In Spain, Your Bill Collector May Come For You In A Top Hat
Would you be mortified if someone in a top hat and tuxedo followed you into a restaurant and quietly joined your lunch date? How about three men with more to love dressed like superheroes asking your neighbors for donations to help you in your financial situation?
In Madrid, make sure your bills are paid off or you might be visited by one of these strange characters. The recession has hit Spain hard. Official figures demonstrate that the unemployment rate has sky rocketed, reaching 19.3 percent. That is one of the highest rates in Europe. Around four million people are not working. That’s the same number of jobless people as France and Italy put together. One business is flourishing however, that business is debt collection.
Spanish law is pretty lax when it comes to paying back debt. They allow 95 days to settle bills, not like the 30 day time periods in other parts of Europe. This ,in addition to the fact that Spanish courts give the matter low priority put collection companies in high demand.
One company, El Cobrador del Frac – which translates in English as “The Debt Collector in Top Hat and Tails” – boasts more than 250 collectors, and an equal number of investigators and secretaries.Their goal is to work out some deal and retrieve retribution, not to run after people without the means to pay the bill.
For the company, the new and most popular business is coming from constructive trade which is suffering from a huge slowdown. Homeowners owe money to contractors, contractors owe money to construction companies, construction companies owe equipment makers, and so forth and so on.
Last year, the agency had a wedding company contact them over a couple who did not pay the $83,000 bill for their extravagant wedding. The agency obtained a wedding guest list and began calling up guests one by one on the phone and asking them if they had the chicken or the lobster, and then asked them where to send the bill. Eventually the shamed couple paid up.
These ideas are interesting, (I guess that’s one way to describe it) but they won’t be this effective in due time. In this time of crisis, too many people have debts and they honestly can’t pay. And to these people, it doesn’t matter how much you humiliate them.
Mallory Megan is employed by a debt collection agency. She also writes stories on business, finance, consumer spending and collection agencies. Grab a totally unique version of this article from the Uber Article Directory
Debt As Opposed To Bankruptcy
With consumer debt at an all time high, owing a debt can seem very overwhelming. A lot of people have looked into the internet and have seen advertisements claiming debt relief as a quick fix. Alluring as these ads may seem, it is important to be on the lookout for the validity of the claim.
While many of these promise a quick fix, that quick fix may be bankruptcy. And yes, bankruptcy is one way to address your financial issues, but in most cases it should be seen as a last resort. The fact that you claim bankruptcy remains on your credit report for ten years which means that your chances of getting credit, jobs, a place of residence, or insurance are significantly lowered.
It’s always a smart move to think about other options before deciding to file for bankruptcy. Speak with your creditors. Most of the time a re-payment plan can be etched out that is changed or can be paid in installments. Credit counseling services can work with you and your creditors to make debt repayment plans.
If you are considering a second mortgage, be careful. These loans require your house as collateral. Bankruptcy can stop foreclosures, debt collection activities and it may get rid of unsecured debts. Exemptions are provided that let you keep certain assets. However, personal bankruptcy does not usually eliminate child support, fines, taxes, alimony and in some cases student loans.
It will not usually permit you to keep your property if your creditor has a security lien or mortgage that has not been paid. A relatively recent tweek in bankruptcy laws makes certain hurdles that you have to overcome before you can even file for bankruptcy, it doesn’t what type of bankruptcy. First, you have to get credit counseling from an organization approved by the government within six months before filling.
Bear in mind that in certain cases you need to pass a test that requires you to confirm that your income level does not exceed a certain amount.
Mallory Megan works for a collections agency that works with a debt collection lawyer. Also, she does articles on business and finance, the credit industry and collections agencies. Get a totally unique version of this article from our article submission service