Debt collectors, or bill and account collectors’ job is to try to collect payment on bills that are overdue. Most bill collectors are employed by third party collection agencies. The creditor, or the company or business that is owed the debt, will often hire outside of the company; especially if their accounts receivable department is small.

Other collectors work directly for the original creditors; these guys are called in house collectors. Usually these are financially based companies like credit card and mortgage companies, healthcare providers or utility companies.

No matter what organization that they work for, the tasks of bill collectors are the same. First, they’re supposed to find consumers or businesses that are in debt, and notify them that they are delinquent. Generally this will be over the phone, but some of the time they send letters.

When debtors (people in debt) move without leaving a forwarding address, bill collectors may check with telephone companies, the post office, credit bureaus and former neighbors to get the new address. This practice is called “skip tracing.” Collectors who do skip tracing will use computer systems to automatically track when people or companies change their addresses or contact information on any of their open accounts.

Once the bill collectors find the debtors they tell them about the overdue accounts and ask for payment. If it’s needed they’ll go over the terms of sale, or credit contracts. A good bill collector is a sneaky one. They’ll probably use their listening skills to try to figure out the cause of the delinquency.

Usually they will have the authority to offer a repayment plan or some other help to make it easier for people to pay their bills. A lot of the time they are able to find solutions to the financial problem. They may even offer useful advice or refer debtors to debt counselors.

To Be Continued….

Rapid Recovery Solution is a New York debt collection agency.

In the last article I spoke about debt settlement programs and whether it pays to agree to one or not. Keeping all of this information I relayed to you in mind, if you decide that debt settlement is not the best option for you, there are four other main choices: stay delinquent, come up with extra cash to make payments, work with a credit counselor, or file for bankruptcy.

Remaining delinquent will just cause your credit score to get worse, and the longer you wait, the harder your score will be hit. Just one thirty day late payment can cause your score to plummet by up to one hundred and ten points. Ninety days? You are now three times as late with your card payment, and you are only getting later as more time passes on.

Coming up with extra cash to make your payments might just be worth your while. Take a close look at your finances and budget. Is there anything in your budget that can be adjusted, or anything you owe that can be sold? Use any extra money to pay your debt and prevent any further damage to your credit score. For a lot of us, budgeting isn’t as easy as that. If you need outside help, seek out a credit counselor. They will get to the bottom of the issue, and find a solution for you.

Also, you can also have the option to file for bankruptcy. This means that you won’t have to repay the debt, but filing will cause your credit to be hurt even more than a debt settlement, by as much as two hundred and forty points. If you are thinking about bankruptcy, have a consultation with a bankruptcy attorney to discuss the details.

All told, experts say that talking to a good credit counselor is the best choice. They can help you assess your financial situation, offer possible alternative options, and show you how to avoid making the same mistakes in the future.

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In part one in these series of articles I wrote about potentially shady debt consolidation schemes that you should be on the lookout for. Read on to find out more:….

In the meantime, your creditors are not being paid. Unfortunately, while you are accumulating that payment, you are not paying your bills and you may be delving further and further into more debt.Instead of taking this gamble check out a not for profit credit counseling firm that might charge you only twenty dollars, if anything. Instead of billing the debtor, these non profit counselors will generally get what is called a fair share percentage payment from your creditors after your debts have been paid.

Finally, and most important, do NOT put trust in the debt settlement counselor who assures you that “We will handle everything. You should stop communicating with your creditors.” Despite the fact that the idea of not speaking to creditors and ignoring their mail sounds like a real load off of your back, ultimately, it is your debt and your credit score at hand. Never send in a change of address form directing all creditor mail to a debt settlement company.

It is key to remember that the creditor is the one with whom you signed your contractual agreement. When all of your statements are being sent to the debt settlement company, you relinquish that control. You do not know how much in late fees and interest are being tacked on. You also will not know if your debt has been transferred into collections.

A few final words of wisdom. If you think you need debt settlement, try debt management first. Get in touch with your creditors and request reduced interest, suspended payment or any other payment terms that may suit your financial situation more favorably. Although it may seem like a long shot, or a pain, it is always very important if you are about to miss a payment to call your creditor and say “Listen, I can’t make this month’s payment. I’d like to work something out with you.

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Divorce, in addition to bankruptcy can bring serious problems to the table for those involved in the situation. When a married couple who no longer wishes to remain together have debts piling up and are heading for divorce, bankruptcy might be one way to sort out the financial issues. Bankruptcy has the capacity to be filed by just one spouse, or jointly. The effects of bankruptcy on divorce proceedings? Abrupt at best. An automatic stay will put an end to all activities on divorce proceedings.

Although one lawyer may seem trying in a time of stress, two lawyers may be necessary to sort the matters out, a bankruptcy attorney and a divorce lawyer to hash things out between the unhappy couple. Some good advice to take would be to immediately seek out a bankruptcy lawyer to guide you through your finance, in addition to the attorney who is assisting you through your divorce. The expert guidance with alimony, child support, property settlements, and other financial issues is key when you are suffering from the stress of bankruptcy and divorce simultaneously.

If the spouses together have a lot of debt, filing for bankruptcy jointly is a good idea. This can even simplify the divorce settlement, and filing bankruptcy jointly is more cost efficient. If you are a spiteful ex, filing individually for bankruptcy is a good way to send the creditors after your spouse.

Then there is the matter of property that you have accrued during marriage. That’s marital or community property. If you are filing jointly for bankruptcy, and your ex spouse has marked some of your separate property as marital property, you should take these actions. First, you should prove what is yours isn’t community property. The bankruptcy court will release the exempt property, and the remaining property that you share will be part of the bankruptcy estate and therefore will be used for paying off the money you owe.

After the bankruptcy court has determined which property is exempt from bankruptcy, the divorce court can dole out the property between the divorcing couple equally. The non exempt property will be sold by bankruptcy trustees (representatives) to pay off the money that you owe.

A different way to steer clear of financial loss on account of your former spouse’s debt is to attach a property of your spouse as a security lien. This lien will permit you to take hold of the property and utilize it to pay off your spouse’s loan if he or she is thinking of ditching and letting you pay. The property with a lien may get you less than the market price, but this is still a good way to protect yourself.

Finally, you can work an indemnity clause into your divorce decree. This will help guard you from creditors who are coming after you to pay for your ex spouse’s debts after the divorce. If your husband or wife files for bankruptcy, don’t worry. The judge will enforce it to protect you.

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