Fake Debt Consolidation Schemes To Be On The Lookout For Part Two
In the last article I spoke about potentially shady debt consolidation schemes that you should be on the lookout for. Read on to find out more:….
In the meantime, your creditors are not being paid. Unfortunately, while you are accumulating that payment, you are not paying your bills and you may be delving further and further into more debt.Instead of taking this gamble check out a not for profit credit counseling firm that might charge you only twenty dollars, if anything. Instead of billing the debtor, these non profit counselors will generally get what is called a fair share percentage payment from your creditors after your debts have been paid.
Finally, and most important, do NOT automatically trust in the debt settlement counselor who let’s you know that “We will handle everything. You should stop communicating with your creditors.” Despite the thought that the idea of not speaking to creditors and ignoring their mail sounds like it could be a real load off of your back, ultimately, it is your debt, your money owed and your credit score at hand. Never send in a change of address form directing all creditor mail to a debt settlement company.
It is key to remember that the creditor is the one with whom you signed your contractual agreement. When all of your statements are being sent to the debt settlement company, you relinquish that control. You do not know how much in late fees and interest are being tacked on. You also will not know if your debt has been transferred into collections.
A few final words of wisdom. If you think you need debt settlement, try debt management first. Get in touch with your creditors and request reduced interest, suspended payment or any other payment terms that may suit your financial situation more favorably. Although it may seem like a long shot, or a pain, it is always very important if you are about to miss a payment to call your creditor and say “Listen, I can’t make this month’s payment. I’d like to work something out with you.
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Divorce And Bankruptcy
Divorce, coupled with bankruptcy can pose serious problems for those involved. When a married couple who no longer wants to stay together have debts piling up and are heading for divorce, bankruptcy may be one way to sort out the financial problems. Bankruptcy has the capacity to be filed by just one spouse, or jointly. The effects of bankruptcy on divorce proceedings? Abrupt at best. An automatic stay will put a stop to all activities on divorce proceedings.
Even though one lawyer might seem difficult to deal with in a time of stress, two lawyers might be needed to sort the matters out, a bankruptcy attorney and a divorce lawyer to hash things out between the unhappy couple. Some good advice to take would be to immediately seek out a bankruptcy lawyer to guide you through your finance, in addition to the attorney who is assisting you through your divorce. The expert guidance with alimony, child support, property settlements, and other financial issues is key when you are suffering from the stress of bankruptcy and divorce simultaneously.
If the unhappy couple owes a large deal of shared debt, filing for bankruptcy jointly is a good option. This can even simplify the divorce settlement, and filing bankruptcy jointly is cheaper. If you are a spiteful ex, filing individually for bankruptcy is one way to send the creditors after your spouse.
Then there is the problem of property that you have accumulated during the marriage. That’s marital or community property. If you are filing jointly for bankruptcy, and your former spouse has marked some of your own separate property as marital property, you should take these actions. Firstly, you should attempt to prove what is yours is not community property. The bankruptcy court will release the exempt property, and the remaining property that you share will be part of the bankruptcy estate and therefore will be utilized for paying off debts.
After the bankruptcy court has figured out which property is exempt from bankruptcy, the divorce court can split the property between the spouses equally. The non exempt property will be sold by bankruptcy trustees (representatives) to pay off debts.
A different way to steer clear of financial loss on account of your former spouse’s debt is to attach a property of your spouse as a security lien. This lien will permit you to take hold of the property and utilize it to pay off your spouse’s loan if he or she is thinking of ditching and letting you pay. The property with a lien may get you less than the market price, but this is still a good way to protect yourself.
And in conclusion, you have the ability to work an indemnity clause into your divorce decree. This will help guard you from creditors who are coming after you to pay for your ex spouse’s debts after the divorce. If your husband or wife files for bankruptcy, don’t worry. The judge will enforce it to protect you and your finances.
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What Is A Collection Company Allowed to Do?
When and how does bill collection cross over the line into harassment and aggressive behavior? A bill collector is never allowed to use obscene language or threats of violence. However, they are allowed to insult your integrity and make you feel bad about the person you are.
Anecdotal stories about collectors asserting that a debt cannot be negotiated, settled or paid off more slowly have been circulated. Collectors have been known to rudely ask when a debtor is going to pay, and then reject a debtors offer as not enough. This is not true or acceptable, as a consumer you always have the ability to negotiate.
Bill collectors receive a commission, which may be why the persistent ones can be so hostile and aggressive. But the key thing is that even though you may owe money to a creditor, you always have the right to be treated like a professional, and you deserve that right. While collectors are prohibited from calling third parties such as co-workers, friends and family to spread the word that you are in debt, collection agencies are allowed to contact people who may know where you are if they are trying to find you.
Debt collectors especially are banned from threatening you with jail time,it has become a common tactic used by unethical agencies to intimidate immigrant communities. Finance experts such as Michael J Koopmans agree it is because there is less of a chance that these people will know or understand the law.
A bill collector cannot call you repeatedly, which technically means that they can’t continuously call you over and over. Still, that doesn’t stop them from calling you two, three, even four times a day. With some companies, collectors are given a small number of accounts to work with purposely so that they can badger a consumer in debt into paying for their commission. To put a halt on collections phone calls, it is possible to send a letter by certified mail return receipt requested requesting that they no longer contact you over the phone.
Mallory Megan is employed by a debt collection agency. She also writes articles on business and finance, consumer spending and collection agencies. Don’t reprint this exact article. Instead, reprint a free unique content version of this same article.
Debt Collectors Or Debtors: Who Is Suing Who Now?
It is true that Americans with overdue debts will typically be subject to a number of retributions. Collection letters, phone calls, unfavorable credit scores and a chance to wind up in court are examples of punishments for non-compliance.
A new trend that is growing however is for debtors to sue debt collectors first. Any violation of the Fair Debt Collection Practices Act can be reason to take a collector to court. It might be true that in a declining economy suing a debt collection agency instead of paying off what you owe may be your only choice. There were 8,347 consumer lawsuits filed against collection companies in 2009. That\’s a 55 percent increase over 2009 and double that number filed in 2007.
A portion of the debtors are plaintiffs suing for the first time, who suddenly find themselves unable to pay debts, and they feel that they have been wronged by aggressive collectors. Others compulsively sue. Usually these people have debts worth tens or hundreds or thousands of dollars. It is their hope that favorable judgments may put them on a \”collections blacklist.\” If he has sued 4 out of 5 debt collectors, debt collection agencies are probably going to want nothing to do with this strange character who puts time and effort into lawsuits when he could be looking for a sense of structure, and a job.
One example of a lawsuit in action was from a woman who complains that the collection agency never offered her proof it was entitled to collect. Seriously? Most debt collection companies adhere closely to FDCPA laws, but even that law is not clear on certain practices such as whether it\’s legal or not to leave a voice mail. Basically, the FDCPA hit the scene in the 1970s and needs desperately to be updated to today\’s technology.
You might not want to know my opinion, but here it is. I was contacted by a debt collector who left a message on a third party phone, asking for me and letting me know she intended to collect a debt. This is a big no-no. I could have called her and given her hell, but I know why I have the debt and even though I may be broke, I intend to pay it back. To me, it seems like the economy is not getting better any time soon as the number of people who refuse to hold themselves accountable for financial decisions they made in the past grows. I hate to say it, but a debt is a debt, whether we are in a recession or not, whether your bill collector is nice or not.
Mallory Megan is employed by a debt collection company. Also, she does articles on business and finance, the credit industry and debt collection Get a totally unique version of this article from our article submission service