Posted on June 21, 2009 at 9:40 pm How? If for example they give you a time limit as to when to pay your debt and you weren't able to do so--can those debt collectors make you bankrupt?

Posted on June 21, 2009 at 9:55 pm I don't think they can, without a court order...when you say "bankrupt" did you mean if they can make you broke or take away your money and property all by themselves? Or did you mean bankrupt as in force you into filing bankruptcy?

Posted on June 21, 2009 at 10:39 pm Yes I think, if they can take away my possessions, go to my house and demand that I surrender my belongings...until the debt is satisfied. I hear the term "bankruptcy" a lot, but I've always thought that it's basically just a declaration of your being broke or becoming poor...

Posted on June 21, 2009 at 11:28 pm Okay let's try to define 4 terms that are related to one another but are often misused:Creditor - this would be your original lender or the credit card company.Debt Collector - if your creditor has given up on you and hired or passed your account on to a collections group.Bankrupt - this is a loose term actually, a non-technical term, that is why you got confused, but it is someone who's financially ruined. In legal terms though, although I'm not a lawyer, a bankrupt is an entity that files bankruptcy.Banrkruptcy - it is a legal declaration of your inability to pay your debt which leads to a federal court proceeding that may give you relief from it.So the quick answer to your question is: No, debt collectors can't make you bankrupt, unless the court grants them permission or access to your properties.

Posted on June 21, 2009 at 11:47 pm Has a debt collector contacted you and threatened to make you bankrupt?Anyway, under the FDCPA or Fair Debt Collection Practices Act, debt collectors may not use abusive, unfair, or deceptive practices against the consumer.They may not:-tell you that they'd have you arrested if you don't pay your debt-tell you that they'll seize your assets, garnish your wages, attach or sell your properties without a court order-tell you that they are going to take legal action against you when if they don't intend to, because that would constitute harassment.

Posted on June 21, 2009 at 11:55 pm Hello outofmyhead, what they are saying is that, debt collectors can only maybe force you into filing bankruptcy--if they've contacted you regarding collection but you failed to take any action toward a resolution--and they were able to obtain a judgment against you. But even before the court hands down a judgment, the collection agency is obligated to, after notifying you of your debt-give you the chance to react: you may ask for that debt to be verified first and then assuming that it is really yours, give you a chance to negotiate.Your case does not even have to reach the court, only if you'd respond in a timely and appropriate manner. In a way, the can only make you bankrupt, if they are able to push you into filing bankruptcy.

Posted on June 22, 2009 at 12:08 am Ah I see...So if you can't pay your debts you can file bankruptcy and that's how you become bankrupt. Thank you all for replying!

Posted on June 22, 2009 at 12:46 am Well you don't have to file bankruptcy if you can't pay off your debts...There are other options that you can explore, like credit counseling, debt consolidation, and debt settlement. Or you can always try to negotiate your debt with your creditors. Filing bankruptcy should be your last option, unless you need its protection against a judgment (via the automatic stay). A bankruptcy can haunt your life (via your credit report) for 7-10 years, so if you are in any financial trouble, many financial professionals are offering free consultations, why not avail of those first? It's easy just fill out one of those mustard colored forms and speak with a debt expert.

Posted on July 9, 2009 at 12:08 pm So, can debt collectors really make you bankrupt? Objectively no they cannot, as one must actively file bankruptcy. However, debt collectors may indirectly put someone in a position where they have to file bankruptcy, or feel they need to file bankruptcy, if they are ever going to satisfy or get out of their financial situation. And as citizenoftheplanet mentioned, just because you owe your creditors and are having trouble paying them off, it doesn't mean filing bankruptcy is the only realistic option for you to get out of debt. If you would like, feel free to fill out a form on DestroyDebt.Com for a free consultation to see what your bankruptcy alternative options may be.

Posted on July 9, 2009 at 5:03 pm Right, and you have to wonder, is it really possible to even think debt collectors can make you bankrupt? Usually, it is a matter of mismanaging finance, or the result of a genuine hardship such as losing your job, getting a divorce or having a persistent medical issue or some sort of medical emergency.