Generally, there are two types of creditors you will not hear from if you stop paying on debts. First, the IRS can seize money from your bank account in many situations. The government has rights nobody else does. Second, a bank who you owe money to (an equity line, for example) can seize money from a checking or savings account you have with them. This concept is called setoff.
Other creditors do not have the power to take your money without resorting to other means. They can go to court, but following the legal process is expensive. They resort to threatening you, embarrassing you, or pestering you over the phone in an attempt to get the money.
If you are reading this blog, you are already becoming informed which is lethal to the most common creditor strategies. Until you get something from the court, notifying you of a lawsuit, the creditors calling you are probably powerless. If the creditor is trying to embarrass you into paying, remember that you are responsible for providing for your family, not the creditor’s family. Be polite, and end the conversation. If they continue to call, stop answering. Caller ID is a beautiful thing. When you hire a lawyer, all you have to do is politely give the person your attorney’s name and number. Then, they are no longer allowed to call.
The bottom line is that the creditors calling you are generally powerless to take your stuff. Regardless, if you are getting a lot of calls, it would be wise to sit down with a professional to review your financial situation and work out a plan moving forward.
