Are you getting calls from debt collectors?
It's little consolation but you aren't alone. According to a recent article that appeared in the Pittsburgh Post-Gazette, more than 35 percent of American adults have debts and unpaid bills that are being tracked down by collection agencies. This would mean that over 60 million American adults are experiencing this problem. Student loans make up a good chunk of these collections since the total balance owed on student loans in this country now totals more than one trillion dollars. But beyond student loans, there are also unpaid hospital bills, credit card debts and even past due gym memberships and cell phone contracts with early termination fees.
All of this collection activity is hurting credit scores, job prospects, hiring decisions, and ultimately can lead to a tremendous number of telephone calls, threatening letters and ultimately lawsuits. The lawsuits can lead to the entry of judgments and liens which will enable the creditor to freeze bank accounts, seize assets, and in some cases even attach wages where there are unpaid student loans involved.
If you are experiencing any of these collection related problems, you may want to consider the various bankruptcy options available to you because truly, the filing of a bankruptcy may be preferable to the continued collection activity and lawsuits.
If you have questions about collection activities or wish to explore bankruptcy options, please do not hesitate to give Steidl and Steinberg a call at (412) 391-8000 for a free consultation.