LitWiki - User contributions [en]

Debt Relief

2004-12-11T18:33:26Z

Fidele72001: /* Debt Management */

== Introduction ==
[[Image:Debtrelief.jpg|right|Debt Relief]]
In today's world, debt is almost unavoidable. We have been brainwashed to think that more is better, regardless of what more is. Our society is largely commercialized. We are bombarded with subliminal messages, urging us to buy, buy, and buy; and many of us do just that. We buy without knowing how we are going to pay. We live above our means trying to keep up with the neighbors. The cost of living increases but our income seems to stay the same. It is virtually impossible to avoid getting into debt. In our diverse society, we have one basic commonality: [[Debt Relief:Definitions#Debt| debt]]. Debt can be controlled, but we all need to understand it and learn to avoid too much of it.

The following information is designed to answer questions about debt and offer solutions to control it. Contents range from financial planning to [[Debt Relief:Definitions#debt Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.

==Debt Management==
'''Debt Management''' is the process by which debts are consolidated into one '''lower monthly payment'''. This '''one payment''' is an amount clients '''can afford''' and that is apportioned amongst their creditors. The payments made go directly to creditors on a client's behalf.

An [[Debt Relief: Interview#Interview | Interview]] conducted with a local agency on the issue of debt management summed up some important for anyone seeking help managing their credit. Here is a summary of the information gathered up from the meeting:

Credit counseling and debt management agencies offer professional help to individuals in need of assistance in paying off their debts. These agencies look at the client's bills, listen to their needs, make recommendations, and create budgets. Although these companies have received bad press in the past, researching before selecting a company can assure you of their safety. In your search make sure your choice is accredited with an institution, such as the Better Business Bureau. Also a debtor must make sure to look at state laws, so that he/she is not overcharged for financial help.

The steps most of these agencies take to help debtors eliminate debt are:

1) Helping debtors to assess their debt situation.

2) Avoiding overspending and handling existing debts are other areas consultants help debtors with.

3) Helping the client to build and maintain good credit.

Most financial advisors agree that the most important step a person must take before seeking counsel is to change their money management skills. The debtor must change the way he/she thinks. They must rid themselves of all financial anxieties or debt will probably accumulate again.

==Managing Your Credit==
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as [[Debt Relief:Bibliography#Experian | Experian]], [[Debt Relief:Bibliography#Trans Union | Trans Union]], and [[Debt Relief:Bibliography#Equifax | Equifax]]. Whether your credit is good or bad is determined by your [[Debt Relief:Definitions#Beacon or credit score |Beacon or credit score]]. If your score is low, you are considered "high risk" and chances are your request for credit will be denied. The higher your credit score, the more likely you will receive approval. Each time you apply for credit, your score drops. If your credit score is low, there are steps you can take to help manage your credit and increase your score.

*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in your checking account.
*Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''.
*Do not use your credit cards to purchase food. You will pay 10 times more in interest than what one meal would have cost if you had paid cash.
*If possible, consider transferring the balance of your credit card to a lower interest rate card. If you do this, immediately destroy the card with the high rate and close the account.
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit card| unsecured credit]] cards on your own.

For those who need assitance managing their credit there are a variety of choices and options out there. In an article by Hispanic magazine, financial author Julie Stav explains what a FICO score is, how credit bureaus calculate it, and steps on ways to improve your score. An article by U.S. News and World Report states the following steps to keep this score manageable:

1.) Pay bills on time.

2.) Pay down debt.

3.) Maintain long-term credit relationships.

4.) Do not apply for too many loans.

A great self-help guide to consider is Repair Your Own Credit which instructs debtors how to repair their credit and how to reestablish credit. It also lists organizations that will either give people free assistance or charge a very low cost to help someone stay out of debt. In NEA Today, they also refer to some credit management agencies such as Equifax as well as warn people about credit repair clinic rip-offs saying they do not do anything that you cannot do yourself. The counselors at Credit Union Magazine suggest that bankruptcy be the last resort in certain circumstances.

==Credit Card Consolidation==
Credit card agencies such as Visa, Discover, MasterCard, and American Express have departments that provide essentially the same services as debt consolidation and debt management companies; however, debt reduction and credit counseling are entirely different functions than what the credit card companies do best. Credit card companies typically prefer their card holders use specialized debt consolidation firms to help with debt consolidation. These firms take on a substantial burden of individual repayment agreements and terms as well as attendant paperwork. MasterCard for example, prefers their card holders use a debt management service. Therefore, Mastercard does not advertise a debt management department within their company. The Mastercard consolidations department will respond to requests for debt consolidation if a written request from the card holder is made to the proper department.

Although trying to set up a debt management plan using services available through the various credit card companies may prove
difficult, the small fees and inconvenience associated with debt management companies may be avoided.

PBS' Frontline aired a comprehensive report on 11/23/04 named [[Debt Relief:Bibliography#Special Report | The History of the Credit Card]]. The report gives an in depth look at the credit card business and common practices unknown to many of us.

When the topic of debt management and relief comes up, consolidation is usually one of the words that follows. Many experts agree that debt consolidation is a good idea when it seems a person is getting too deep in debt. Three things to consider before deciding on debt consolidation:

# Evaluate where you stand with your debts.
# Don't wait until you are in over your head.
# Be sure to understand how debt consolidation truly works.(Morris, 103)

Numerous experts also agree that a nonprofit company is the best way to go for premium terms. Also, no matter if they are for-profit or nonprofit, one should gain as much information as possible about the company before dealing with them. Futhermore, ensuring the institution you choose works with your creditors. Checking their status with the Better Business Bureau is a great idea. (Brown, 326) However, there are many different opinions on how to go about this. One common opinion is that only school loans should be consolidated, and this is only because of the enormous necessity of a college education. (Orman, 149)

==Credit Harrassment==
'''Creditor Harassment: Know Your Rights With Creditors'''.
Are you being harassed by collection agencies? A creditor has the right to contact you when you fall past due on a debt owed to them. However, you have rights if you feel you are being treated unfairly by a debt collector. Your rights are protected under the [[Debt Relief:Fair Debt Collection Act|Fair Debt Collection Act]].

How can you protect yourself from harassment? Asking a collector to stop calling should be effective in most cases. However, a [[Debt Relief:Cease and Desist letter| Cease and Desist letter]] can be sent to third party collection agencies. The Cease and Desist letter will prevent a collection agency from calling you. Once the letter has been received, they may not contact you again except to say there will be no further contact or notify you that a specific action will be taken.

You may not send a cease and desist if the debt is still owned by the original creditor, such as a bank or credit card. Cease and desist letters may only be sent to
a third party, such as a collection agency or attorney.

The Fair Debt Collection Practices Act protects debtors from unfair debt collection processes. The Act ensures you are treated fairly and prohibits certain methods of debt collection. The Collectors (both original and third party agencies) are unable to:
* Harass, oppress, abuse, or publish lists of consumers who refuse payment
* Use profane language
* Repeatedly use the telephone to badger someone
* Give false information
* Imply they are attorneys, government representatives, or work for a credit bureau
* Insinuate you have committed a crime
* Falsely suggest they work for a credit bureau
* Misinterpret the debt amount
* Submit false information about you to anyone (including credit bureaus)
* Indicate sent forms are from the court or government agency when they are not
* Participate in unfair practices when collecting debt
* Obtain amounts greater or less than debt amount (unless state laws permit change)
* Deposit a post-dated check prematurely
* Use deception to make a debtor accept collects calls
* Threaten to take property (unless done legally)

What can you do if the law has been violated? A debtor has the right to sue a collector in a state or federal court within one year from the date of the violation. If a suit is favored by the debtor you may recover money for damages, court and attorney costs, plus an additional amount up to $1,000. A group of debtors can sue and recover funds for damages up to $500,000, or 1% of the collector’s net worth, whichever is less. Any problems or concerns can be reported to your state’s Attorney General’s office, the Federal Trade Commission, and/or the American Collectors Association or local State Bar Association.

Please be advised, that while a creditor may not call and harass you anymore, they still have the right to pursue the debt. However unlikely, they may still file suit in an attempt to collect the debt. Although Cease and Desist is a valuable tool, it should only be used when absolutely necessary.

==Bankruptcy==

'''Bankruptcy''' occurs when the federal system of statues and courts authorize insolvent individuals or businesses the ability to place their financial affairs under the bankruptcy court's control. When the debtor exceeds his or her ability to pay, the debtor may file a petition with the bankruptcy court for voluntary bankruptcy.

There are two types of personal bankruptcy: '''Chapter 7''' and '''Chapter 13'''. Chapter 7 bankruptcy and Chapter 13 bankruptcy are legal proceedings that are available to a person to cope with a financial crisis. Personal bankruptcy must be filed in a federal bankruptcy court. You will have to pay a minimal fee for court and attorney costs.

*'''Chapter 7 bankruptcy:'''involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.

*'''Chapter 13 bankruptcy:'''is a court-ordered and approved repayment plan to your creditors.

