If you've learned that an outstanding debt has been sent to a collection agency, it's important to address the issue head-on. Bankruptcy attorney Gilbert P. Kaback Attorney at Law has served the Colchester, CT, area for more than two decades and represents clients in all matters of bankruptcy law issues. Below, attorney Kaback shares a few crucial things to do if your debt has been sent to a collections agency.

Tackle the Matter Right Away

Time is of the essence here. As scary as it might be, get on the phone and call the collections agency to start exploring your options for paying off the balance. If you wait, you will be contacted by the debt collector until the case ends up in a court of law. Your refusal to pay could become part of your credit report, which will be a red flag to any future creditors, jeopardizing your ability to buy or rent a home, obtain a car loan, or secure a new credit card in the future.

State Your Intention to Pay

When you talk to the collection agency, tell them that you intend to pay the amount owed. If you can, pay off the debt immediately, but hope isn’t lost if you can’t. Let the collector know that you will save up and pay off the amount by a specified date; then, fulfill your promise. Try to avoid committing to a repayment plan through the collector, as you don't want an ongoing relationship with a collection agency that will likely charge you high interest rates and finance charges.

Never Give Bank Account Information

If the debt collector wants to take automatic payments from your bank account, refuse the demand. Not all collection agencies are aboveboard operations, and you may find your account drained of far more than what you owe. Instead, pay by check, and keep a copy of any canceled checks on hand.

If your debt has gotten out of control and dealing with collection agencies has become a fact of life, let bankruptcy attorney Gilbert P. Kaback Attorney at Law help you explore your options for debt relief. Call (860) 537-0874 today, or visit his firm's website. Start on the path to debt-free relief, and call a caring, committed bankruptcy attorney today.