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For most people, bankruptcy works. For most people “debt settlement” doesn’t work. One reason.  The debt settlement people charge enormous fees–FDR and NDR charge at least $6,000 to “settle” $40,000 in credit cards (and you still have to pay the settlement). Plus, they usually don’t work . See this email I got this email today […]
The post For most people bankruptcy works. For most people, debt settlement doesn’t. by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

Everyone experiences some sort of financial struggle. Good news: this is not the end-all-be-all! Some of the most successful people ended up filing for bankruptcy before they were rich and famous.
Some of your favorite celebrities are on this list! Click the link below to see all 9 famous people who filed for bankruptcy before they became rich!
P.S.: There is a former U.S president and a financial advisor on this list!
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The post 9 Famous People Who Went Bankrupt Before They Were Rich appeared first on Allmand Law Firm, PLLC.

CFPB Rule Clarifies Tenants Can Hold Debt Collectors Accountable for Illegal Evictions

Bureau Issues Interim Final Rule on Fair Debt Collection Practices Act (reprint April 19, 2021)

The Consumer Financial Protection Bureau (CFPB) today issued an interim final rule in support of the Centers for Disease Control and Prevention (CDC)’s eviction moratorium. The CFPB’s rule requires debt collectors to provide written notice to tenants of their rights under the eviction moratorium and prohibits debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium. The CDC has established the eviction moratorium to protect the public health and reduce the spread of the virus. Debt collectors who evict tenants who may have rights under the moratorium without providing notice of the moratorium or who misrepresent tenants’ rights under the moratorium can be prosecuted by federal agencies and state attorneys general for violations of the Fair Debt Collection Practices Act (FDCPA) and are also subject to private lawsuits by tenants.
“With COVID-19 killing hundreds of Americans every day, kicking families out into the street during this pandemic may literally be a death sentence,” said CFPB Acting Director Dave Uejio. “No one should be evicted from their home without understanding their rights, and we will hold accountable those debt collectors who move forward with illegal evictions. We encourage debt collectors to work with tenants and landlords to find solutions that work for everyone.”
Nearly 9 million households are behind on their rental payments. Tens of thousands of renters are being evicted every week, often without being told of their rights under the CDC moratorium. As the CDC has found, tenants who are evicted may end up homeless or in crowded or shared living settings, increasing their vulnerability to COVID-19 and the risk of the disease spreading throughout communities. Such evictions can have long-term health, financial, and social consequences for families and children.
CDC Moratorium
A temporary eviction moratorium ordered by the CDC has been extended through June 30, 2021. The CDC order generally prohibits landlords from evicting tenants for non-payment of rent, if the tenant submits a written declaration that they are unable to afford full rental payments and would likely become homeless or have to move into a shared living setting. This prohibition applies to an agent or attorney acting as a debt collector on behalf of a landlord or owner of the residential property.
Tens of thousands of tenants and families are evicted every week, many of whom would have had a right to stay in their homes if they had given their landlord a completed CDC eviction moratorium declaration. According to a recent Government Accountability Office report, tenants facing eviction may be unaware of the moratorium or may not understand the steps they must take to act on its protections. Declarations can be submitted in languages other than English, and alternative forms are available online.
New Tenant Protections
Under the FDCPA interim final rule, debt collectors, including attorneys, seeking to evict tenants for non-payment of rent must provide tenants who may have rights under the CDC order with clear and conspicuous written notice of those rights. The notice must be provided on the same date as the eviction notice, or, if no eviction notice is required by law, on the date that the eviction action is filed.
Debt collectors must provide the notice in writing. Phone calls or electronic notice such as text messages or emails are not sufficient. The CFPB is providing debt collectors with sample language to satisfy the rule’s disclosure requirements.
Failure to provide the required notice to tenants is a violation of the FDCPA. The FDCPA provides a private right of action against debt collectors, and violators can be held liable for actual damages, statutory damages, and attorney’s fees. Class actions may be brought under the FDCPA.
Some states and localities have adopted their own eviction moratoria. Debt collectors may also be required to provide notice of these moratoria. The CFPB’s rule does not preempt more protective state law.
There are additional resources available to help struggling renters impacted by COVID-19. Congress has created the Emergency Rental Assistance Program, administered by the U.S. Department of Treasury. This program provides assistance through state and local government to help tenants catch up on missed payments to avoid eviction. Applicants must apply through their local programs.
The National Low Income Housing Coalition has a directory of state and local rental assistance programs that renters can use to find their local programs. Landlords may also be eligible for funds under the Emergency Rental Assistance Program. The pandemic’s health and economic crises threaten families and communities across the nation. According to the CFPB’s analysis and other data:

• Millions of families are at risk of being evicted: In December 2020 about 18 percent of renter households were behind on their rent, which means nearly 9 million households at risk of eviction. In a typical year, there are about 900,000 evictions nationwide.  Over 27 percent of households with annual income under $25,000 were behind on their rent.
• Stopping evictions saves lives: Research shows that COVID-19 infection rates and mortality rates were higher when eviction moratoria were removed. The CFPB’s rule will help ensure that more renters are able to take advantage of their protections and avoid eviction.
• Evictions increase racial inequality: Black and Hispanic households are more than twice as likely to be tenants than white households, and they are also twice as likely to be behind on rental payments as of December 2020, according to a March CFPB report. Evictions impose substantial costs on individuals, families, and children, and having an eviction on your record can make it much harder to find a new rental property. Even an eviction filing can make it impossible for a family to locate new housing.

