If getting out of debt was easy, far more people in California would be doing it. Unfortunately, while getting into debt can happen faster than most people realize, paying off that debt can become next to impossible for some people. These efforts are often further complicated by collection efforts, especially if recently proposed rules are put into place. What some people may not realize is that Chapter 7 bankruptcy can effectively stop harassing creditors from contacting them.
The Consumer Financial Protection Bureau recently proposed new rules regarding debt collection practices. This includes allowing debt collectors to call borrowers as many as seven times per account per week. The new rules would also allow debt collectors to text and email consumers as frequently as they wish. The CFPB believes these new rules will help modernize the debt collection industry, pointing out that the Fair Debt Collection Practices Act has not been updated since its implementation in 1977.
Not everyone agrees that these rules will continue to protect consumers. Depending on how many accounts are in collections, some people could start receiving upwards of 70, 80 or even 90 calls each and every week. Unlimited texts and emails about debts can also be incredibly overwhelming. One of the major critics of the new rule pointed out that harassing consumers will not solve anything, because extra calls and text messages will not change a person's ability to pay.
Being in debt by itself can be extremely stressful. Suffering from overwhelming debt is often complicated by harassing creditors. For some California residents, Chapter 7 bankruptcy can be a sensible solution to both the problem of debt and creditors. Once a person files for bankruptcy, creditors may no longer contact them in an effort to collect on a debt. At the end of the process, a person's unsecured debts -- which includes credit card debt -- are discharged and they can move forward with their lives.