Tag: FDCPA

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

How to Handle Creditor Harassment

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Dealing with creditors and debt collectors is one of the worst parts of dealing with debt. Even the thought of continuous debt collection calls can keep a person up at night. Debt collectors are oftentimes relentless when making these calls and can cross the line from a legal standpoint.  It is important to remember, that as a consumer you have rights when it comes to debt collection.

The Fair Debt Collection Practices Act (FDCPA) was created to protect consumers from harassment and threatening behavior from third-party creditors.

The FDCPA protects consumers from the following creditor behavior:

  • Contacting your employer regarding your debt or another party, except for contacting them to get information on your location;
  • Contacting you at unreasonable hours, either very early in the morning or late at night;
  • Calling you at work after being told to no longer contact you at your place of employment;
  • Calling excessively or repeatedly;
  • Using threatening or abusive language or behavior;
  • Threatening a lawsuit when they have no intent to pursue a lawsuit;
  • Threatening to publish or share your information because of your failure to pay a debt;
  • Any other abusive, obscene or threatening behavior.

The important first step to take when faced with a debt is to ask for confirmation on the amount owed. In fact, the debt collector is required to notify you that you have the right to request this validation within 30 days after receiving the first written communication from the debt collector. Requesting validation of the debt can also be done over the phone. By requesting validation of the debt, the consumer is making the debt collector verify that the debt is actually owed.

If the amount is accurate and you still are not able to pay on the debt, it is always recommended that you speak directly with the creditor and explain the situation.  Tell them that you are unable to pay.  Never provide your bank account, routing number or debit card information to the creditor.

The FDCPA also dictates other requirements as to when the collector can call, which is only between the hours of 8 a.m. and 9 p.m. The debt collector is also restricted from using any language or tactics that may be deemed harassing, threatening or abusive.  If the debt collector tries to contact other third parties, such as friends or family members of the individual, they may not disclose information on why they are trying to reach the debtor but can only contact them to get the correct contact information for them.

The ideal situation would be for the creditor to work with you on an affordable repayment plan option. Many times, a letter from the debtor is not enough to get the collector to stop communication, and at this point, an attorney may be needed to write a letter. If a third-party debt collector persists in this behavior, you may be entitled to file a legal claim for an FDCPA violation and sue them for damages, which can include attorney’s fees plus an additional $1,000.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What Happens during the Debt Collections Process?

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Debt collections are easily one of the most stressful situations a person can face. Dealing with debt collectors is also one of the most complained about issues, and it is not hard to see why. It helps to know how to handle debt collectors and the protections you have as a consumer.

When you are struggling to make ends meet financially, it can be frustrating to have debt collectors calling you or even worse, the threat of having your wages garnished or a lawsuit filed against you. A strong federal law, called The Fair Debt Collections Practices Act (FDCPA), protects consumers against certain unfair collection practices, which include:

  • Calling you repeatedly to annoy or harass you.
    • Trying to collect more than you owe.
    • Fail to send a written notice of the debt.
    • Threatening violence.
    • Threatening dire consequences (i.e. – lawsuits, criminal prosecution, wage garnishment, jail time, permanently ruining your credit).
    • Using profanity and abusive language.
    • Calling before 8 a.m. or after 9 p.m.
    • Revealing debt to third parties (i.e. – family, neighbors, friends, co-workers, etc.).
    • Contacting you at your work, after you have requested them to stop.
    • Failing to verify disputed debts.
    • Ignoring cease communication requests.

What Happens During Collections?

The first thing a consumer will notice after an account has been sent to collections is the number of calls from the creditor or the collection agency will increase. Debt collectors will try any means possible to get a hold of the debtor and get payment, even if this means violating a consumer’s rights. The debt collector will contact the consumer at any location possible, including home, cell phone or work number. When it comes to contacting you at work, certain restrictions do exist. The debt collector may not disclose any information regarding the individual’s debt, and if the individual requests that the communication stop at that point at the place of employment, under The Fair Debt Collections Practices Act (FDCPA),  the collector may not contact the person at work further.

