Can a debt collection agency commence bankruptcy proceedings against me?
No, a debt collection agency cannot bankrupt you in an effort to collect unsecured debt. Unsecured debt is not tied to any property so there is no collateral which can be collected to satisfy the debt. However, after a certain period of time of attempting to collect the debt from you, they can sue you and place a judgment against you. This may require you to sell some of your assets to settle the judgment as this will appear on your permanent credit history and is taken very seriously when you try to apply for jobs, loans, or future grants of credit. Speak to a debt settle attorney to be aware of your legal rights.
Talk to a Debt Settlement Lawyer and find out what legal options you have for eliminating or negotiating down your debt while avoiding creditor lawsuits.