Debt Collectors

Have you ever received a letter from a company you’ve never heard of, demanding payment for an old medical or utility bill? Or a scary letter listing a debt owed to a company you’ve never heard of like Midland Funding, LLC or Portfolio Recovery Associates? When you are unable to maintain payments on a bill, it often gets sold to a debt buyer and/or sent to a collection agency who uses tactics to get you to pay.

This chart shows the average amount of separate collection accounts and debt buying agencies that had contacted each of our chapter 7 bankruptcy clients prior to their case being filed. And of course, it’s not just letters. For each separate company comes threatening phone calls and compounds the anxiety and shame individuals feel when bills pile up.

The first step when you get correspondence like this is to always open it. Ignoring the issue will only make it worse. Then you can request verification of the debt to make sure it is a valid bill. There are unfortunately many scams out there, so if you do not recognize the bill make sure to request proof. All communications should be in writing, and retain copies of anything you receive or send.

If the bill is valid there are options. You may be able to settle the debt for less than the total, or get on a payment plan. When you have more than one outstanding bill, make a list of all of your debts and examine your budget to see what you can afford to put towards your debt each month. There are different strategies for tackling debt, based on your specific goals and circumstances.

If you have questions about how to approach your debt, feel free to reach out to us for free legal advice. We also may be able to provide legal representation for eligible Massachusetts residents if appropriate.

For more information visit us at https://www.massdebtrelieffoundation.org/how-we-help or call us today!