The FDCPA also dictates other requirements as to when the collector can call, which is only between the hours of 8 a.m. and 9 p.m. The debt collector is also restricted from using any language or tactics that may be deemed harassing, threatening or abusive.  If the debt collector tries to contact other third parties, such as friends or family members of the individual, they may not disclose information on why they are trying to reach the debtor but can only contact them to get the correct contact information for them.

Validation of Debt

Consumers have the right to request written validation of the debt from the debt collector. In fact, the debt collector is required to notify you that he or she has the right to request this validation within 30 days after receiving the first written communication from the debt collector. Requesting validation of the debt from the debt collector can also be done over the phone. By requesting validation of the debt, the consumer is making the debt collector verify that the debt is actually owed.

Click here to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

How Long Can a Debt Collector Pursue an Old Debt?

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When it comes to debt collections, certain rules do exist as to how long a debt collector can attempt to collect on a debt. These rules apply to the actual lawsuits themselves, as well as credit reporting.

Statute of Limitations

Every state has what is referred to as a statute of limitations, laws which set a limit as to how long an individual has to bring a legal claim on a certain matter. States have limitations on how long a debt collector has to collect on a debt. In Florida, the statute of limitations varies for different types of debts. For written contracts such as personal loans, the statute of limitations is five years. So once this type of debt is more than five years past due, the lender can no longer sue in order to collect owed money.

However, the problem is the debt collectors are not obligated to tell the consumer that they are past the statute of limitations. It is up to the consumer to do the research and know his or her rights if a debt collector is trying to communicate with a them regarding an old debt.  There are ways to deal with old debt. Most states have a statute of limitations for debt collections that restricts collections on debts that are four to six years after the date the debtor last made a payment.

One thing to keep in mind, if you think the debt is past the statute of limitations- do not pay on it, until you confirm. A single payment towards an old debt can revive that debt, restarting the statute of limitations.

Indefinite Attempts to Receive Payment

Technically, while there are laws that state how long a debt collector can take legal actions to collect on a debt, there is no law saying they cannot keep trying to contact the individual to pay on the amount.  For all purposes, the original creditor can try to get the individual to pay indefinitely, unless the debt has been settled or discharged in bankruptcy.

The law does restrict certain tactics taken by third-party debt collectors who are trying to collect on a past-due debt. The Fair Debt Collections Practices Act (FDCPA) specifically prohibits any communication from third-party collectors that is abusive, harassing or threatening. If a third-party debt collector is continuing to call to the point where the communication is harassing, the individual can send a written letter ordering that debt collector to cease and desist.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

 

Bankruptcy Law, Credit, Timothy Kingcade Posts

How to Spot a Debt Collection Scam

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Debt collection scams are an all-too-common occurrence these days as scammers look for ways to take advantage of people already in a bad financial situation. A recent scam has been reported by the Federal Trade Commission (FTC), where scammers have been calling residents regarding fake power bills. These callers are threatening to turn off the person’s electricity if they do not immediately pay them over the phone.

Last year, the FTC received a total of 2.7 million complaints with debt collection scams being the largest category of complaints. Not all scams are the same, and some scammers, like the utility ones, are far from sophisticated in their schemes. However, the FTC is reporting that many collections scams have become more advanced. The individuals contacting the callers are using names of real local businesses or are posing as lawyers. Some of their claims are so believable that the person on the receiving end of the call believes they are legitimate.

It is important to always have your guard up. Ask for the name of the business contacting you and do the research before simply paying the debt. Also, be aware of what methods the company is using to make threats. For example, if the company trying to collect upon a debt is saying that they will only accept payment in the form of a prepaid gift card, that is a red flag that the caller is perpetuating a scam. The same goes for a company threatening to have someone arrested for nonpayment. Other legal avenues are available for a company collecting on a payment, and the first option is not to have that person arrested.

