This includes attorneys who collect debts on a regular basis. The US Federal Government prohibits certain methods of debt collection. You have the right to sue a debt collector in a state or federal court. Court costs and attorney's fees also can be recovered. Each must be filed in federal court.
Attorney fees are additional and can vary widely.
The consequences of bankruptcy are significant and require careful consideration. Chapter 13, also know as a reorganization, allows you to keep property, such as a mortgaged house or car, that you otherwise might lose. Reorganization may allow you to pay off a default during a period of three to five years, rather than surrender any property. Chapter 7, known as a straight bankruptcy, involves liquidating all assets that are not exempt in your state. Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments, utility shut-offs, and debt collection activities.