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Being deeply in debt is really difficult, not just for you but also for your family. When debt costs or notices pile up in front of you, you get confused and sometimes stressed; add to that a debt collector who constantly reminds you of your debt to them. What you are experiencing is understandable, yet as a debtor, you still owe money to your creditors. Despite the fact that you owe creditors money, they are not permitted to harass or humiliate you. It is critical to remember that debt collectors must adhere to debt collection guidelines and regulations. Competent Oregon bankruptcy attorneys at Northwest Debt Relief Law Firm get the low-down on what debt collectors are and answer the question, “What can debt collectors do to you?”
Who are debt collectors?
The incapacity of the debtor to pay the outstanding obligation will be reported to the credit bureau. This will have a significant impact on your credit history, and your debt will eventually be turned over to a debt collector or collection agency.
A debt collector (also known as a collection agency) is a commercial entity whose primary duty is to reclaim or recover money owed by the debtor to the creditor. Companies that use debt collectors often pay a flat charge or a percentage of the entire amount collected. In some cases, debt collectors can acquire debts for a portion of their face value and then seek to recover the entire amount of the debt.
What do I need to learn about debt collection?
The debt collection process is strenuous work for the collector and the debtor. As a debtor, it is critical that you understand the standard debt collection process. This will give you an idea of how debt collection works and what to expect.
Typically, creditors will deploy their internal collectors for the first six months. Most creditors will use their own collectors to recover overdue debts (e.g., car loans or medical bills). This is commonly referred to as a first-party agency.
It is critical that you remember that this is the best time to settle your debts. Sometimes, you can plead your case to your creditors, who, in some circumstances, will allow or grant you an extension. However, if they use the services of a debt collector, such as when the debt was sold to the collection agency, it is difficult to speak directly to your creditor.
Second, creditors will turn to a collection agency (also refers to a third-party agency). If you have not still paid your debt, your creditor will be forced to seek the assistance of a collection agency. This is advantageous for them because obtaining such assistance is inexpensive, and these agencies have sufficient resources. However, the debt is still owned by the creditor at this stage, and if the collection agency is successful in collecting the debt from you, they will get a percentage of the total amount of debt recovered or a fee.
Finally, your creditor will sell your debt to a debt collector. This is the stage at which your creditor sells your debt to a collection agency for a nominal fee. It is vital to highlight that, in most situations, debtors may no longer plead with the collector, as opposed to the original creditor, with whom they have a connection.
As much as possible, as a debtor, you should settle the delinquent debt within the first six months. This allows you the opportunity to ask your creditor for extra time to settle your debt or waive some fees.
Can I be sued for an old debt?
When we talk about the statute of limitations, we’re referring to the time restriction within which a person or organization can bring a lawsuit. If you file a case beyond the prescribed time limit, your lawsuit will be dismissed. This is also true for debt collection. A creditor who desires to bring a lawsuit against you must do so within the time limit specified; otherwise, their lawsuit will be dismissed.
The statute of limitations may differ based on the state in which you live and the sort of debt you owe to your creditor. If you live in Oregon, your creditor must file a lawsuit against you within 6 years for mortgage, medical or credit card debt, vehicle loans, and other contract obligations.
This, however, does not free you of any debt. They can continue to pursue their collection efforts, but they will be unable to take legal action against you.
What can a debt collector do and cannot do to me?
Even though you owe them money, that doesn’t give them the right to harass or humiliate you in any manner. Debt is neither a crime nor a sin.
There are numerous debt collectors that threaten or compel people into paying their debts, which is wrong on many levels. You should be aware that debt collectors must adhere to strict guidelines outlined in the Fair Debt Collection Practices Act (FDCPA).
Collection agencies or lawyers who will try to retrieve the debt from you must adhere to the Fair Debt Collection Practices Act (FDCP). Oregon state law prevents the collecting party from sharing any information about your debt to parties that are not engaged in the debt problem in any manner.
