If creditors keep calling you, you might have unsecured credit debt that you need to take care of. Unfortunately, paying it off may not always be possible or your best option. Here are some of your other options.
Is the Debt Even Yours?
You have a legal right not to pay debt that isn't yours and to have it removed from your credit report. Someone else might have debt that's in your name because they stole your identity or they have a similar name to you and the creditor made a mistake. The law gives you the right to force creditors to validate any debt that they want to collect from you or put on your credit report.
You also have the right to have a creditor prove that a debt is yours in court even if you know it belongs to you. This is to protect everyone's right to due process. If you have a credit card debt, the creditor needs to prove that you opened the account, agreed to the account terms, and made the purchases. If they can't do this, they can't meet the legal burden of proof to win a debt collection lawsuit against you.
Did the Creditor Break the Law?
Creditors will sometimes break the law when they try to collect debts. This includes forms of harassment like calling you too many times or telling your employer about your debt. There are serious penalties when a creditor breaks the law.
You have the right to sue a creditor or debt collector for any violations of debt collection laws. You can sue for any actual harm that they caused. There is often also a fixed amount that you're entitled to by law just for having your rights violated. Even if the creditor's violation doesn't erase your debt, you can use the money you sue them for to pay off your debt.
Are You Judgment-Proof?
Another thing to consider is whether you are judgment-proof. This means that a credit can't actually collect anything from you. When a debt is unsecured, it means that there isn't something a creditor can repossess. Instead, they have to sue you in court for money. If you lose a lawsuit, you don't have to give up everything you own. You're allowed to keep enough to meet your basic living needs, and if you don't have more, there's nothing for the creditor to collect.
To learn more about how to handle unsecured credit debt, contact a local unsecured credit debt lawyer today.
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