Individual phone collectors will be given a portfolio of accounts, and the bulk of their workday, every day, will be spent working them. Debt collectors are subject to frequent performance evaluations and the bulk of their money is earned from personal commission payments. Thus, the size of a debt collector’s paycheck depends on how successful he or she is at collecting from debtors. This factor, coupled with relentless confrontations with angry and sensitive debtors, makes for an extremely high stress job with high employee turnover.

If a debt collector attempts to reach a debtor and gets in touch with someone else, they are legally banned from letting this person know that they are calling about a debt. Each state has its own laws that debt collectors must abide by, and sometimes, the collector can speak to the debtor’s spouse.

If a collection agent gets an answering machine or voicemail, they will usually leave a message, but theoretically someone besides the debtor might hear it. Therefore, the details of the call will not be disclosed, and the tone of the debtor will be apathetic. Collection agencies generally have to provide a toll free number so that it does not cost money for the debtor to return the call.

When the collection agent gets a debtor on the phone, they will start out with what is called a “mini Miranda.” Just like your Miranda rights, which let you know that “anything you say can and will be held against you in a court of law,” the mini Miranda tells the debtor that this is in fact an attempt to collect debt, and any information disclosed will be used for that purpose. This is generally what separates a mediocre debt collector from an excellent one. A mediocre collector will often do most of the talking, but a skilled collector develops good listening skills to ferret out important information.

Therefore, debt collection phone calls are generally recorded, and any key information is written down on the debtor’s permanent record. Key information includes anything that could be used to ascertain the probability that they could successfully collect, or if taking legal action could be a good decision. In other words, if the debtor mentions that they are employed, makes mention of assets, or admits that they owe the debt, this is very encouraging for the collector and could be used in future litigation.

Mallory Megan works for Rapid Recovery Solution and writes articles on medical collection agencies Check here for free reprint licence: I Have A Collection Agency On The Phone! What Now?.

Layoffs and pay cuts motivated more people into looking into bankruptcy throughout the last year, and authorities allege that the situation will probably not going to improve until the unemployment issue improves. In Wisconsin, bankruptcy filings sky rocketed to 30 percent in 2009. This came on top of a 35 percent increase in the preceding year.

According to bankruptcy attorneys not only is it firings and layoffs that are motivation to file. It’s the loss of once-regular over time pay and full time status that have left people unable to keep up with monthly payments that are once were not an issue to pay.

U.S. Bankruptcy Court records reveal that there were 27,413 bankruptcy petitions filed in Wisconsin last year. More than 80% were Chapter 7 cases. Chapter 7 cases wipe out medical bills, credit card balances, and other types of debt. Recent Research by The Associated Press illustrated that more than 1.4 million bankruptcies were filed in 2009, an increase of about 32% from 2008.

And even though bankruptcy absolved the impending debt and offers consumers a fresh financial start, people often stay unemployed and are unable to find employment to get a decent income agency.

As if the news couldn’t be worse, unless the economy gets good enough for industries to start hiring again, there is little reason to expect that bankruptcies will go down in 2010. Researchers have noted that home foreclosures will continue to pile up in 2010 because people who previously had OK credit have lost employment and cannot keep up with payments.

Bankruptcy could seem like a good option to get a fresh start, but it has a negative effect on your credit report for ten years, leaving you unable to get a car, place of residence, or employment. Before declaring bankruptcy, it might be a wise decision to speak with your creditors and see if some sort of repayment plan can be worked out.

Mallory McGuinness works for a debt collection agency. She also writes articles on business and finance, consumer spending and collection agencies. This article, Economic Ituation Looks Dismal is released under a creative commons attribution licence.

In the last article in this series I wrote about how long different marks remain on your credit report. I mentioned that mistakes will be removed immediately, soft inquiries will have no effect, and hard inquiries can hang around on your credit report for two years. Late payments have the capacity to do way more damage.

Even though some creditors may opt to show you mercy and erase past credit problems if you pay your account immediately, late payments can have stay on your credit report for seven years. Luckily, these negative marks are common and do less damage to your score than the rest of the marks I will go on to discuss.

With a tax lien comes seven years of bad credit. When you do not pay your income or property taxes when they were due, and the government comes in and takes ownership of your property, you are dealing with a tax lien. Unlike creditors, no matter how fast you settle your tax lien, big brother is annoyed that you made him go out of his way to take your property, and it will stay on your record for seven years.

Foreclosures are equally as dismal and they will stay on your credit report for seven years. Foreclosures are seen as one of the worst negative accounts that can be on your credit report. In fact, if you do have a foreclosure on your credit history, good luck buying another home unless you are planning to pay for it entirely in cash.

It’s not the good old days anymore, so never default on those student loans either. Before the administration of President W., student loans generally were forgiven if they were declared when someone filed for bankruptcy. Now times have changed, so it’s crucial to pay your student loan debts. After 270 days of nonpayment, defaulting occurs, and before the loan defaults, you can bet your life that you will be the unlucky recipient of a whole slew of late payment fees.

The last, and most serious negative mark that can go on your credit report is bankruptcy. Bankruptcy will stay on your record for ten years, and instead of having a creditor pull your report, you may as well call them up and say “I am fiscally irresponsible and will be that way for the next ten years.” Declaring bankruptcy can hinder your ability to get a new car, any type of new credit or a new place to live. So watch your credit report, or you might end up living with that rude mother in law I wrote about in article one.

Mallory Megan works for Rapid Recovery Solution and writes articles on commercial collection agencies. Also published at How Long Will A Negative Mark Remain On Your Credit Report Part Two.