When a debt goes unpaid, creditors often sell it to a third party, who then attempts to collect it. In the past, these attempts could be aggressive, but the passage of the Fair Debt Collection Practices Act reined in the ability of third-party companies to antagonize those who owe money. However, the phone can still ring on a regular basis, and many people aren't sure what a debt collector is allowed to do before a successful lawsuit. Here's a closer look at their restrictions and the debt help steps you can take. 

What a Debt Collector Can't Do

Once a debt is transferred to a collector, the regulations of the Fair Debt Collection Practices Act kick in. The federal government attempts to protect the public by listing certain actions that cannot be taken.

These include speaking with others about your debt, calling you before 8 a.m. or after 9 p.m., and harassing you in any way, such as using foul or threatening language or calling repetitively. They're also not allowed to give misleading or false information, such as pretending to be an IRS agent or telling you that jail is a consequence of not paying. 

Unfair practices are prohibited as well. For example, a collector can't cash postdated checks early, charge you more than the amount owed, or contact you via postcard, as your information could be seen by others. 

What Steps the Debtor Can Take

If the collector hasn't filed a lawsuit against you, you'll need to decide how to handle the situation. If you're judgment-proof, meaning you have little income and few assets that could be garnished, you may be able to simply ignore the calls. Waiting until the statute of limitations has passed will result in the collector having no recourse of any kind.

You can also strive to wipe the debts out by filing for bankruptcy. Going through the Chapter 7 process involves the courts discharging most of your debts, such as credit cards and personal loans. Chapter 13 will implement a negotiated payment plan that lasts three or five years and must be kept current to pay off debts.

If you're looking for debt help to get collectors off your back and begin your journey back to financial freedom, turn to the experts at Hurtt & Johnson LLC. Serving Dalton, Calhoun, and Northwest Georgia since 1977, this legal team will walk you through your options and help you decide whether bankruptcy or creditor negotiation is the right step. Call  to schedule a consultation or visit the firm's website to learn more about frequently asked debt help questions.