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Chapter 13 bankruptcy can provide debt relief for many

Most people don't choose to have a lot of debt. In Massachusetts, debt accumulation can anchor some people to living month-to-month while dealing with harassing creditors. It may seem like there are no options when predatory creditors call day and night. Fortunately, options like debt reorganization bankruptcy can help residents get out of a harassed lifestyle. Some creditors will go to unsavory extreme lengths to attempt to collect on debt.

In one case, a 69-year-old retiree was sued by a debt collection agency for a $2,500 unpaid MasterCard bill. Despite the man's claims that he never received a summons to court nor ever had a MasterCard credit card, he was found liable in court and was forced to sell a home he recently inherited from his late mother. According to the Center for Responsible Lending, debt collectors' lawsuits have been steadily increasing in the last couple years with incomes from legal collections increasing from $582 million in 2009 to $1 billion in 2012. Sometimes creditors may rely on incorrect information that leads to serious consequences.

With debt collectors going to legal action over debt, one important tool to consider is Chapter 13 bankruptcy. Once a resident of Massachusetts attends a credit counseling session, they can determine their eligibility. Chapter 13 will stop creditors from pursuing debt collection once it is filed. It allows a longer process to reduce debt and stop foreclosure.

Across the United States debt collectors are turning to legal measures to attempt to get their debt. For some people in Salem, debt can be overwhelming. Creditors can hound people day and night. Filing for bankruptcy can stop these practices and allow for peace of mind. It can put someone back on the flight to financial stability and freedom.

Source: The Huffington Post, "Debt Collectors Have Figured Out A Way To Seize Your Wages And Savings," Hunter Stuart, June 2, 2014

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