When someone gets a call from a potential scam, after asking the name of the company, it is recommended that the caller get off the phone and call the company back by using the phone number accessible via the consumer’s own records. Inform the company that someone has made contact and is demanding payment. That company will want to know whether its name and identity is being used. The company will also be able to verify whether any actual debt collection is being pursued against the caller.

If the person on the other end of the phone is a legitimate third-party debt collector and is still using harassing techniques, the consumer still has rights. Under the Fair Debt Collection Practices Act (FDCPA) a consumer is protected from debt collectors who are using unfair, abusive or harassing debt collection practices. Many debt collection agencies resort to scare tactics to get individuals to pay on their bills, but these tactics can become illegal if they cross the line from persuasive to abusive.

If an individual is facing debt collection proceedings, bankruptcy may be a viable option for him or her. After a petition for bankruptcy has been filed, an automatic stay goes into effect which puts an immediate stop to any pending collection proceedings which can give the individual relief from ongoing collections attempts and contact from debt collectors.

Click here to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

 

 

 

 

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

What Constitutes Harassment by a Debt Collector?

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For an individual struggling with insurmountable debt, the continuous calls and communications can be overwhelming and stressful. However, at what point do these communications constitute harassment? And if an individual believes that he or she is being harassed by a debt collector, what is the recourse this person has against the debt collector?

Fair Debt Collection Practices Act

Debtors have protection from harassment from third-party debt collectors under a federal law, the Fair Debt Collection Practices Act (FDCPA). Under this law, debt collectors are prohibited from harassing, oppressing or abusing debtors while trying to collect upon a debt. This behavior includes continuous phone calls meant to annoy or harass the individual, use of obscene language and making threats of violence or retaliation against the debtor.

Specifically, the FDCPA prohibits the following:

  • Repeated phone calls annoying, abusing or harassing the debtor or anyone answering the phone;
  • Use of obscene or profane language in these communications;
  • Threats of violence or causing harm to the debtor or other person on the phone;
  • Publishing a list of individuals who refuse to pay debts, not including reporting the information to a credit reporting company;
  • Not disclosing the debt collector’s information when communicating with someone;
  • Contacting third-parties connected to the debtor and giving them information regarding the debt and/or why they are calling;
  • Contacting the debtor at work or showing up at the debtor’s work.

The FDCPA prohibits misrepresentations from being made about the debt. Essentially, the FDCPA makes it so debt collectors cannot use false, misleading or fraudulent practices when collecting on the debt. This means the debt collector cannot lie about how much is owed, cannot make false threats that the company will have the debtor arrested, cannot make false statements that the person on the phone is an attorney when he or she is not, cannot make threats to do things that are not legal, and cannot make threats to do something that the debt collector, in fact, has no intention of doing or right to do.

After the debtor has experienced a series of these violations, the FDCPA requires the debtor to send written notification to the debt collector to stop communicating with him or her and informing the debt collector that this communication is in violation of the FDCPA. If the debt collector continues to push and communicate with the person after this notification, it is recommended that the debtor file a claim for an FDCPA violation. If the individual does file an FDCPA claim and wins, the debt collector will pay the debtor damages, as well as attorney’s fees for having to file the claim.

It is highly recommended that the debtor keep a file of all communication received by the debt collector and keep all recordings of voicemails or other communications. It is also recommended that the debtor write down all dates and times that these conversations have occurred, along with notes about what was discussed in the event a legal claim needs to be filed.

Our firm works to hold creditors accountable for violating the protections allotted by the U.S. bankruptcy laws.  Recently, our firm’s motion was granted by a Florida judge in a case that held the creditor in contempt of court for violating the automatic stay in a Miami bankruptcy case. The Order directed the creditor to cease and desist all eviction proceedings until further order of the court.  The creditor in this case was also required to pay attorneys’ fees for our firm having to bring forth the motion to enforce the automatic stay to protect our client.

