debt repayment
Know your rights-don’t become a debt collector harassment victim
One of our previous blog posts talked about the extreme measures debt collectors use to hound people with outstanding debt. Experts believe that many of these tactics border on harassment and may even be illegal. In this rough economic climate, anyone can fall into financial trouble and seek bankruptcy protection or debt relief. Simply having outstanding debt does not make someone a criminal, which is why debtors are granted certain federal protections under the Fair Debt Collection Practices Act (FDCPA).
The nonprofit organization Privacy Rights Clearinghouse is an advocacy group that helps consumers figure out how to manage aggressive debt collectors. Privacy Rights Clearinghouse provides a list of tips that consumers can use when dealing with a debt collector for the first time.
One of the upmost pieces of advice offered by the organization is to make sure you understand exactly why a debt collector is calling you. Are you actually behind on your payments to a creditor or has there been some confusion within the debt collection agency. Furthermore, is it possible that an identity thief has hacked into your personal information and racked up debt under your name? Knowing the details of your specific situation is vital to eventually getting the collector off your back.
Privacy Clearinghouse also stresses that debtors should keep a record marking each time they are contacted by a collection agency, including dates, names, and details of the conversation. Carefully documenting a debt collector’s actions and words could help bolster your harassment case later on. Make sure to especially note any abusive or inappropriate language used by the collector.
Finally, the organization encourages consumers to never pay a bill if they don’t agree with the charges. In effect, by agreeing to pay the bill individuals are accepting responsibility for the debt and will therefore find it much harder to challenge the payment later on.
These are just a few of the tips available to potential debt collector harassment victims. If you find that your debt has become too overwhelming and you need some financial assistance, a bankruptcy attorney can discuss your options and help you protect your rights.
Source: Privacy Rights Clearinghouse, “Debt Collection Practices: When Hardball Tactics Go Too Far.” Last revised January 2011
Debt collectors accused of illegal harassment using Facebook
Debt can pile up for any number of different reasons. Individuals may fall into a patch of financial difficulty after running into an unexpected expense or suddenly finding themselves out of work. Small business owners may find themselves in debt after making a high-cost investment in their trade or losing customers to a competitor.
When a person’s outstanding bills exceed their available assets, they risk accumulating a large amount of credit card debt or finding themselves in need of bankruptcy protection. In these cases, debt collectors are charged with the job of making sure that individuals with outstanding debt make their payments. Recently, however, US debt collectors are receiving a lot of negative attention from the media regarding their hostile and underhanded methods of forcing people to pay.
According to some reports received by organizations such as the Federal Trade Commission and the Better Business Bureau, debt collections agencies are authorizing their employees to use collection tactics which many people believe border on harassment. Individuals have reported instances in which collectors contacted them through the social media website Facebook, leaving public and humiliating messages on their wall.
Representatives from the Federal Trade Commission have also heard of instances in which collectors assumed a fake identity on Facebook in order to collect a debt. Since the social media site allows users to choose who can see their personal information or post messages to their page, collectors have allegedly pretended to be an individual’s friend in order to gain access to their account.
Posting information about an outstanding debt in a public place is prohibited by the Fair Debt Collection Practices Act. Many consumers are wondering how and when the government will take action to stop debt collectors from using illegal strong-arm tactics.
Source: MSNBC, “Debt collectors trolling Facebook.” Herb Weisbaum, 3 May 2011
Finding the Best Debt Resolution Option with a Colorado Bankruptcy Attorney
Having the vast majority of your debt eliminated and getting a clean, fresh start would seem like a highly favorable option, but filing a bankruptcy for eliminating debt isn’t always the best option. Many people consider pursuing a bankruptcy prior to considering the many other possible avenues of debt resolution because they believe that it will be the fastest and easiest way to get out from under a mountain of debt.
Prior to pursuing a personal or business bankruptcy it is critical that you speak to an experienced Colorado bankruptcy attorney to determine whether filing is a viable option for your situation. In many cases, an experienced Colorado bankruptcy lawyer may advise you to pursue another debt resolution effort, like negotiating with creditors, rather than attempting to file for bankruptcy protection.
A qualified bankruptcy attorney will thoroughly evaluate your financial situation and work to determine the best course of action for your unique financial situation. Bankruptcy is a very involved process that should be reserved as a last resort and pursued only when other debt relief options have been exhausted.
