http://www.alloza.net Fri, 30 Jul 2010 17:15:13 +0000 http://wordpress.org/?v=2.8.6 en hourly 1 http://www.alloza.net/debt-collection-protection.cfm http://www.alloza.net/debt-collection-protection.cfm#comments Tue, 27 Jul 2010 01:43:12 +0000 admin http://www.crawbot.co.cc/?p=1215

People that are in debt are often scared of debt collectors, but in fact (unless you have borrowed money from a loan shark or the criminal underworld) they have very little to worry about. Debt collection protection laws exist in many countries (certainly in the UK) and actually give very little power to the debt collector and a lot of protection to the debtor.

The best idea if you are experiencing problems with debt collectors is to seek qualified advice since the range of rules per country/state are very complicated and depend on many factors. There are some general principles that apply to most debt collection protection laws:

1. Debt collection agencies are not allowed to harass debtors. Activities that constitute harassment vary from place to place but would typically include calling too frequently or at unusual hours.

2. Revealing the debtors situation to other people (employers etc.). Debt collection agencies are supposed to take all reasonable steps to ensure that their actions do not alert other people to the debtors situation. This would include speaking to your boss at work or someone that lives in your home.

3. Using abusive language. Deb collection agents have to deal with you in a professional manner. Petty insults and bad language are not tolerated.

4. Misrepresenting their powers or actions that they are going to take. Unfortunately debt collection agents will frequently imply that they are going to take money direct from your employer if you don’t agree to pay them. This is completely untrue and illegal since they cannot do this without further legal action.

5. A debt collection agent that visits your home has no right to speak to you and no right to enter your home. In the UK it is only bailiffs that can sometimes do this, and even they have no right to force entry into your home in most cases.

6. I’m not sure whether this last point is against the rules (this site is only based on my personal experience) but beware of debt collection agents that try to get you to stop/reduce priority debt payments (mortgage, rent, food, tax, fines) to be able to pay them some money. Some will try because they don’t really care what trouble you get into.

If you feel that any debt collection agent that you speak to has broken the rules then your first action (other than getting some professional debt advice) should be to write a letter to the collection agency involved stating what they have done and that you know that it is illegal. This will stop the activity in most cases, but if it does not then you really do need to get some qualified free debt advice.

]]> http://www.alloza.net/debt-collection-protection.cfm/feed 0 http://www.alloza.net/debt-settlements-results.cfm http://www.alloza.net/debt-settlements-results.cfm#comments Sat, 13 Feb 2010 11:06:56 +0000 admin http://www.crawbot.co.cc/?p=1211

Many consumers receive results from debt settlement companies. According to The Association of Settlement Companies (TASC), consumers seeking to manage their debt have higher success rates when using credible debt settlement companies rather than credit counseling services. TASC, the non-profit watchdog organization for self-regulating the debt-settlement industry, gathered the information from various sources, including the Consumer Federation of America and National Consumer Law Center, the Executive Office for the U.S. Trustees and testimony by credit counseling companies.

 

With both shorter program durations and lower budgeted monthly payments, debt settlement programs frequently see higher success rates and fewer dropout rates. Other differences between credit counseling and debt settlement are:

1. Debt settlement companies do not receive any fees, contributions or other forms of compensation from any entities other than the debtor client. Meanwhile, credit counseling companies get money each month from their customers, plus they receive “contributions” from credit card companies and “fair shares” from banks.

2. Debt settlement programs are typically 36 months or fewer. Credit counseling programs are usually 60 months or more.

3. For consumers that complete programs, the total cost of a debt settlement program is usually about half the cost of a debt management program offered by a credit counseling company.

4. Debt settlement programs achieve individualized and customized results depending on a consumer’s circumstances and needs. Credit counseling payment plans are fixed payments over a length of time. 

You need an honest means of dealing with your debt problems efficiently. Debt settlement involves a personalized budgeting plan that will effectively enable a debt settlement negotiator to reach a compromise with creditors that actually settles the debt for less than the full amount. At Credit Answers we are here to help you. At any time you can pick up the phone and call 800-297-6417 and speak with your personalized debt settlement coach to answer your questions

]]> http://www.alloza.net/debt-settlements-results.cfm/feed 0 http://www.alloza.net/your-bankruptcy-attorney-guiding-you-through-the-process.cfm http://www.alloza.net/your-bankruptcy-attorney-guiding-you-through-the-process.cfm#comments Mon, 11 Jan 2010 21:25:58 +0000 admin http://www.crawbot.co.cc/?p=1218

If you are in deep financial trouble and are thinking about filing for bankruptcy, then you should hire a knowledgeable bankruptcy attorney that can guide you through the entire process.

Here is what your bankruptcy attorney will do once you have contacted them.

Your Attorney Will Ask For All the Relevant Papers

You will first need to go for mandatory credit counseling six months prior to filing for bankruptcy.

The proof of that counseling, along with other financial papers (such as a list of all your debts, expenses, income and assets), will have to be provided to your bankruptcy attorney before they can proceed.

They will study your documentation and then advise you on the best way out of your financial predicament.

Your Bankruptcy Attorney Will Then Decide On the Relevant Chapter

Based on your financial records, your bankruptcy attorney will come to a conclusion as to which chapter is more suitable for your situation.

If you have exhausted your sources of income, then you might be advised to file for bankruptcy under chapter 7. If you have a reduced source of income and would also like to save most of your assets, then your attorney might advise you to file under chapter 13.

If you own a business and you want to continue running it, then you could file for bankruptcy under chapter 11.

Your Attorney Can Help You with the ‘Means Test’

If you are filing for chapter 7 bankruptcy, then your bankruptcy attorney can help you calculate your gross and net income for the previous six months. That income will be compared to the average median income of a similar-sized family in your town.

If you do qualify to file under Chapter 7 bankruptcy, then your attorney will coordinate with a trustee appointed by the bankruptcy court in disposing your assets in order to pay off your creditors.

If your income exceeds “means test” guidelines for qualifying filing a Chapter 7, then your attorney will now have to shift their attention to filing for bankruptcy under chapter 13, which requires a new repayment schedule.

This schedule will help you clear your old debts over a period of 3 to 5 years.

Your Bankruptcy Attorney Can Draw Up a New Schedule for the Court

If you need to file for bankruptcy under chapter 13, then your attorney can draw up a new repayment schedule and get it approved by the court after arranging a meeting with your creditors.

Once the repayment plan is approved, then you will need to start your payments according to that schedule.

Your Attorney Can Help You Avoid the Pitfalls

Filing for bankruptcy can be a complicated affair – and you will probably be too worried to be thinking straight.

An efficient bankruptcy attorney can calm you down and point out the pitfalls and advantages of filing for bankruptcy under different chapters after analyzing your case.

Hiring an attorney can save you a lot of time and effort. They will do the legwork involved to close your case at the earliest possible time.

An experienced, knowledgeable bankruptcy attorney is a vital asset to have on your side when you are facing financial difficulties and thinking of filing for bankruptcy.

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