If you find yourself owing a debt, you will more than likely end up speaking to a debt collector over the phone in the near future. Many individuals in debt make the mistake of panicking and believing everything a debt collector tells them. The first thing an individual owing a debt must do is to educate yourself on your current situation and how you can make the best decision for yourself.
Know who’s collecting your debts. If you creditor has assigned a debt collection agency, you should be made aware of it. A Debt collection companies must first send you a written document containing the status of your debts and your debt collection rights.
It’s far worse too if there has been some mistake. The debt collectors say they rarely make mistakes but that is not my experience. They easily could have the wrong person or the wrong amount as they tack on all sorts of fees. They can also easily fail to serve a person the lawsuit so the jailed person may have no warning of what is coming.
In California I am not currently aware of people being issued arrest warrants for owing purely personal debt but be aware of situations that could amount to debtor’s prison. Courts always maintain that they put people in jail for violating a court order and not for owing debts and thus they get around the constitutional prohibitions. Some creditors in some states have used this loophole to just get a judge to order payment of the debt and when payment is not made then the judge issues an arrest warrant for failing to follow a judicial order. This amounts to the exact same thing as a debtor’s prison.
Remodeling: New home sales may have plummeted, but more people are looking to make the most of what they have. This is true in the businesses who need to downsize their businesses which will call for remodeling. Homeowners are sinking what money they do have into their current house instead of looking to move into a bigger and better home.
Debt collectors will try to pursue the debt even after the statue of limitations on the debt is up. Do not allow yourself to be intimidated by their bullying tactics. Calmly take down their information, deny the debt, and tell them to stop calling you if not you will take legal action against them. If you acknowledge the debt, or agree to pay them, it may be possible that the statute of limitations is no longer valid.
Repossession: This one doesn’t need a whole lot of explanation. If you are looking to get into the repossession industry however, you need to be very brave. Being big and strong won’t hurt either. People tend to get upset when you take back things they haven’t paid for.