The CFPB has authority under the FDCPA to “prescribe rules with respect to the collection of debts by debt collectors.” Attorneys who engage in eviction proceedings on behalf of landlords or residential property owners to collect unpaid residential rent may be “debt collectors” as defined by the FDCPA. Given the urgency of the pandemic crisis, the Interim Final Rule will take effect on May 3, 2021. The CFPB believes this will give debt collectors time to come into full compliance. Debt collectors may begin complying with the rule before the compliance date.
Read the Interim Final Rule issued today.
Read a Fast Facts summary of the Interim Final Rule.
See the sample disclosure language for debt collectors.
Visit the CFPB’s housing portal to learn about renters’ rights and resources for struggling consumers.

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Only rely on government websites.  Contact the agency directly, do not respond to emails, phone calls or letters from someone saying they are with the government – THEY ARE SCAMS.  Sources including: www.FHA.gov, www.CFPB.gov, www.FTC.gov, to name a few. Once armed with good information, then use your common sense to decide what is best for you.
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• Avoid COVID Mortgage Relief Scams
• Debt Collectors Profit Because of COVID and Want More Money
• COVID-19 SCAMS – WARNINGS FROM FTC
• Resources for Consumers – COVID-19

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All businesses have ups and downs. Business owners know that there are inevitable cases of financial struggles and monthly income losses. These kinds of unforeseen situations may lead to the inability to pay financial obligations. Thus, filing for bankruptcy might be your only option to solve this problem. This will allow you to pay off all your debts and have a fresh start after bankruptcy. This is also a great opportunity to rebuild your credit and stay out of debt.
Among the different types of bankruptcy, Chapter 7 and Chapter 13 are considered the most common chapters. Since bankruptcy laws vary from state to state, a reliable Washington bankruptcy lawyer can help you understand these laws depending on the jurisdiction. Before you choose the chapter that you will file, it is important to know if you can meet the income requirements and if you can protect your assets using bankruptcy exemptions.
Your income will be measured using the means test. The results of this test will determine the most appropriate bankruptcy chapter that will suit your financial situation. In Chapter 7 bankruptcy, you will pass the means test if you meet the standard income requirements. If your income is lower than the state’s median income, then you are qualified to be granted a discharge from the Chapter 7 case. On the other hand, if your income exceeds the state’s median income, you may still be qualified to pass the means test after you deduct the allowable expenses.
In Chapter 13 bankruptcy, you may pay back some or the full amount of what you owe under a repayment plan if your income exceeds the limits of Chapter 7. The most important factor to consider in filing Chapter 13 is sufficient monthly income to wipe out your debts. The bankruptcy payment for Chapters 7 and 13 are calculated similarly. You are required to pay the non-exempt property value and the amount of your non-dischargeable debt. In case you want to make amendments to your choice of bankruptcy chapter, it is possible to change from Chapter 7 to Chapter 13 as long as you can reduce the length of the payment plan down to three years.
Before you file for bankruptcy, you need to know the rules on how you can protect your assets and properties from liquidation. Bankruptcy does not automatically imply that you will lose all the assets that you have acquired. According to the Washington bankruptcy exemption law, there are certain assets that you can protect from being liquidated depending on the bankruptcy chapter. However, some assets cannot be protected and these are classified under non-exempt property.
If you file Chapter 7, your bankruptcy trustee will be responsible for selling your non-exempt properties.  The proceeds will be allocated to your creditors based on the payment plan. On the contrary, filing Chapter 13 bankruptcy will allow you to keep and save your property; however, you need to pay back the non-exempt property value to your creditor under the repayment plan guidelines within three to five years.
In Washington, there are several commonly used bankruptcy exemptions. You have the option to file for a homestead exemption that allows you to protect $125,000 worth of equity. The exemption amount is reduced to $15,000 if there are other personal properties used as a residence. Moreover, a motor vehicle exemption worth $3,250 can be applicable for one vehicle that you own. If you will file it jointly with your spouse, you are allowed to exempt one vehicle each.
As part of the bankruptcy procedure, you need to take two financial courses from accredited credit counseling agencies. It is mandatory to take credit counseling sessions before bankruptcy filing and a debt education course after the bankruptcy filing.
You may start your bankruptcy filing by accomplishing the free and official online bankruptcy forms from the website of the United States Bankruptcy Court. You need to fill out the form with the complete details of your present financial status. You need to declare all your assets, liabilities, monthly income, living expenses, bank account information, credit card debt, loan debt, and property transactions. A competent Washington bankruptcy attorney can assist you in such filing. You need to ensure that all the details written on your paperwork are accurate before you file your case to the local court and pay the filing fees.
Bankruptcies will affect your credit report for seven to ten years, depending on the chapter that you have filed. Chapter 7 bankruptcy will stay on your report for ten years from the filing date, while Chapter 13 bankruptcy will remain for seven years. The effect of bankruptcy in your credit report will gradually fade with time as you think of ways on how to improve your credit score
Bankruptcy is a progressive process that will help you solve your financial problems one step at a time. It entails hard work and effort for you to succeed. For legal help in filing bankruptcy, do not hesitate to contact us at Northwest Debt Relief Law Firm and schedule a consultation with our experienced Washington bankruptcy lawyers. We will assist you throughout the whole bankruptcy process as you aim for debt settlement and financial freedom
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