When debts go unpaid in Virginia, the original creditors often pass these bills off to debt collectors. The Fair Debt Collection Practices Act applies to third-party collection agencies. The law imposes a lengthy list of prohibited activities, which could represent harassment if violated. Well-informed debtors could recognize these unacceptable actions and resist harassment by citing their legal rights.
Debtors in Virginia who have filed for bankruptcy are immediately under an automatic stay from being pursued or harassed by creditors. If the actions of a creditor are in violation of the automatic stay, the debtor may have legal recourse.
According to a report published by creditcards.com, approximately 43 million people across the U.S. have carried a debt balance on their credit cards in order to improve their credit scores. That amounts to 22 percent of American credit card users, and they may not be influencing their scores in the way they think. Carrying a balance is not among the five primary criteria that make up a Virginia consumer's credit score.
Virginia residents who are struggling to pay down debts and putting off filing for bankruptcy might be interested in the results of a report published in the Notre Dame Law Review. The report focuses on the pre-bankruptcy period, sometimes called the sweatbox. Researchers made use of data provided by the Consumer Bankruptcy Project, which gathered information from 3,200 bankruptcies filed between 2013 and 2016. The report takes information from 910 of the 3,200 bankruptcies and comes to some interesting findings.