Southhaven Legal Issues Blog

Mississippi residents with mounting debts often get phone calls from debt collectors. Some of these threatening callers may not be following regulations on debt collection procedures. In fact, debt collectors are sometimes accused of harassing debtors. According to the Fair Debt Collection Practices Act (FDCPA), collectors have limitations as to what they are permitted to do when attempting to collect debts. The same regulations apply to credit card debts, missed payments on mortgages, vehicle loans and medical bills.

The Consumer Financial Protection Bureau (CFPB) states that the FDCPA forbids debt collectors from using unjust methods to collect debts. For example, debt collectors aren't allowed to use foul language during calls. The FDCPA covers calls made by lawyers and third parties. However, legal regulations do not enforce these rules on the original creditors. Per the official FDCPA guidelines, debt collectors aren't legally permitted to call debtors prior to 8 a.m. or later than 9 p.m.

As someone who has decided to file for bankruptcy, you may have done so in an attempt to stop the seemingly constant onslaught of phone calls from debt collectors. Such calls can prove, at best, a nuisance, and you may also have concerns about how it looks to have debt collectors calling you up at your place of business.

By filing for bankruptcy, though, you can put a stop to these persistent phone calls, and this happens because of something called “automatic stay.” Just what is automatic stay? Once you initiate bankruptcy proceedings, the automatic stay takes effect, and your creditors can no longer attempt to collect on certain debts during this timeframe. Just what can bankruptcy’s automatic stay protect you against, in addition to creditor harassment?

Many working people living in Mississippi struggle with their finances. Living paycheck to paycheck, they find it difficult to get ahead of crippling debt. If an emergency strikes, such as a family illness or job loss, they may have difficulty affording food, utilities and shelter.

Some employers are aware of the situation and are working to offer financial planning benefits to their workers. These companies have contracted with third-party companies to provide benefits such as financial counseling, student loan repayment options, emergency loans and medical bill advocacy.

Data published by credit reporting agency Equifax indicates that people in Mississippi and across the country owe $13.5 trillion in total consumer debt. Of that debt, more than $1 trillion is owed by people between the ages of 18 and 29. This debt is primarily made up of student loans, but it also includes credit card debt, mortgage debt, auto loans and other types of consumer debt. The last time people in this demographic owed over $1 trillion was just before the 2008 financial crisis during the fourth quarter of 2007.

The data was gathered and put out by Equifax and the Fed Consumer Credit Panel of New York. People between the ages of 30 and 39 owe $2.9 trillion. The demographic owing the most in consumer debt is people between 40 and 49, who owe a total of $3.4 trillion. Those between the ages of 50 and 59 are not far behind, owing $3.2 trillion, according to the data.