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Woman has overwhelming debt forgiven by the creditor

Many Americans have been hounded by aggressive bill collectors lately. Many claim the recent recession was partially caused by the overwhelming debt of consumers. However, sometimes these bill collectors are unscrupulous in their practices and end up going after consumers who do not owe the debts that the collector claims they owe. Many consumers in Texas and elsewhere are discovering that their old debts have been forgiven, yet the bill collectors continue to harass.

One 79-year-old woman experienced this problem with an old medical debt that she incurred over a year ago. The injury occurred in March 2011 when the woman took a fall in her kitchen leaving her with a broken leg. This required the woman to stay at the local medical facility for treatment. She accumulated $1,100 of medical debt as a result of the incident.

After the woman failed to pay the medical bill, a third-party collection agency began making calls to demand the money she owed. The woman began a payment plan of $50 per month. However, the woman was only able to make three months worth of payments before she received a letter from the hospital that stated her debt was being forgiven. The woman then alerted the collection company that her debt had been forgiven. However, the collection company continued to keep making harassing phone calls to the woman.

The woman was able to eventually make the collection company stop harassing her with phone calls. However, there are many consumers in Texas, whose debts have not been forgiven. Individuals that are experiencing overwhelming debt may want to consider filing for bankruptcy as a responsible means of confronting difficult financial issues. Bankruptcy can potentially clear away many, if not all, consumer debts. Those whose obligations have outdistanced their income and assets may gain by investigating their rights under the Bankruptcy Code.

Source:, "KCTV5 Investigates: Rogue debt collection practices," Chris Oberholtz, Nov. 7, 2012

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