Furthermore, debt collectors are not permitted to engage in the following tactics or practices:
They can not harass, corce, or bully you into paying your debts.
Frustration hangs over debt collectors that fail to collect your debt on a regular basis. They might occasionally turn to harassing you, such as contacting you several times in a short amount of time or threatening to expose you to the public. Their grievances are valid, but this does not give them the liberty to inflict harm to the debtors.
Fortunately, the Fair Debt Collection Practices Act protects borrowers from certain sorts of harassment that may occur when collecting debts. The FDCPA prohibits collection agencies from coercing you into settling your debts or using abusive or profane language against you.
One of the numerous benefits of the FDCPA is that debt collectors are only permitted to contact you between the hours of 8:00 a.m. and 9:00 p.m. It is against the law for them to contact you outside of that time frame. Such an act may be considered harassment, and you should report it to the appropriate authorities.
They can not shame you publicly.
Debt collectors are not allowed to publicly humiliate you just because you owe money or are unable to pay it. Your dignity as a person must be preserved. There are cases where debt collectors will humiliate you in order to get you to pay your debts, such as by publishing about your debt on social media accounts and you not paying them on time. If this occurs to you, attempt to document it as proof and pursue a lawsuit against them.
They can not disclose any debt-related information to anyone.
The FDCPA forbids debt collectors from disclosing any information about your debt to anybody else. This information is only available to you, your spouse, your parents (if you are a minor), or any people engaged in your debt situation.
There is, however, an exception to this rule. Debt collectors may approach or contact others merely to get basic personal information about you, such as where you reside, your home phone number, and the location of your job. Furthermore, your creditors might share information with debt collectors that can help them recover the sum you owe.
Wage garnishment is not allowed as an alternative to settle your debt unless it is ordered by the court.
A debt collector is dishonest if they hint or inform you that they have no choice but to garnish your earnings to settle your debt without a court order. Wage garnishment requires a court order directing the withholding of your salary and their use as payment.
Furthermore, garnishment of federal benefits is typically prohibited unless used to pay for unpaid taxes, alimony, child support, or student loans. Government emergency disaster aid, social security benefits, veterans benefits, and other federal benefits are examples of those that are not subject to garnishment.
Protect yourself by contacting our lawyers!
One of the worst things that may happen to you is being harassed, humiliated, or publically disgraced by a debt collector. Being in debt to someone and being delinquent does not give your debt collectors the authority to do terrible things to you.
Northwest Debt Relief Law Firm is not here to judge, but rather to assist you. We are completely prepared to handle debt-related matters. Our strong desire to offer our clients with the debt relief they need drives us to provide you our very best. Furthermore, our prices are suited to the sort of case you have; we may also provide you with a flexible and feasible repayment plan. Talk to our helpful debt relief lawyers for legal advice on how to get a fresh start.
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The post When Your Debt Collector Is Stepping Over the Line appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief Law Firm.
“Diane shows compassion and understanding to her clients.” M.W.
Diane provides educated and honest information throughout the entire process. She shows compassion and understanding to her clients. She was not my first attorney but took my case on in very short order. She cleaned up all of the mistakes and oversights the previous attorney made.
I am able to sleep now knowing I will not lose my house because paperwork wasn’t filed. I would recommend Diane to anyone.
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The post Diane shows compassion and understanding to her clients. appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.
