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Credit card debt, creditor issues may lead to bankruptcy

On Behalf of | Jun 3, 2016 | Credit Card Debt, Firm News

The majority of people in Tennessee and across the country likely use at least one credit card on a regular basis. Unfortunately for some, credit card debt can become overwhelming and leave these individuals facing serious financial distress. The difficulties they face may make them feel as if they are drowning in uncertainty, and if they are receiving creditor calls, they may suffer even greater anxieties.

If creditors are calling, individuals may want to understand that these parties are not allowed to make threats. In some cases, creditors may ignore the legality of the situation and threaten to garnish wages or take other action in attempts to regain borrowed funds. However, the Fair Debt Collection Practices Act makes such threats illegal, and this information may help individuals keep from falling victim to such scare tactics.

Borrowers struggling to repay debt may wish to inform creditors that they may file for bankruptcy to sort out their debt issues. It is possible that hearing such news could cause creditors to feel more inclined to negotiate and work toward an easier payment schedule, but if such adjustments may not be helpful in the long run, individuals may wish to follow through with bankruptcy. Such a filing could help parties effectively face their financial difficulties and bring them to a more manageable state.

The stress the comes from facing considerable credit card debt or other financial issues could seriously impact a person’s life. Therefore, individuals who are under pressure to repay debt but do not have the means to do so may want to find out more concerning their bankruptcy options. This information may help Tennessee residents determine whether they may qualify and what steps to take in order to move forward.

Source: thesequitur.com, “Personal Bankruptcy: Your Creditor’s Worst Fear”, May 25, 2016