you during this time. The FDCPA prohibits debt collectors from making false claims such as threating a lawsuit, having you arrested or other related claims. You should also consider the statute of limitations for the debt in question. Each state has a certain time period for specific debts and how long creditors have to collect on them.

Discuss questions or concerns with a qualified attorney.


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