Sep
06
Archive for the ‘Bankruptcy Information’ Category
Sep
06
Foreclosure Rescue Scams
The Federal Trade Commission published an excellent brochure on foreclosure rescue smam artists. The article below is culled from their materials.The possibility of losing your home to foreclosure can be terrifying. The reality that scam artists are preying on the vulnerability of desperate homeowners is equally frightening. Many so-called foreclosure rescue companies or foreclosure assistance firms claim they can help you save your home. Some are brazen enough to offer a money-back guarantee. Unfortunately, once most of these foreclosure fraudsters take your money, they leave you much the worse for wear.Fraudulent foreclosure “rescue” professionals use half truths and outright lies to sell services that promise relief and then fail to deliver. Their goal is to make a quick profit through fees or mortgage payments they collect from you, but do not pass on to the lender. Sometimes, they assume ownership of your property by deceiving you, the homeowner. Then, when it’s too late to save your home, they take the property or siphon off the equity. You’ve lost your home to foreclosure despite your best intentions.If you think you may be facing foreclosure, the Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to know how to recognize a foreclosure rescue scam. And even if the foreclosure process has already begun, the FTC and its law enforcement partners want you to know that legitimate options are available to help you save your home.
How the Scams Work
Sep
06
The Debt Buyers Just Sued Me
You are served with court papers and find out that a company you never heard of, say, Asset Acceptance, is suing you.They purchased the debt from your old credit card company. In what has now become a huge industry, credit card issuers and large banks are selling the charged off debts, which is to say the debts that they can no longer show as assets on their books, to companies that them for pennies on the dollar, then try to collect them. When the deal goes down, the debt buyer receives a one page computer printout with your name, balance and account number. No contract, no statements, no accounting of even principal and interest. In short, not enough for them to use in a lawsuit, but they debt buyers don’t care.The debt buyers know that most people do not even respond to lawsuits. Once the debtor fails to repond, the debt buyer gets a default judgment and moves to garnish your check or levy your account. The debt buyers and their attorneys know that they don’t actually have enough to proceed in a lawsuit if they meet resistence and, when push comes to shove, they will often dismiss their lawsuit if a response is filed.
Sep
01
Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act places severe limits as to when and how debt collectors can contact you. A “debt collector” is a third party, such as a collections agency, that tries to collect money owed to someone else. It is very important to remember that the Fair Debt Collection Practices Act only places limits on the actions of third parties and not on original creditors. Some of the more important constraints placed on debt collectors include:
Aug
30
Predatory Lending Association
Nearly anyone on the cusp of filing bankruptcy can tell you that the content on the Predatory Lending Association is no more than a stone’s throw from the truth . Read it and you will laugh so that you don’t cry.
The site offers tools that would be coveted by any predatory lender such as a “working poor finder.” The site also offers valuable business insights as in the difference of “just a few blocks” can greatly increase profits. Consumer testimonials boast, “I would have been homeless two weeks sooner without my payday loan”, and debunks “myths” like “Debt traps are a bad thing.”
Aug
30
Disabled Veterans and Enhanced Eligibility for Chapter 7
The means test bars any number of deserving people across the states of Oregon and Washington from qualifying for Chapter 7 bankruptcy. Thankfully, disabled veterans filing for bankruptcy whose debts were incurred primarily during active military duty or homeland defense service are completely exempt from the means test.
Jul
31
Automatic Stay
After you file for bankruptcy, the automatic stay offers potent legal protection against bill collectors.
When you file for bankruptcy, the automatic stay immediately stops any lawsuit filed against you and most actions against your property by a creditor, government entity, or even a collection agency . Moreover, if you are at risk of being foreclosed on, being evicted, being found in contempt for failure to pay child support, or losing such basic resources as welfare, utility services, unemployment benefits, or your job due to garnsihments, the automatic stay may provide a powerful reason to file for bankruptcy. + Read the full Entry
Jul
26
Your Credit Rights
The Federal Trade Commission (FTC) enforces the credit laws that protect your right to get, use and maintain credit. Much of the text below was taken from an article published on their web site.
A good credit rating is very important. Businesses inspect your credit history when they evaluate your applications for credit, insurance, employment, and even leases. They can use it when they choose to give or deny you credit or insurance, provided you receive fair and equal treatment. Sometimes, things happen that can cause credit problems: a temporary loss of income, an illness, even a computer error. Solving credit problems may take time and patience, but it doesn’t have to be an ordeal.
Jul
26
Classes Before and After Filing
The article below is culled in large part from an article that can be found on the Federal Trade Commision web site, the link for which can be found on this blog.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 launched a new era: With limited exceptions, people who plan to file for bankruptcy protection must get credit counseling from a government-approved organization within 180 days before they file. They also must complete a debtor education course to have their debts discharged.
Jul
20
Fair Debt Collections Act
The Federal Trade Commission published an excellent overview of what constitutes acceptable behavior on the part of collections agencies. As you read it, do keep in mind that going after collectors for violations requires documenting the actual offenses. To that end, our firm has developed an excellent log for putting a case together against a bad collector. Feel free to contact me at thomas@nwdrlf.com if you would like a copy. A summary of the FTC brochure appears below:
