Financial instability can be a major cause of stress to a person or family. Being in debt and receiving harassing phone calls and letters can compound this stress. These harassing calls may occur at home and even at work, risking job security. Laws are currently in place to keep these calls from happening and to punish the creditors who do not follow them.
Debt collectors need to follow strict rules when it comes to communication about debt. The calls may not announce the debt to the person answering the telephone and the calls must go through an attorney if one represents the debtor. Any calls should be made between the hours of 8am and 9pm only, and no calls should be made to places of employment if prohibited by the employer. These calls should never consist of profanity, threats, or false representation. If collectors do not adhere to these rules, as well as other stated in the Fair Debt Collection Practices Act, the debtor may be allowed legal recourse.
Bankruptcy will also get these calls to discontinue. During the bankruptcy process, the creditors are contacted and either a plan of repayment or dissolution is reached. An attorney helps file the necessary paperwork for the bankruptcy and also communicates with the creditors as mentioned above. Depending on the type filed, the bankruptcy process contains quite a few steps, which will be made easier with the help of a qualified attorney.
A fresh start to finances can help with stress in many different ways. Bankruptcy may never be an easy decision or a fast path to travel, but it can assist debtors in starting over. Credit counseling is a typical part of the process to help keep the pattern from repeating. All in all, bankruptcy with a proper attorney's guidance can ease a debtor back into the world of financial freedom.
For more information and guidance about bankruptcy issues and considerations, visit http://www.gallerlaw.com. Galler Law specializes in Bankruptcy law and protection.
Monday, October 26, 2009
Wednesday, October 14, 2009
Avoid Financial Cons Which Will Damage Future Credit History Far More Than Bankruptcy Ever Could
"Debt consolidation for free", "no cost debt relief", "free credit counseling to end credit card debt", or "get out of debt fast" are sales pitches which almost everyone has heard or seen on radio, television, or in print. These pitches should be grouped with all of the other "get rich quick" schemes and pyramid scandals that have prospered in recent decades.
The truth is if it sounds too good to be true, it almost always is. While there are some legitimate debt consolidation companies out there, a large number of them are in fact fly by night operations in which after gaining a customers confidence, exploit and leave the victim in a worse financial state than before. With the proliferation of website businesses, it can be very difficult to determine which debt consolidation companies are legitimate and which are scams.
Because the financial market fluctuates constantly and banking institutions, lending laws, and credit reporting agencies are constantly changing the rules, promises and guarantees of getting out of debt quickly or instant "debt forgiveness" are warning signs to avoid. Debt consolidation and debt reduction is just that, reduction of the amount owed. The debt still exists, but in smaller payments and with lower interest rates.
The key to reducing debt and eliminating debt isn't a magic phone number, but a structured adjustment and manipulation of spending habits which will allow an individual or family to live within their financial means. A large percentage of individuals can find this exceedingly difficult and end up declaring bankruptcy regardless. Many well known and prominent people have experienced this same problem despite having millions of dollars. Bankruptcy has not damaged their financial success.
That is because declaring bankruptcy is not the financial failure of an individual, but the beginning of creating a solid financial base from which to grow and improve upon in order to recreate a sound financial credit history. Again the key is to moderate spending habits after bankruptcy to ensure financial stability in an unstable economy. Banking institutions and credit unions usually have financial advisors on hand. Many bankruptcy attorneys also provide financial advice or can refer individuals to qualified financial advisors to help clients achieve their goals.
For more information and guidance about declaring bankruptcy and protecting assets through the bankruptcy process, visit http://www.gallerlaw.com. The Galler Law Firm, LLC. specializes in bankruptcy and debt consolidation, as well as, worker's compensation and motor vehicle accident representation.
The truth is if it sounds too good to be true, it almost always is. While there are some legitimate debt consolidation companies out there, a large number of them are in fact fly by night operations in which after gaining a customers confidence, exploit and leave the victim in a worse financial state than before. With the proliferation of website businesses, it can be very difficult to determine which debt consolidation companies are legitimate and which are scams.
Because the financial market fluctuates constantly and banking institutions, lending laws, and credit reporting agencies are constantly changing the rules, promises and guarantees of getting out of debt quickly or instant "debt forgiveness" are warning signs to avoid. Debt consolidation and debt reduction is just that, reduction of the amount owed. The debt still exists, but in smaller payments and with lower interest rates.
The key to reducing debt and eliminating debt isn't a magic phone number, but a structured adjustment and manipulation of spending habits which will allow an individual or family to live within their financial means. A large percentage of individuals can find this exceedingly difficult and end up declaring bankruptcy regardless. Many well known and prominent people have experienced this same problem despite having millions of dollars. Bankruptcy has not damaged their financial success.
That is because declaring bankruptcy is not the financial failure of an individual, but the beginning of creating a solid financial base from which to grow and improve upon in order to recreate a sound financial credit history. Again the key is to moderate spending habits after bankruptcy to ensure financial stability in an unstable economy. Banking institutions and credit unions usually have financial advisors on hand. Many bankruptcy attorneys also provide financial advice or can refer individuals to qualified financial advisors to help clients achieve their goals.
For more information and guidance about declaring bankruptcy and protecting assets through the bankruptcy process, visit http://www.gallerlaw.com. The Galler Law Firm, LLC. specializes in bankruptcy and debt consolidation, as well as, worker's compensation and motor vehicle accident representation.
Thursday, October 1, 2009
Bankruptcy - Learning Better Spending Habits will Prevent this Financial Do-Over-Agail
Filing for bankruptcy cannot make one better with handling money, but it can allow for a fresh start. When the decision is made to file, a qualified attorney should be contacted. The attorney will help to follow the correct path and assure that the paperwork is completed properly. The first noticeable occurrence is that the creditors will cease calling. This is a result of the bankruptcy petition filed in the courts. The creditors must stop collections proceedings once they receive notice of the bankruptcy petition. If a creditor fails to cease the proceedings, they may be subject to fees and court sanctions. The bankruptcy petition becomes a matter of public record. This is not a confidential process, however, only creditors will be physically notified by the courts.
The next step in the process is a court hearing. This usually occurs a month after the petition filing. The hearing is led by a bankruptcy trustee, not a judge, and is the first meeting of the creditors. The debtor will be under oath for this hearing and is required to answer questions about the previously filed paperwork, assets and debts. Creditors may also ask the debtor questions at this time. In most cases a primary residence and vehicle may be kept, unless a payment agreement with the creditor cannot be reached.
Bankruptcy is seen on a credit report for seven to ten years. While it is an option to receive a credit card after bankruptcy, one must be careful not to fall back in the same habits. Most companies that issue credit cards after bankruptcy either keep limits low or interest rates high to help deter debtors from resorting to past patterns. Secured credit cards are also another option. These cards are backed with money that the debtor has already contributed. In ways, these are much like debit cards.
Bankruptcy can typically not expel student loan debt, unless there are extenuating circumstances. If a student loan was provided by the government, it must be repaid. However, if it is not a loan from a government institution or if the loan would cause hardship for the debtor or debtor's dependents, the loan may be discharged. Alimony cannot be discharged unless the amount provides more harm to the debtor than benefit to the spouse.
Bankruptcy should always be considered a final option and last resort. Bankruptcy should never be seen as an easy way out or a way to cheat the system. It is a court process where debtors with severe financial situations can be relieved of their debts. By having a qualified attorney to help with this difficult process, the choice of bankruptcy should go smoothly.
For more information and guidance about declaring bankruptcy and protecting assets through the bankruptcy process, visit http://www.gallerlaw.com. The Galler Law Firm, LLC. specializes in bankruptcy and debt consolidation, as well as, worker's compensation and motor vehicle accident representation.
The next step in the process is a court hearing. This usually occurs a month after the petition filing. The hearing is led by a bankruptcy trustee, not a judge, and is the first meeting of the creditors. The debtor will be under oath for this hearing and is required to answer questions about the previously filed paperwork, assets and debts. Creditors may also ask the debtor questions at this time. In most cases a primary residence and vehicle may be kept, unless a payment agreement with the creditor cannot be reached.
Bankruptcy is seen on a credit report for seven to ten years. While it is an option to receive a credit card after bankruptcy, one must be careful not to fall back in the same habits. Most companies that issue credit cards after bankruptcy either keep limits low or interest rates high to help deter debtors from resorting to past patterns. Secured credit cards are also another option. These cards are backed with money that the debtor has already contributed. In ways, these are much like debit cards.
Bankruptcy can typically not expel student loan debt, unless there are extenuating circumstances. If a student loan was provided by the government, it must be repaid. However, if it is not a loan from a government institution or if the loan would cause hardship for the debtor or debtor's dependents, the loan may be discharged. Alimony cannot be discharged unless the amount provides more harm to the debtor than benefit to the spouse.
Bankruptcy should always be considered a final option and last resort. Bankruptcy should never be seen as an easy way out or a way to cheat the system. It is a court process where debtors with severe financial situations can be relieved of their debts. By having a qualified attorney to help with this difficult process, the choice of bankruptcy should go smoothly.
For more information and guidance about declaring bankruptcy and protecting assets through the bankruptcy process, visit http://www.gallerlaw.com. The Galler Law Firm, LLC. specializes in bankruptcy and debt consolidation, as well as, worker's compensation and motor vehicle accident representation.
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