Talking to debt collectors and creditors seeking payment on past due balances is not fun. Nobody likes to do it, and many will do almost anything to avoid it. Many are tempted to ignore it entirely when faced with endless emails, phone calls, texts, and letters from debt collectors, but what happens when collection notices are set aside and ignored?
What Happens If I Ignore My Collection Notices?
Have you ever heard the old saying, “You can run, but you can’t hide?” The very first debt collector may have inspired that saying. In our virtual world, it’s difficult to ignore a debt collector completely. Even if every call is sent to voicemail, they are incredibly persistent and have many other contact options from text to email to social media. If you are equally persistent and ignore or block creditors in online arenas, the situation could escalate to a lawsuit.
What Else Will Creditors Do If I Ignore Them?
Creditors don’t like being ignored when they are owed money. In addition to filing a lawsuit, they can also cause other problems for consumers who are hard to reach. Ignoring creditors and collection notices usually means your credit will take a hit. When a debt goes into collections, the delinquency usually appears on their credit report, so the account holder’s credit score typically suffers. In addition, the total debt or amount owed could grow if you ignore creditors reaching out for payment. When you set aside collection notices, not only does the principal balance still exist out there, but the total balance owed may increase due to interest that continues to accrue on top of penalties and late fees. In some cases, collection agencies may add charges to the balance to cover expenses related to their attempts to collect on the debt.
If I Ignore Creditors, Will They Reach Out to My Family & Friends?
When a debt collector is ignored, their entire job is to keep reaching out. If they can’t get you to answer your phone, they’ll try someone else. An aggressive debt collector will call anyone who may know you – your family, friends, neighbors, etc. In some states, creditors and debt collectors can contact third parties to track the account holder down. However, they are never legally allowed to disclose that you owe a debt to a third party or discuss your financial information with them.
Avoid the Stress & Anxiety that Comes with Ignoring Collection Notices:
Talking to creditors is stressful and may trigger anxiety, but your stress and anxiety levels will likely increase when you ignore your collection notices. Instead of creating a stress-filled situation in an attempt to avoid the stress of talking to your creditors, consider talking to an experienced bankruptcy attorney about the protections of bankruptcy.
If you are struggling with debt and aren’t sure you can deal with all the collection calls, emails, and letters much longer, consider speaking with Ken Rannick, bankruptcy attorney. Most bankruptcy offices in the Chattanooga area don’t have a single Consumer Bankruptcy Specialist on staff. Ken Rannick is recognized as a Board Certified (Senior Specialist) in Consumer Bankruptcy Law by the American Board of Certification. In addition, he is recognized and inducted as a “Superlawyer” by his fellow lawyers, which is awarded to less than 2% of all lawyers in his field. You are in good hands with Kenneth C. Rannick P.C. Get in touch with Kenneth C. Rannick P.C., Tennessee, and Georgia bankruptcy attorney as soon as possible.