Creditors are a constant threat when you’re dealing with significant debt. They may call repeatedly, threaten you, and eventually, motion to collect their debt. Greg Dunn, Bankruptcy Attorney of Honolulu, HI, advises that although traditional collection means are legal, the premises creditors act on aren’t always justified. It’s important to recognize this, as you and a debt attorney may be able to put a stay on the collection if they’ve violated your rights.

3 Ways Creditors Collect Debts

1. Wage Garnishment

If you’re consistently late on debt payments or simply don’t make them, creditors can request courts to file a wage garnishment suit against you. If this occurs, your employer will withhold a certain amount of each paycheck that will be paid to the creditor. This process will continue until the debt is paid. In most cases, creditors are required to sue you to secure a court order before wage garnishment begins. If they have not, speak with your debt attorney. You may be able to have the garnishment terminated if they’ve broken protocol.

2. Bank Setoffs

Most people don’t think of banks as creditors, but when it comes to mortgages, auto loans, and other financial services, they are. When you don’t pay the loans they’ve issued, they can institute a setoff. This allows them to withdraw money from another account you hold with them to cover the loan payment. However, this comes with limitations. Banks cannot take federally issued benefits, such as unemployment or social security payments. They also can’t use the money to pay off credit cards. Have your debt attorney check state laws if you suffer a bank setoff, as you might be able to have it revoked.

3. Repossession

Mortgages, auto loans, and business loans are all tied to assets. These are called “secured debts,” and when you fail to make payments, creditors can seek a court order to repossess them. They’re essentially collateral for the loan, and while they may not pay back the full amount, the creditor can repossess your car or foreclose on your house so long as they have a court order. It’s important to never allow a creditor to repossess something without showing you a court order. Doing so is illegal, and you may be able to build a case against them.

If you’re dealing with creditor harassment, turn to Greg Dunn, Bankruptcy Attorney. He has extensive experience with debt relief and can help you explore solutions to escape debt. Call (808) 524-4529 today to schedule a consultation and visit his website and Facebook to learn about his debt consolidation services.