The following questions were answered during a telephone interview with Robert M. Matson from the law offices of Akin, Webster, & Matson, PC
Attorney at Law:

1) What is the process of filing for bankruptcy?
* First, we invite all potential clients for a free consultation. Second, upon arriving for a free consultation, we tell the clients to bring in a list of their credits as well as the total amount of income he or she might receive. Finally, after going over the client's credit history and income, we inform the client of the best course of action.
2) How long does filing for bankruptcy stay on your credit report?
* Filing for Chapter 7 bankruptcy stays on your credit report for ten years. Filing for Chapter 13 stays on your creit report for seven years or until you pay off your debt in full.
3) Does filing for bankruptcy make your credit bad?
* Yes, because somewhere in the future for instance let's say you want to take out a loan. If the person you are trying to get a loan from pulls up your credit report and sees that you filed for bankruptcy in the past, this person may think that your are incapable of paying off the loan.
4) How do you determine the fee that you charge clients who file for bankruptcy?
* The fee that clients are charged for filing for bankruptcy depends on the caseload and what type of bankruptcy the client is filing. In Chapter 7 bankruptcy cases the fee is based upon the client's assets. If the client has a large amount of assets, the higher the fee. If the client has a small amount of assets, the lower the fee. In Chapter 13 bankruptcy cases the judge determines the fee.
5) Are they any other forms of bankruptcy besides Chapter 7 and Chapter 13?
*Yes, their is Chapter 11 and Chapter 12 bankruptcy;however, Chapter 7 and Chapter 13 are the two most common forms of filing for individual bankruptcy.
* '''Chapter 11 bankruptcy:''' is the filing of bankruptcy by corporations and some individuals. This form of bankruptcy is rarely filed by individuals because it is rather expensive.
* '''Chapter 12 bankruptcy:''' is the filing of bankruptcy by farmers.
6) What is the difference between filing for Chapter 7 bankruptcy and Chapter 13 bankruptcy besides, the obvious of Chapter 7 being a liquidation of all you assets and Chapter 13 being court-ordered?
* In a '''Chapter 7 bankruptcy''' case the court appoints a trustee to handle the liquidation of your property. The trustee can sell or turn over your property to your creditors. The court then discharges your debts and you will become debt free.
*In a '''Chapter 13 bankruptcy''' case you are allowed to keep your property. This form of bankruptcy allows you to use future income to pay back your debts over a three to five year period. Once you have completed payments under this form of bankruptcy, your debts will be discharged by the court.

Most financial experts agree that bankruptcy should always be the last resort used for managing your debts. Bankruptcy has long lasting results. Filing for bankruptcy remains on your credit report for a period of ten years, making it more difficult to obtain credit in the future.

Bankruptcy is considered to be a "major bomb" in the world of credit. It should be the last resort in most cases for debt relief. Depending on the situation it is sometimes unavoidable.

When selecting a bankruptcy attorney, research his/her background for work experience in this sensitive field of debt relief. There are two types of personal bankruptcies, Chapter thirteen and seven. Corporate bankruptcy is called Chapter eleven and can only be filed by businesses.(Leonard, Attorney Robin "Bankruptcy". Berkley: Nolo Press, 1998). (Credit laws vary from state to state for filing and so does liquidation of assets over a period of time.)

Initially, the person filing will get a sigh of relief from being overwhelmed. Later, credit agencies and other lenders will analyze his/her credit information with a fine tooth comb for at least "ten" years or longer. This a combination of an advantage but a disadvantage to debt relief. Lenders almost immediately view a person as a high - risk for credit due to having bad debt written off through bankruptcies.

Chapter thirteen can be filed in a court with a trustee assigned and is considered a "reorganization" over a period of time to repay debt. The court trustee decides the total amount to be paid back and the time allotted for payment. The person's salary or income determines what will be allowed for the cost of living and the amount that will be disbursed to the creditors. No new debts can be accumulated without the court's permission (i.e., credit cards, loans). Upon closing, obligations are fulfilled and the person can begin on a new credit journey, but the on this new path the person needs to be aware the discharge will remain on the credit report for the next five to seven years.

Chapter seven can be filed in a court and the person will walk away from most of the debt secured and unsecured. The person's salary is freed from the threat of garnishments and being sued by the creditors. The information stays on the credit report for the next ten years and creditors will be view the person as a higher - risk than if the person had filed a Chapter thirteen.

When a person has filed for either bankruptcy it becomes public record information that can be viewed by anyone with acccess to public records documents. Again, bankruptcy needs to be considered as the very last option to debt relief.

==Collection Agencies==

A Collection agency is not the same as a debt counseling service.
Collections agencies are employed by creditors to recover money owed to them.

Creditors wait from six months to two years before turning a bad account over to a collection agency.
There are different reasons why the debtor ends up in collections: poor money management skills, illness, no money to pay, and sometimes the debtor just does not care to repay the debt.

The following information was gathered in an interview with Sandra Harden, Manager of Bibb Collections.