If you are dealing with a creditor you think may have violated the automatic stay, contact your attorney immediately.  An experienced Miami bankruptcy attorney will know whether the contact was innocent in nature or a willful violation worth pursuing.

Click here to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

 

Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Debt Collectors’ Dialing Strategies Come Under Scrutiny in State Supreme Court Ruling

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A recent Massachusetts Supreme Court ruling has given consumers more protection from creditors seeking payment on outstanding debts while leaving some questions unanswered for creditors. The court has ruled in Armata v. Target Corporation, that creditors are not exempt from rules that limit contact with consumers who owe them money.

A copy of the decision can be found here.

In this case, the consumer, Debra Armata, incurred debt through her Target-brand debit card, and this debt became more than 30 days past due. Target then began to collect on the debt and contacted Armata using a predictive dialer. These devices transfer the cardholders who do answer the phone to a live representative about 95 percent of the time with the other five percent of the time leading the person to a recorded message.  There are no voicemails left if the person does not answer the phone.

Under Massachusetts law, debt collection laws limit how many times a creditor can try to contact a consumer telephonically to collect on a debt, limiting these calls to two every seven days. However, according to the Massachusetts Attorney General, any unsuccessful attempts by the creditor do not constitute initiation of communication if the creditor was “truly unable” to reach the debtor or leave a message.

Target did not argue that it contacted the plaintiff more than two times in seven days. However, the company argued it did not initiate communications because it uses an auto dialer and does not leave voicemails if no one answers. The company stated it was exempt from these regulations for this reason as it was “truly unable” to reach Armata.

The Court disputed this argument stating that Target was trying to create too large of a loophole that would essentially allow any creditor to avoid the limits imposed by state law by using auto dialing technology. It would leave debtors unprotected from these continuous communications.

The attorney general’s term “truly unable” was better defined in the opinion. One example given by the court was if the person did not answer the phone and did not set up his or her voicemail. If that situation occurred or the person’s voicemail was full, or phone disconnected, then the company would qualify as being “truly unable” to reach the consumer.

The court also clarified that creditors who use automatic dialers or those who voluntarily decide to not leave voicemail messages, such as Target, are subject to the state’s regulations.

Target had also argued that the company was not able to leave voicemail messages because doing this would risk violating the Fair Debt Collection Practices Act (FDCPA). The court pointed out that the company did not fall within the restrictions of the FDCPA, since that law covers third-party debt collection agencies and not the actual creditors themselves, such as Target.

Click here to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Credit, Timothy Kingcade Posts

Steps to Take if Your Personal Debt Goes to Collections

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When someone is facing serious amounts of debt, it can feel like there is no end in sight. Odds are the individual is fielding continuous calls from debt collectors, all of whom are threatening legal proceedings if the person does not pay the debt owed. However, certain steps can be taken to help handle personal debt issues and hopefully avoid a lawsuit.

1. Review the Debt in Question.
The first step is to review the debt amount. Do not automatically trust what the debt collector is telling you, the debt they are attempting to collect could be expired or past the statute of limitations. It is recommended that the person facing the debt collection action first examine the information provided, research the collection agency that is reporting the debt and see if any discrepancies exist. The debtor has 30 days to verify that the amount is correct after the collection agency has contacted him or her. Take advantage of this time and carefully review the debt before making any payments.

2. Dispute an Incorrect Debt.
If, during this 30-day period, the individual discovers any figure that is inaccurate or unusual, it is recommended that he or she report this and provide proof that it is inaccurate. It is possible that the debt collection agency will clear up any discrepancy and adjust it as necessary.

3. Be Aware of the Fair Debt Collection Practices Act.
Not many individuals are aware that they do, in fact, have rights when it comes to collections. Simply because someone has missed a payment and has fallen delinquent does not mean that he or she has no rights. The Fair Debt Collection Practices Act is a federal law that protects the rights of consumers against harassment and aggressive collection practices by third-party collection agencies. Take the time to review the law and to understand what these rights include.

