What happens if I cannot afford to pay a debt collector?

If you are unable to afford to pay a debt collector in South Dakota, the debt collector must pursue within the legal limits of Collection Defense Law. This law outlines the rights of consumers who are struggling with debt. First of all, debt collectors may not use unfair or deceptive practices in an attempt to collect a debt. This means they cannot threaten to sue you or take legal action when they have no intention of doing so. They also may not harass you by calling you repeatedly or making threats. If you cannot afford to pay a debt collector, they may not attempt to sue you or garnish your wages without notifying you first. The notification must include specific information about the debt and must be sent through the mail. Once you have received notification, you have 30 days to dispute the debt. You may also try to negotiate a settlement with the debt collector. In this case, you would set up a repayment plan for the debt that you both agree to. This would lower the amount due and may be more manageable for your budget. Finally, if all else fails, you may be able to file for bankruptcy which would protect you from further collection attempts by the debt collector. However, be sure to speak to a financial advisor or attorney before taking this action as there may be long-term consequences.

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