How to Deal with Collectors When You Can’t Pay off Debts

looking at finance data

If you are having trouble making ends meet while dealing with overwhelming debt, you have options. One of the first steps debtors should take is to discuss their financial situation with collectors.

Creditors have one goal – to collect the amount owed. They will call you endlessly until they get the money that is owed. However, there are various steps you can take to deal with collectors early on and avoid major headaches. Our team at Jacovetti Law, P.C. explains how to deal with collectors if it’s been challenging for you to pay off debts.

How to Deal with Collectors

Debt collection starts when you are past due on bills – whether it’s medical bills, car loans, credit card bills, or anything else you owe. In most cases, creditors will give you about three months to pay off bills until they send a creditor to collect the owed amount.

The first step you need to take to deal with collectors is to determine how much disposable income you have left at the end of every month. Calculate how much money you need to put towards food, utilities, shelter, and transportation. Once you’ve determined your living expenses, you will identify how much money you have left to pay off bills. Knowing how much money you have leftover will help you with negotiations.

Creditor Negotiations

Creditor negotiations are a great first resort to deal with overwhelming debt. You can contact the collectors and explain your situation. Let them know that you are having a hard time making payments and are willing to negotiate with them to make payments that work for you. It’s important to put the settlement offer in writing. This could help you get out of your difficult financial situation.


Filing for bankruptcy is another way to deal with collectors. If you know that you can’t make ends meet, bankruptcy is an effective way to stop creditor harassment and put an end to your debt. You can apply for Chapter 7 liquidation bankruptcy to get a fresh start in as little as four months or apply for Chapter 13 bankruptcy to reorganize all of your debts into a three to a five-year payment plan.

Not sure which course of action is best for you? Contact our debt relief attorneys today at (516) 217-4488 to schedule a consultation!

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