United States Bankruptcy Attorneys

Debt Relief

Unsecured Debt (HTML)
Secured Debt (HTML)
Fair Debt Collection Practices Act (HTML)

Unsecured Debt (HTML)
If you are behind on your bills, some creditors may turn your account over to a debt collector. There are really only three (3) things a debt collector can do to you if your debt is unsecured.

1. Stop doing business with you;
2. Report you to a credit agency; and
3. Start a lawsuit.

There may be consequences if a lawsuit is won and a judgment entered. Your wages (and in Community Property States, Spouse’s wages) could be garnished and other collection activity could take place.

The fear of a judgment is often worse than its actual effects. If a lawsuit has been started already, United States Bankruptcy Attorneys may be able to help.

• You may have defenses to the claim against you. For example, the claim could be reduced if there is a warranty, if the creditor did not apply the terms set out in the loan documents, if there were violations of TILA, the Truth in Lending Act, or if payments you made were misapplied.
• Hiring a lawyer might stop the collection agency from filing the lawsuit. Many times, the debt collectors count on fear and intimidation to stop people from defending their rights. Once you hire a lawyer, and they know you intend to assert your legal rights, they may simply stop further legal action.
• If you receive papers starting a lawsuit, called a Summons and Complaint, whether in person or by mail, it is very important that you respond by the deadlines given. If a default judgment is entered, it is usually more difficult to deal with the underlying debt. At United States Bankruptcy Attorneys, we help you decide how you should respond to a lawsuit.

Secured Debt (HTML)
If your debt is secured by your house, your car, or other household property, the creditor may have the right to repossess these assets and sell them to repay their debt. Dealing with secured lenders often will require the assistance of a qualified bankruptcy lawyer.

Fair Debt Collection Practices Act (HTML)
The Fair Debt Collection Practices Act, known as FDCPA, is a law to protect consumers from unethical debt collectors and lawyers. It does not apply to business debt, and it does not apply when a creditor, using its own name, is collecting its own account. Once a debt has been assigned to a collection agency, the law will apply.
Under the FDCPA, debt collectors and lawyers are required to respect your privacy. They are not allowed to use deceptive, abusive, or harassing tactics to collect a debt. In addition, the collection agency has duties to you under FDCPA.

• The collection agency or attorney must stop contacting you if you make the request in writing or if you dispute the debt in writing.
• The collection agency or collection lawyer must send you a written notice within five days of initial communication that explains your rights.

DEBT COLLECTORS ARE PROHIBITED FROM DOING MANY THINGS.

• With only a few exceptions, collection agencies are not allowed to communicate with relatives, neighbors, employers or coworkers, or friends about your debt without court permission.
• Collection agencies or collection lawyer may not call at unusual or inconvenient times. Usually, they are allowed to call only between 8:00 a.m. and 9:00 p.m.
• Contacting you at work if they know that you are prohibited from getting personal phone calls.
• Using obscene, derogatory or insulting remarks, including racially biased language.
• Telephoning repeatedly or too frequently.
• Making false or misleading statements to collect the debt, including telling you that you owe more than you do.
• Threatening arrest or loss of child custody.
• Saying they will sue you if they do not have any intent to sue.
• Depositing post dated checks before the date on the check.
• Failing to disclose that the collector is attempting to collect a debt.
• Threatening to take property when they have no right to do so.

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