Being in debt often means receiving calls from creditors who want to collect the money owed to them. For those who don’t have the money to pay their bills, this can be frustrating. Fortunately, there are laws that protect the people of Maryland from harassment by debt collectors. It’s important for consumers to understand these laws so they can assert their rights.
Most debts have a statute of limitations of up to six years. This means that a creditor may not be able to get a judgment against a consumer after that time has elapsed. However, they can still try to collect the debt. It’s also important to know that the statute of limitations typically starts when the last payment is made. A debt that has been outstanding for quite a long time could result in a judgment if a consumer makes a payment toward it.
Creditors are required to verify any debt following a request by the consumer. Consumers often have erroneous information on their credit reports, so it’s important to review them regularly and dispute any unknown accounts. If the original creditor validates the debt and it’s within the statute of limitations, consumers may then decide to pay the debt in full, settle the debt or include it in a Chapter 13 bankruptcy plan.
A bankruptcy attorney could help a client find a solution for dealing with old and overwhelming bills. Chapter 13 bankruptcy laws allow consumers to reorganize debts so they can pay them over the course of several years without fear of wage garnishment. Legal counsel can further explain the potential benefits of filing for bankruptcy.