Bankruptcy is an option for individuals that cannot pay their credit card debt or medical bills. Bankruptcy gives individuals more time to pay their bills. It also stops collection agencies from contacting creditors about their debts.
Under the Fair Debt Collection Practices Act, collection agencies are allowed to contact a relative once to ask for contact information such as a phone number or address. They are not allowed to discuss payments with relatives. The Act also imposes other limits on creditors. If the creditor violates the Act in their collection efforts, they can be made to pay the debtor as a result of their violation