Trying to get out of debt in New Jersey can feel like an uphill battle. If you are also dealing with constant calls from debt collectors, it may seem like you will never be free of debt and harassment. Educating yourself is one of the best steps you can take to protect your assets and peace of mind.
USA Today reminds debtors that you do have rights. The Fair Debt Collection Practices Act sets rules and restrictions deciding how creditors go about collecting debt. That said, it is important to note that creditors sometimes sell the debt to businesses that specialize in collection. So, the company you originally owe may not be the one calling you. Whoever the caller is, if they violate the FDCPA, you may be able to report them.
It is also important to note that debts expire over time. This is not to say you should not pay them. You may get sued for failure to pay, or have your wages garnished and assets seized. What it does mean is that creditors have a limited time period to sue following the last payment you make on the account. In most states, this may be anywhere from four years to six.
If you do get sued a judgment is not always final. You may seek an appeal through the court. If you work in a field where it is difficult to garnish your wages or you do not have assets, the creditor may choose to settle instead. Whenever possible, it may be best to seek this route first. An unpaid debt can blemish your credit history for seven years or more. This can make it hard for you to move forward even after you have recovered financially.
These reminders from USA Today represent the tip of the iceberg. However, with continued research, you may discover more answers along the way. Check out the original article to see their full list of 50 items.
This article shares information on debt collection from USA Today. It should not be misconstrued as or used in place of legal or financial advice.