As anyone who has been harassed by creditors can say, the constant pressure of collection calls and letters can take a heavy mental toll on a person. This is especially true if the calls ever become more threatening or even malicious, which is not entirely uncommon.
People who are suffering from debt and collection calls can feel like there is no way out for them. However, a person can actually avoid dealing with creditor harassment through several different means. For example, certain monetary items are safe from creditors through creditor protection. The Asset Protection Society states that benefits, exemptions and other such things can usually be protected from creditors. This means that they cannot legally take your protected items away. Protected items can include life insurance policies, annuity contracts of up to $2,500 a month, ERISA benefits, homestead exemptions and disability proceeds.
There are also life insurance and homestead exemptions available. The limit on a homestead exemption can differ, but homestead exemptions will always apply to homes, home improvement, renovations, additions, land and property, mobile homes and any other expense that could be applied to a home.
The option to file for bankruptcy is also available for those who seek to end creditor harassment. The Pennsylvanian branch of the United States Bankruptcy Court states that those who file for Chapter 7 bankruptcy cannot have their assets touched by creditors for the duration of their bankruptcy period. The creditors will not even be allowed to contact the person in question during their period of bankruptcy, allowing the debtor time to recollect their thoughts and reorganize their life in peace.
Creditors can make a huge negative impact on a person’s life. However, they don’t have to stick around forever. With the right tools, anyone can keep creditor harassment at bay.