4. Discuss Payment Options.
If the debt is valid, it can help to talk with the collection agency about payment options. At the end of the day, these companies would rather be paid than have the debt be discharged in bankruptcy. Talk with the company to see what payment options are available. The consumer should examine his or her household budget to see what can be done to make payments to repay this debt.

5. Negotiate the Debt.
Another option that many consumers do not realize they have is to negotiate the debt. Many debt collectors or creditors are quite open to discussing other options for payment. If the individual is facing extreme circumstances or hardships, the creditor or collector may be willing to at least reduce the amount of debt owed or extend the deadline for payment.

6. Know the Statute of Limitations.
Every legal matter comes with its own set deadline for when legal claims can be made. Every state has its own statute of limitation for how long debts can be pursued. It is important that the consumer research what his or her timeline is and know what actions affect this timeline.

7. Be Aware of the Timeline.
After the collection proceeding is over, the debt will stay on the person’s credit report for seven years. This seven-year timeline does not start from when the delinquent account was originally opened but rather seven years from the time it became delinquent. Being aware of this fact can help when negotiating a payment on the debt since a paid debt will be viewed more favorably than one that continues to remain unpaid.

8. Understand the Consequences.
It is equally as important that the individual know what the consequences are to leaving a debt unpaid for too long. It also helps to know what the consequences are of ignoring a legal action if one is eventually filed. If the person is sued, it is extremely important that he or she at least appear in court and respond. It can be tempting to just ignore the matter, but by not appearing in court, the individual is likely to lose by default judgment and could have their wages garnished.

Click here to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief

Rent-A-Center Accused of Kicking in Doors and Crushing Customers’ Credit

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Rent-A-Center has recently made headlines due to its unethical treatment of customers and harassing debt collection practices.  In fact, it has gotten so out of hand that the complaints and harassment lawsuits have grown in numbers.

Rent-A-Center customers throughout the U.S. are now complaining that Rent-A-Center has virtually destroyed their finances after they have leased electronics, appliances and furniture from the company.

Rent-A-Center is a Texas-based publicly-traded company. The company started in 1986, offering consumers a way to purchase electronics and other household items that they would not be able to afford otherwise. The customers rent these items, making payments on a monthly, semi-monthly or even weekly basis. At any time during the lease, the customer can terminate the lease and return the household goods, or they can keep making payments until they own the items in full. The company’s mission aims to help those in lower-income households by allowing them to purchase items they would not otherwise be able to afford.

Once a customer begins to fall behind on his or her payments, that is where issues arise. Just one missed payment, missed by something as small as a day, can trigger aggressive collection efforts.

One federal lawsuit, brought by a Florida resident, claimed that she was forced to hide in a closet with her two young sons while a Rent-A-Center employee pounded on her door to collect payment on her rented household items. Another lawsuit claims that a Rent-A-Center worker kicked in her front door after she fell behind on payments for her laptop computer.

Even debt collectors are complaining about the practices of Rent-A-Center. In 2014, the collection company, Acceptance Now, took on accounts from Rent-A-Center, but as soon as debt collectors began making efforts to collect on the accounts, customers continually informed the agents that their debts had already paid. The problem was Rent-A-Center’s records did not reflect these payments.

Many states allow rent-to-own companies, like Rent-A-Center to file criminal charges against customers who do not pay on their rental agreements and do not return items when asked to do so. The collectors are well aware of this information, and Rent-A-Center regularly uses these threats to scare customers into making payments. It can make customers feel trapped in a no-win situation, not only fearing for their safety against aggressive collectors but fearing jail time if they are not able to make payments.

Between January 2016 and June 2017, the Federal Trade Commission received 2,779 complaints regarding both Rent-A-Center and Acceptance Now. Out of these complaints, 90 percent of them involve aggressive collection tactics, involving employees banging on customer’s houses and blasting car horns outside of homes.

