Fair Debt Collection

• As a debtor, certain protections under the Fair Debt Collections Practices Act, or FDCPA, protect you from creditors. The Federal Trade Commission, or FTC, which is America's largest consumer protection agency, enforces the FDCPA. The creation of the Act was in response to an abundance of evidence that many debt collectors were engaging in abusive and unfair debt collection practices. Even after a creditor obtains a judgment for a debt owed, you can send a cease contact letter, also known as a cease and desist letter, if you fit the criteria for being judgment proof.
  
  

Judgment Proof

• You are judgment proof if you have little to no assets from which a creditor can collect payment of a judgment. Your state's statutes determine if your net pay is low enough for you to be judgment proof. You must first be able to pay for the necessities of life, such as shelter, food, clothing and transportation, before a creditor can collect any money from you. You can also qualify as judgment proof if your only source of income is from a protected source, such as Social Security, child support or public assistance benefits.
  
  

Cease Communications

• Typically, you may consider sending a cease communications letter to a creditor in three types of circumstances: you feel that the creditor of the alleged debt is in error; the creditor engaged in abusive or deceptive collection practices and failed to verify the alleged debt; or you meet the criteria for being judgment proof and cannot pay the debt. Under the FDCPA, debt collectors are prohibited from harassing you, making false statements or threats in an attempt to collect a debt, and they are limited to when and where they can contact you. You can send a cease contact letter to a creditor by certified mail, requesting the end of all communication attempts.
  
  

Notification Letter

• If you become judgment proof because of a job loss, divorce or disability after you receive a judgment against you, you can write a notification letter to the creditor to leave you alone. Your letter should clearly explain the reason you are unable to pay your debt. If you have other income or assets that are exempt from garnishment or liens, let the creditor know. Finish the letter with a polite request to cease all contact attempts, both at home and work.