As many readers are aware, individuals whose income exceeds the median income in New York State are required to do "means testing" to determine if they qualify for chapter 7 personal bankruptcy.In New York State the median income for a family of 1, 2 or 3 is listed below and if a Debtor’s income exceeds the state’s median income they must do means testing. Household Size Monthly Income Annual Income1 $5,058.00 $60,696.002 $6,429.92 $77,159.003 $7,709.00 $92,508.00 If an individual wants to file for chapter 7 bankruptcy and they do not pass the means test, then there is a "presumption of abuse" and they are not allowed to file for chapter 7 bankruptcy.The means test is an 8-page test and it is the most complicated test or calculation in the law!Shenwick & Associates is often referred complex bankruptcy cases and we do means testing on a regular basis. We are often asked whether non-dischargeable student loan payments are an allowed deduction for means-testing. Interestingly, the test itself does not allow a deduct for non dischargeable student loan payments. However there is a deduction for " special circumstances" and many bankruptcy attorneys believe that non-deductible student loan payments should be a special circumstance deduction. There is a case on point from the Western District of New York (it is not a case from the Southern or Eastern Districts), but it holds that non-deductible student loan debt can be deducted when doing means testing and the logic of that case may be persuasive to judges in this District. The name of that case is in re Howell 477 B.R. 314 (2012). In the Howell case, the United States Trustee has moved to dismiss this Chapter 7 case on grounds that the granting of a bankruptcy discharge would constitute an abuse. The central issue in the case was whether the obligation to pay a non-dischargeable student loan can serve as a special circumstance that will overcome a statutory presumption of abuse under 11 U.S.C. § 707(b)(2). Section 707(b)(1) of the Bankruptcy Code establishes the general rule, that the Court may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts if the filing would be an abuse. In the Howell case, the debtor had student loan payments of $658.00 per month and if this deduction were treated as an allowable expense, their current monthly income would fall to a level that avoids a presumption of abuse. Section 707(b)(2)(B)(i) of the Bankruptcy Code states that in any proceeding to dismiss a case for abuse, "the presumption of abuse may only be rebutted by demonstrating special circumstances.The Court found that there was no evidence that the Debtors lead an extravagant lifestyle. The Debtors had three outstanding student loans. In sworn affidavits, the Debtors stated that they were not eligible for any further extensions and that as presently constituted, the loans require monthly payments through dates that range between 16 and 24 years after the filing of their bankruptcy petition. The Judge held that the totality of evidence supports the absence of an abusive filing and that Section 707(b)(2)(B)(i) provides that special circumstances" may rebut the presumption of abuse. The Court stated that the non-dischargeable character of the debtors' student loans will necessitate expenses for which the debtors have no reasonable alternative. The Judge further found that the magnitude of the student loans will further compel substantial payments over an extended period of time, without hope for any deferral.The Judge held that based on the debtor’s student loans and non extravagant lifestyle the bankruptcy filing was non-abusive and the Debtor’s were granted their chapter 7 discharge.We should note that the debtors were not attempting to discharge their student loans in their chapter 7 bankruptcy filing. Individuals that have questions about Personal Bankruptcy or the Means Test should contact Jim Shenwick 212 541 6224 or [email protected]
“Diane and Jay were wonderful to work with.” P.
Diane and Jay were wonderful to work with. They helped us navigate the bankruptcy process. They were informative and answered all our questions. We highly recommend them! P. 
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The post Diane and Jay were wonderful to work with. appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.
“Being of Service to Others certainly overshadowed any money motivation…in the end her expert consultation did not cost us any money. ” G.G.
Diane was great at coming to our rescue during very stressful times…
Dianne and her team were always in good communication and they always were quick with responses. This was important in terms of the stress pushing for timely legal decisions.
She was extremely thorough with her questions prior to our telephone meeting. She was very kind and patient defining and explaining vital points to us. It never felt rushed or pressured by time limits.
Her qualifications as an expert are at the highest possible level of competence as an Attorney, Law Professor, Arbitrator and as someone sincerely interested in being of service to others. Being of Service to Others certainly overshadowed any money motivation…in the end her expert consultation did not cost us any money. Her great advice referring us to good credit counselors solved our problem.
I would give her 10 gold stars and I would highly recommend her to anyone worried about potential lawsuits and the threats of potentially losing one’s home.
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The post Being of Service to Others certainly overshadowed any money motivation…in the end her expert consultation did not cost us any money. appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.
