Many debtors are intimidated by debt collectors who often cast themselves as these all powerful entities who can wreck havoc on a debtor’s life.  But the truth of the matter is that debt collectors aren’t as powerful as they seem, it’s just that many debtors’ lack of knowledge about their rights and the limitations of debt collectors make them vulnerable to debt collector tall tales.  Here are a couple myths and …

Category: Debt Collectors , Economy , Managing Your Finances

Tags: Debt Collectors facts Myths threatening

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The Federal Trade Commission (FTC) successfully sued three debt collection companies who scammed consumers into paying money they did not really owe.   A total of $1.6 million was recovered from the debt collection scammers and will be distributed to 24,916 consumers.

In 2003, the FTC sued three companies, operating under the name National Check Control, charging them with harassing and abusing consumers, falsely threaten­ing criminal prosecution, …

Category: Breaking News , Debt Collectors , Economy

Tags: consumers debt collection

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… don’t plan on falling behind on their bills.  Then… to add insult to the financial injury, a debt collector with an attitude calls you.  Their job is plain and simple…to get you to pay.  Some collector’s though have the belief that their job is to get you to pay, regardless of what it takes.  You might owe the debt.  You probably feel guilty about what you haven’t been able to pay, because that’s how your parents raised you:  pay what you owe.  Even if you have guilty …

Category: Bankruptcy , Debt Collectors , Debt and Tax Relief

Tags: Consumer protection Debt Collectors Federal Trade Commission Know Your Rights

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There are several requirements that a debt must meet before it becomes governed by the Fair Debt Collection Practices Act:

The debt must be a consumer debt that was incurred for personal, household or family reasons. For example: Medical debt incurred because of a spouse’s illness would meet this criterion; however, medical debt incurred because of an employee’s accident would not meet this criteria. …

Category: Debt Collectors

Tags: Debt Fair Debt Collection Practices Act Know Your Rights Threatening Collector

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According to an article in the Star-Telegram, American Corrective Counseling Services, a debt collection company has agreed to a $2.55 million judgment to settle a lawsuit brought by thousands of debtors who claimed they were wrongly led to believe they had to pay costly fees to avoid criminal charges for bouncing checks.

The article said:

“The company sent out letters as recently as last winter purporting to be from various Pennsylvania district attorneys’ offices to …

Category: Debt Collectors , Lawsuits

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… not only facing aggressive collection action by creditors they are also being scammed by phony debt collectors.  One such scam includes a payday loan scheme that requires the debtor to wire money to the scammer or face imprisonment. Here’s how it works and what you can do to avoid falling for the ploy:

The debtor will receive a phone call from a debt collector who has a very official sounding title.  The debt collector may refer to him/herself as an Officer or even Deputy to make …

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According to an article in the Star-Telegram, a widow is claiming that debt collectors hounded her husband to death with as many as nine harassing and illegal calls per day, causing stress that contributed to his fatal heart attack. She’s suing Green Tree Servicing for damages, claiming that their illegal collection practices that led to her husband’s heart failure on Dec. 4, 2005.

The article said:

“Her 57-year-old husband, Stanley, was already in poor …

Comment by Jacob Decker: … like this against debt collectors during these tough …

Tags: Debt Collectors Health Mortgage

… an article in the Star-Telegram, the Better Business Bureau is warning consumers away from using debt settlement companies, which often worsen their financial condition and fail to deliver on their promises.

The article said:

“The Better Business Bureau at Fort Worth has just completed a report on debt settlement businesses and warns consumers that seeking their help is rarely a good idea. Debt settlement usually adds to the consumer’s debt load and rarely leads to a significant …

Category: Bankruptcy , Debt Consolidation , Economy

Tags: Bankruptcy Better Business Bureau Debt settlement Financial services

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… is to obtain a discharge of debts, which means the debtor is no longer personally liable for that debt.

Q:  What does a “discharge of debt” mean, exactly?

A:  The goal of bankruptcy proceedings is to obtain a discharge of debts, which means the debtor is no longer personally liable for that debt.

Q:  So what does “personal liability” mean, then?

A:  Having personal liability for a debt means that creditors who obtain a judgment against you can use legal means, …

Category: Bankruptcy Q&A , Debt and Tax Relief

Tags: Bankruptcy Questions Discharge of Debt

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The first step to conquering debt that has gotten out of control is to get honest with yourself.  Take the time to find out how much you owe, how much you earn and what the real gap is in between.  One of the biggest shockers debtors experience when they file bankruptcy is just how indebted they really are compared to what they had imagined.  Don’t engage in self-deception, get to the root of the truth now.

 Create A …

Category: Bankruptcy , Bankruptcy Q&A , Debt and Tax Relief , Economy , Filing Bankruptcy

Tags: Bankruptcy Attorney budget Debt

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In the bankruptcy case of Mammola, Robert J.; In re , 20 the bankruptcy debtor failed to list a creditor who later filed a lawsuit against the debtor.  After attempting to reopen the bankruptcy case so that the omitted creditor could be included in the discharge, the bankruptcy court denied the debtor’s request.

The details of the bankruptcy case:

The debtor filed for Chapter 11 …

Category: After Bankruptcy , Bankruptcy , Chapter 7 Bankruptcy , Debt Collectors , bankruptcy law

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There be sharks out there…and they’re called debt collectors!  As the economy gets tougher and more people default on their credit cards, mortgage loans and other debt obligations, more debt collectors are crossing the line and engaging in illegal debt collection practices. If you are considering bankruptcy and have faced illegal collection actions by creditors, you may be able to file a lawsuit against the creditor during bankruptcy.  …

Category: Bankruptcy , Credit Counseling , Debt Collectors

Tags: Credit card Debt Law Personal Finance