In order to get out of debt as quickly and with as few headaches as possible you need to make the most educated decision when it comes to your avenue of debt relief. If you’ve got financial problems you should immediately seek the help of a Colorado bankruptcy attorney in order to determine the best course of action for debt resolution for your unique financial situation.
Determining your Personal Debt Relief Options with a Colorado Bankruptcy Attorney
When the stress of personal debt begins to build and monthly bills become difficult or impossible to keep up with, filing a personal bankruptcy may seem like the most obvious choice for your debt relief. While you may have a basic understanding of how bankruptcy protection can help you to reduce or eliminate your financial stress, determining which bankruptcy would most effectively suit your situation can be fairly difficult to determine.
You may come to find, following a bit of research, that you’ve got more than one option available to help you resolve your consumer debt. At this point it becomes critical that you choose the path that will be most suitable for your individual level of debt in order to gain control of your finances again in as little time and with as few headaches as possible.
Finding the most appropriate path of personal debt relief is much easier if you enlist the help of an experienced Colorado bankruptcy attorney as early on as possible. A Colorado bankruptcy attorney will quickly be able to determine what courses of action are available to someone in your financial situation and outline the specific details of each individual option.
By enlisting the help of a Colorado bankruptcy attorney you can feel confident that you’ll be embarking on the most logical and easiest course of action in order to relieve your personal debt and that you’ll be on your way to living free of the burden of your consumer debt in as little time as possible.
No Fear apparel chain files for Chapter 11 protection
Last week, No Fear, a clothing store targeted towards extreme sport enthusiasts, joined the string of retailers recently struggling with financial difficulties. No Fear Retail Stores, Inc. officially filed for Chapter 11 bankruptcy protection. The petition was filed voluntarily in the Southern California bankruptcy court, but the decision affects No Fear locations across the nation, including Colorado.
Filing for Chapter 11 bankruptcy protection will allow the company to restructure its debt and establish a functional repayment plan with its creditors. No Fear’s CEO stated that the harsh economic climate is the main motivation behind the company’s decision and claimed that debt reorganization would help return No Fear to solid financial ground.
No Fear has stated its intention of continuing business operations during the Chapter 11 proceedings. However, No Fear’s CEO was forthcoming about the company’s decision to close a variety of stores which have been deemed unprofitable. His public statement emphasized this and other drastic efforts by the company to reduce its expenditures and attract new business.
Before filing under Chapter 11, company executives spent time considering a variety of bankruptcy alternatives, but came to the conclusion that its growing debt was simply too overwhelming. At the advice of legal and financial consultants, No Fear decided that Chapter 11 bankruptcy protection best suited the both the needs of the company and its customers.
After filing for bankruptcy, payment claims from No Fear’s creditors became public information. These claims report that retailer chain owns its largest creditor-Credit Cash NJ, LLC-well over a million dollars.
Source: Transworld Business, “No Fear Files for Bankruptcy Protection, List of Creditors Revealed.” Josh Hunter, 28 February 2011
Americans May be Aware of Debt, But Research Shows We Have not Stopped
Americans during this economy have become extremely aware of the fact that the country is in debt, and even more so, a significant number of individuals have felt the financial strain. Even while the income that a lot of people bring in each month is barely enough to cover the necessary bills, one study shows that Americans have again begun to slip further into individual debt.
American citizens have collectively experienced a $6.5 billion increase in the amount of credit card debt accumulated in the past quarter year. According to CardHub.com, most of the debt calculations fail to include the amount of debt that banks have charged off. Researchers took a second look at the data reported by the Federal Reserve and found that in the past few quarters, banks had charged off about 8.5-10.9 percent of their debt, and when debt is in the millions, that amount can be extremely large.
CEO of CardHub reported that “the alarming part is in this quarter, Americans got $6.5 billion more in debt, and if you look at the increase in debt between the second and third quarter combined, that’s 11% higher than the increase last year.” Researchers cited the fact that Americans had managed to reduce a portion of their debt in early 2009 and 2010, but that as the year went on, debt repayment was down 9 percent.
Predictions made based upon the report estimate that by January 1, Americans will have completely canceled out the debt repayment progress they made in the past couple years.
Source: Wallet Pop “Research Shows We’re Digging Ourselves Back Into Debt” Martha C. White 12/8/10