“Diane has been a G_d send to me. My previous attorney was disbarred and I had a hearing before the Bankruptcy (Judge not the Trustee). Diane jumped in. Attended my court date and has taken care of me from there. . ” M.W.
Diane has been a G_d send to me. My previous attorney was disbarred and I had a hearing before the Bankruptcy (Judge not the Trustee). Diane jumped in. Attended my court date and has taken care of me from there.
Further, when I found out my previous attorney was disbarred, the court had me call the attorney helpline. I told everyone I spoke to that I had hired Diane. They all said I was in GREAT hands. Months later, I know I am in good hands!
Going through this is so difficult. Hiring an awful attorney only makes it worse. M.W.
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The post My Attorney Was Disbarred, Diane Jumped in to Help. appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.
Does the income of a live-in girlfriend of five years count towards household income? I read that question in an online chat discussion recently.
Here is the answer provided by a bankruptcy attorney: “No, her income will not be used to determine your household income unless you are attempting a modification and want to use her income as a contributor.”
That answer is completely wrong. In fact, that answer could lead this person to commit perjury on his bankruptcy schedules and may result in a denial of his bankruptcy discharge.
Important Questions:
There are important questions that must be answered to determine if the girlfriend’s income needs to be listed.
- Do you share bank accounts with the girlfriend?
- Do you own property together, such as a home or vehicle?
- Are there children from this relationship?
- Are you a cosigner of debts with the girlfriend?
The bankruptcy schedules request that you report the size of the household and all household income. That answer is not dependent on whether or not you are married.
Does the girlfriend’s income make a difference?
Does it make a difference if you list the girlfriend’s income? If not, list it. The best approach is to list all household income.
If it does make a difference (for example, if listing her income makes you ineligible for Chapter 7), then you need to carefully examine the details of the relationship.
The concept behind Household Income:
There is a reason the bankruptcy schedules ask you to report all household income instead of just income of a married couple. Obviously, the bankruptcy laws want full disclosure of all regular income of the household. And if you fail to report all regular income of the household you could be found guilty of committing perjury on the bankruptcy schedules and your discharge my be denied.
But what is household income? If you have a roommate and share an apartment, do you have to list the roommate’s income? Do you have to list the income of your children or your parents living in the home?
The answer is it depends. You have to carefully examine the nature and extent of the relationship.
I would list the income of a live-in girlfriend of five years if you share bank accounts, children, property and debts. I would not list the income of a girlfriend who is just spending the weekend together.
The duration of the relationship matters. The nature of the relationship (romantic versus non-romantic) matters. Sharing bank accounts and property and cosigning debts matters. Each case is unique.
Shared expenses:
Assuming you do not share bank accounts or children or property together (which is an altogether different article about lack of commitment!), you probably do share expenses. So, if you only pay half of the rent and the girlfriend pays the other half, make sure you do not take credit for paying all the rent on the monthly expense schedule. In other words, only list your share of the expenses that you actually pay.
Common Fraud Issue:
When reviewing bankruptcy cases I notice that the failure to disclose all household income is quite common and easily detected. I commonly see cases filed that list “Contribution from Boyfriend/Girlfriend” and then I notice several children listed as living in the home. When you live with your boyfriend/girlfriend and have children of the relationship living in the home, it is simply wrong to list contribution income. Rather, the entire gross income should be listed on Schedule I of the bankruptcy Schedules and six months of gross income on the Means Test.
It simply boggles the mind to understand why the US Trustee does not pick up on this common failure to report household income more frequently. It is too easy to avoid the requirement of reporting household income just because parents with minor children living together are not married, and attorneys who prepare schedules in this manner put their clients at risk for serious charges of perjury and possible denial of discharge.
Image courtesy of Flickr and davidmesaaz
What Does It Mean to File Bankruptcy Chapter 13?
