The popular opinion that many in West Palm Beach may assign to bankruptcy is that it is simply a way for individuals or businesses to avoid having to their debts. While many of those who seek bankruptcy protection are legitimately in a position where they cannot afford to meet their liabilities, the concern of creditors that debtors might purposefully be avoiding paying them may be legitimate. Knowing this, the federal government has structured the bankruptcy code in such a way as to prevent the privileges of bankruptcy from being abused. This includes allowing creditors to force debtors into involuntary bankruptcy.
When a consumer signs a car loan, he or she must sign a contract that gives the creditor the right to take action in the event the signee falls behind on his or her payments. The fine print often spells out these rights, but consumers rarely take the time to read all the way through the contract. It is often shocking for people to learn that a creditor can repossess one's personal vehicle after even just one missed payment.
Having to collect from your company's debtors in West Palm Beach is no easy task. Doing so forces you to walk the delicate line between being assertive yet not completely destroying the potential for a continued business relationship. Yet ultimately, the need to collect what is owed to support your company's operations may require added effort on your part. When that is needed, debtors may be quick to claim your actions qualify as harassment, and thus are in violations of their rights under The Fair Debt Collection Practices Act. Is this true?
Often, people hear about debt from the perspective of someone who has borrowed more than they can ever afford to pay back. Write-ups and opinion pieces often focus on the challenges that debtors face, but it is important to draw attention to this issue from the perspective of creditors as well. Regrettably, delinquent borrowers have cost many creditors a staggering amount of money and the consequences of these debts can be overwhelming. In West Palm Beach and all over the state of Florida, creditors should go over their options and do what they can to recover debts.
Once a debtor files for bankruptcy, the court places an automatic stay that prohibits creditors from taking further collection actions. However, some creditors do not always heed the automatic stay. Usually, this is not deliberate; it is simply because the creditor does not realize that the court has placed a stay.