Process

• Credit card companies and other creditors may eventually close delinquent accounts and turn them over to debt collectors. For example, MSN Money reports that credit card companies typically close accounts after the account is six months past due. However, charge-off is possible sooner. After charge-off, a creditor assigns or sells the account to a debt collector. A charge-off is simply an accounting term and does not relieve the debtor of responsibility for the debt.
  
  

Notice

• Debt collectors usually begin debt collection efforts by contacting the debtor by telephone. Federal law requires the debt collector to follow up with a written notice about the debt within five days of the initial contact. The Neighborhood Economic Development Advocacy Project, a nonprofit consumer advocacy organization, reports that debt collectors must provide information, including the amount of the debt, the name of the creditor and steps the debtor can take to dispute the debt. The letter must also state that the debtor has 30 days to challenge the dispute by sending the debt collector a letter.
  
  

Verification

• Forcing the debt collector to verify the debt is a viable strategy for stalling the debt collection process. The debt collector will need at least several weeks to obtain billing statements and other documentation from the original creditor. That gives the debtor time to prepare a strategy for paying the debt. Options include payment plans or debt settlement. Unsecured debt, such as credit cards, are often resolved, or settled, for 20 to 70 percent of the balance, according to "SmartMoney" magazine. Disputing the debt also protects the debtor's rights. The Fair Debt Collection Practices Act allows the debt collector to consider the debt valid if the debtor does not dispute the debt within 30 days. Once the debt is valid, the debt collector can use all legal debt collection methods -- including the filing of a lawsuit in civil court.
  
  

Records

• People managing delinquent debt should make notes of all conversations with debt collectors and get as much information as possible in writing -- including verification. Calling the debt collector to dispute a debt does not protect a person's rights under the Fair Debt Collection Practices Act. Disputing the debt in writing is essential, because a written dispute forces the debt collector to end all collection efforts until after providing the debtor with the proper verification.