Because of unemployment, growing medical expenses, credit card debt, marital issues, or other reasons, many people are struggling financially. Regardless of the filing chapter, a bankruptcy filing will affect your credit score. It will stay on your credit report for several years and affect your ability to get credit after bankruptcy.
Despite these things, however, filing bankruptcy can make your life less stressful through the automatic stay. A bankruptcy filing can help you pursue debt settlement, as long as you make the right steps and take everything seriously.
If you are currently encountering grave financial difficulties, it is best to seek legal advice early on. Consider all of your options, including negotiating directly with the debt collector or creditor or filing for bankruptcy. A trusted Portland OR bankruptcy attorney can explain the pros and cons of your legal options and how you can pay off your debts.
Bankruptcies can be quite confusing. This article aims to discuss the different types of bankruptcies, specifically Chapter 13. It is composed of the following sections:
- Choosing from the Different Bankruptcy Proceedings
- How a Petition for Bankruptcy Can Help
- Overview of the Chapter 7 Bankruptcy Procedure
- Overview of a Chapter 13 Bankruptcy Case
- The Need for Legal Services of a Reliable Local Attorney
- Contact our Oregon Bankruptcy Law Office
Choosing from the Different Bankruptcy Proceedings
One must remember that the different types of bankruptcy are suited for different filers, depending on their obligations, resources, and short- and long-term goals. The choice is crucial, as there are mistakes that could lead to grave consequences.
Generally, a Chapter 7 liquidation is ideal for those dealing with credit card bills, medical bills, and personal loans. A Chapter 13 reorganization, meanwhile, is usually appropriate for those with assets that they would want to keep.
If you require debt relief and intend to file bankruptcy Chapter 7, a trustee will liquidate your non-exempt assets to pay off priority lenders. However, you must first pass the bankruptcy means test to be qualified to file bankruptcy under this chapter. Under relevant bankruptcy laws, your monthly income and living expenses will determine your eligibility as a filer.
Meanwhile, in a Chapter 13 bankruptcy, you will have the chance to restructure your overwhelming debts and bring current payments for secured debts (those with collateral). You can essentially avoid foreclosure and repossession by proposing a payment plan to the bankruptcy court. Here, the debt repayment plan will run for three or five years.
How a Petition for Bankruptcy Can Help
As mentioned, declaring bankruptcy can gravely affect one’s credit report. Getting new credit can be pretty tricky, both during and after the entire bankruptcy process. Despite this, however, one would be able to notice a slow but steady recovery in their credit score several months after filing a bankruptcy petition.
Depending on the specific circumstance of the bankrupt individual, filing for bankruptcy can help stop foreclosure, stop repossession, and stop wage garnishment. Dealing with debt can be very difficult, and filing for bankruptcy may be the best way for you to rebuild your financial future. It may not be the easiest route, but it may be your best option.
The automatic stay
Most bankrupt filers seek to benefit from the bankruptcy protection that comes with their case. An automatic stay ensures that creditors will not sue debtors for failure to pay back what they owe. It can also stop creditor harassment and wage garnishment, which is very useful for those struggling with debt. An automatic stay generally takes effect once the relevant bankruptcy court has approved the petition.
Discharged debts
Under the bankruptcy code, an unsecured debt generally pertains to debt without any collateral. Credit card bills, medical bills, personal debts, and other unsecured debts may be forgiven. This is particularly after the petition is finalized or after the payment plan is completed.
It must be noted, however, that certain types of debt do not involve collateral but are considered non-dischargeable. Common examples include particular tax debt, criminal fines and penalties, child support, alimony, and student loan debt.
While not all of your debt problems will be eliminated when you file bankruptcy, it can help you eliminate certain forms of debt and free up a sufficient budget for you to pay back non-dischargeable debts.
In many cases, the best option to deal with overwhelming unsecured and secured debts is to file for bankruptcy. Experienced and hands-on Portland, Oregon bankruptcy lawyers can explain these advantages of a bankruptcy declaration in more detail.