Know your rights when it comes to creditor harassment. The Fair Debt Collection Practices Act (FDCPA) was designed to help prevent creditor abuse and harassment.

Click here to read more on this story.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What happens if I ignore a debt collector?

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If you are unable to make payments on a debt, you may be tempted to turn a blind eye until you are able to come up with the money. But this is one of the worst things you can do.  You always have the right to ignore a debt collector, but it will not make the debt go away.  Here are some possible scenarios that can occur if you ignore a debt collector:

They leave you alone.  You might think this is a good thing and perhaps the debt collector has forgotten about your debt.  But this is unfortunately not the case.

Your credit score suffers.  A past due debt will appear on your credit report regardless of whether you respond to debt collection attempts or not.

Your debt is transferred to another company. If the first collector is unable to reach you after repeated attempts, your account can wind up with a different agency.  This can happen a number of times if the balance remains unpaid.

The debt continues to grow. Just because you stop paying your debt, does not mean the interest stops growing.  Add on collection costs and this can cause the debt to double over time.

They reach out to people you know.  Debt collectors can reach out to people who know you to try and locate you, especially if you have changed your phone number or address to avoid collection attempts.  They are not allowed to tell them about your debt.  Revealing debt to third parties (i.e. – family, neighbors, friends, co-workers, etc.) is a violation of the Fair Debt Collection Practices Act (FDCPA).

A lawsuit is filed against you. Ignoring a debt and failing to communicate with a debt collector can result in you being sued. You can try your best to defend yourself, but if a judgment is entered against you it can result in wage garnishment and even funds being withdrawn from your bank account to pay off the debt.

Stress mounts.  The stress of debt can cause anxiety, sleepless nights, even marital problems. Avoiding debt collectors can leave you on the edge, wondering when the next phone call will be or collection letter will arrive in the mail.

Click here to read more on this story.

If you have any questions on this topic or are struggling with out of control credit card debt, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What happens if a creditor tries to collect on a debt during my bankruptcy?

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After you file for bankruptcy, creditors are not allowed to contact you regarding any debt you owe; they must deal only with your attorney.  The protections allotted by the bankruptcy automatic stay prohibit all collection activity, including legal action, wage garnishment, even contact by phone or mail in an attempt to collect on a debt.

There are a few exceptions. For example, the automatic stay does not stop criminal cases, some child support actions, and certain eviction cases. The automatic stay also does not apply to debts incurred after the bankruptcy case was filed. Here’s how to determine if a creditor violated the automatic stay and what you can do if a creditor continues trying to collect a debt.

The penalties for violating the automatic stay depend on the nature of the violation and whether it was done with deliberate disregard for the bankruptcy filing. You have several options if a creditor continues to pursue a debt in violation of the automatic stay.

Tell the creditor about your bankruptcy. Most debt collectors will stop contacting you if you tell them this.  Many times the debt collector is unaware of your case.  For example, if a collector garnishes your wages after the bankruptcy case is filed, it must immediately return the money.

Notify the bankruptcy court. If the collection attempts continue, the next step is to notify the bankruptcy court. The court can sanction the collector for violating its automatic stay order.

File a lawsuit. If a debt collector continues to try and collect on the debt, it may not only be violating the automatic stay but also other state and federal laws including, the Fair Debt Collection Practices Act (FDCPA).

Our firm works to hold creditors accountable for violating the protections allotted by the U.S. bankruptcy laws.  Recently, our firm’s motion was granted by a Florida judge in a case that held the creditor in contempt of court for violating the automatic stay in a Miami bankruptcy case. The Order directed the creditor to cease and desist all eviction proceedings until further order of the court.  The creditor in this case was also required to pay attorneys’ fees for our firm having to bring forth the motion to enforce the automatic stay to protect our client.

If you are dealing with a creditor you think may have violated the automatic stay, contact your attorney immediately.  An experienced Miami bankruptcy attorney will know whether the contact was innocent in nature or a willful violation worth pursuing.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.