Overview of the Chapter 7 Bankruptcy Procedure
If you are planning to file bankruptcy under Chapter 7, you must first meet the following qualifications:
- Not having a recently filed Chapter 7 or Chapter 13 petition in bankruptcy
- Not having filed a previous bankruptcy petition that has been denied due to non-compliance with a bankruptcy court order or failure to appear in court
- Passing the bankruptcy means test, which takes into account monthly income and living expenses, among other things
If you are facing financial difficulties and mounting debt, seek legal assistance from a seasoned bankruptcy attorney who can help you with the following steps:
- A certified nonprofit credit counseling provider will facilitate required counseling sessions.
- The assigned trustee in bankruptcy filings will take care of liquidating assets and distributing funds accordingly unless it is a ‘no asset’ case.
- A filer must complete a financial education course from a certified credit counseling organization before obtaining a bankruptcy discharge.
- The bankruptcy court will give out a court order for discharged debts around three to six months after filing bankruptcy. Here, all qualifying debts are forgiven or wiped out.
Overview of a Chapter 13 Bankruptcy Case
A bankruptcy case will involve numerous paperwork and supporting documents. These would include court forms and documentation that must be complete and comply with relevant bankruptcy rules. Also known as a wage earner bankruptcy, Chapter 13 is generally helpful if you are a high-income earner who wishes to reorganize your debts.
If you are planning to declare bankruptcy under Chapter 13, you would generally go through the following steps:
- Consult with a credit counselor discuss finances and debt reorganization plans with a local attorney, who shall help you document your eligibility
- Work with your bankruptcy trustee, to be allowed by the court to repay secured and unsecured debts while retaining your assets
- Formally submit your bankruptcy petition to be able to benefit from the automatic stay
- Submit your proposed payment plan 14 days after filing the petition and work on making payments within 30 days from filing, even before it has been approved by the bankruptcy court
- Go through the confirmation hearing and complete the required debtor education course
In this type of bankruptcy, you can keep all of your properties and assets, but you must pay back your creditors for non-exempt assets through a debt repayment plan. This will run for three to five years. As such, bankrupt individuals who are filing Chapter 13 bankruptcy cases must have a steady income to repay their debts.
The Need for Legal Services of a Reliable Local Attorney
Filing bankruptcy is a legal option for people to get out of debt and gain financial freedom once again. It enabled a lot of individuals to have a fresh start in life, letting you have a clean slate in terms of your finances. However, it is essential to seek bankruptcy information and legal representation from trusted professionals.
If you are planning to file bankruptcy, or are wondering if it is the best course of action to take, you need a lawyer who can help you solve your financial problems. Bankruptcy attorneys will help document your eligibility to a bankruptcy trustee, who will then administer proceedings brought to court. Bankruptcy attorneys with extensive experience in handling bankruptcy cases can provide quality legal advice on how you can get back on track. Discuss your finances and debt reorganization plans, if any.
Contact our Portland Bankruptcy Law Office
If your income and other financial circumstances make it almost impossible for you to pay back debts, filing for bankruptcy may be your only choice. Here, a competent Portland bankruptcy law firm can help. Consult with a dedicated Oregon bankruptcy lawyer at Northwest Debt Relief Law Firm today.
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After Paying for Ten Years, Nina Got Public Service Student Loan Debt Forgiveness There’s very little bankruptcy law can do to help people with student loans. But as a bankruptcy lawyer, I can at least give people good advice. Since 2017, I started steering people who seemed eligible to Public Service Student Loan Debt […]
After Paying for Ten Years, Nina Got Public Service Student Loan Debt Forgiveness There’s very little bankruptcy law can do to help people with student loans. But as a bankruptcy lawyer, I can at least give people good advice. Since 2017, I started steering people who seemed eligible to Public Service Student Loan Debt […]
The post After Paying for Ten Years, Nina Got Public Service Student Loan Debt Forgiveness by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.