* A collection agency goes after an individual who will not pay a debt. This debt is anything from medical bills to florists bills.
* A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent.
* Bad debt is referred to a collection agency because the debtor has ''poor money management skills, is ill, or has a lack of desire to pay'' what is owed.
*Collection agencies charge a percentage of what is collected as a fee for the service.
*The methods used by credit agencies to collect unpaid accounts are telephone calls to the debtor, [[Debt Relief:Definitions#Sue or suit|lawsuits]], and [[ Debt Relief:Definitions#Garnishee or Garnishment|garnishments]]. Collection agencies will provide a pay plan as well.
*If the debtor does not pay using a pay plan, the collection agency will [[Debt Relief:Definitions#sue or suit|sue]] or [[Debt Relief:Definitions#garnishee|garnishee]] the wages until the debt is settled.

Something to keep in mind: If there is debt, it does not go away if ignored. The best way to manage it is to face it head on and explore options available.

[[Debt Relief:Definitions#Bankruptcy|Bankruptcy]] is recommended by collection agencies if the debt is severe and there are personal reasons for not being able to pay.
Credit counseling is also recommended.

A collection agency is a company that is contacted by the original lender to collect past due and defaulted accounts. (www.spu.edu)

The Federal Trade Commission states that if you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a debtor. If you fall behind in repaying your creditors, you will probably be contacted by a collection agency or a "delinquent debt collector".

Mike Ryan, President of NACM Southeast, wrote an article on "Qualifying Your Collection Agency". You, as an owner in a business have to be careful of what collection agency you choose. You have to ask yourself these questions: What does the agency know about your business? Can you rely on them to handle your accounts honestly, ethically, and effectively? Does the agency understand you may do business with this client again in the future? (Ryan, Mike. 106.8) This is the kind of agency that can legimately collect your money.

The FTC also gives a few tips on a fair debt collection. There is an act that requires that debt collectors treat you fairly and prohibits certain methods of debt collection. This is known as the Fair Debt Collection Practices Act. This does not mean that your debt will just go away. You still have to face this debt head on. This just protects your rights.

You can avoid these agencies all together by simply managing your money right. Self-Help may be the Best Help.

== Project Documents ==

* [[Debt Relief:Proposal | Proposal]]
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]
* [[Debt Relief:Primary Research Results | Primary Research Results]]
* [[Professional Communication]]
* [[Definitions and Common Terms]]

== Resources ==

* [[Debt Relief: Survey SAMPLE|Survey SAMPLE]]
* [[Debt Relief:Bibliography | Bibliography]]

Debt Relief

2004-12-10T04:33:26Z

Fidele72001: /* Debt Management */

== Introduction ==
[[Image:Debtrelief.jpg|right|Debt Relief]]
In today's world, debt is almost unavoidable. We have been brainwashed to think that more is better, regardless of what more is. Our society is largely commercialized. We are bombarded with subliminal messages, urging us to buy, buy, and buy; and many of us do just that. We buy without knowing how we are going to pay. We live above our means trying to keep up with the neighbors. The cost of living increases but our income seems to stay the same. It is virtually impossible to avoid getting into debt. In our diverse society, we have one basic commonality: [[Debt Relief:Definitions#Debt| debt]]. Debt can be controlled, but we all need to understand it and learn to avoid too much of it.

The following information is designed to answer questions about debt and offer solutions to control it. Contents range from financial planning to [[Debt Relief:Definitions#debt Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.

==Debt Management==
'''Debt Management''' is the process by which debts are consolidated into one '''lower monthly payment'''. This '''one payment''' is an amount clients '''can afford''' and that is apportioned amongst their creditors. The payments made go directly to creditors on a client's behalf.

An [[Debt Relief: Interview#Interview | Interview]] conducted with a local agency on the issue of debt management summed up some important for anyone seeking help managing their credit. Here is a summary of the information gathered up from the meeting:

Credit counseling and debt management agencies offer professional help to individuals in need of assistance in paying off their debts. These agencies look at the client's bills, listen to their needs, make recommendations, and create budgets. Although these companies have received bad press in the past, researching before selecting a company can assure you of their safety. In your search make sure your choice is accredited with an institution, such as the Better Business Bureau. Also a debtor must make sure to look at state laws, so that he/she is not overcharged for financial help.

The steps most of these agencies take to help debtors eliminate debt are:

1) Helpin debtors to assess their debt situation.

2) Avoiding overspending and handling existing debts are other areas consultants help debtors with.

3) Helping the client to build and maintain good credit.

Most financial advisors agree that the most important step a person must take before seeking counsel is to change their money management skills. The debtor must change the way he/she thinks. They must rid themselves of all financial anxieties or debt will probably accumulate again.

==Managing Your Credit==
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as [[Debt Relief:Bibliography#Experian | Experian]], [[Debt Relief:Bibliography#Trans Union | Trans Union]], and [[Debt Relief:Bibliography#Equifax | Equifax]]. Whether your credit is good or bad is determined by your [[Debt Relief:Definitions#Beacon or credit score |Beacon or credit score]]. If your score is low, you are considered "high risk" and chances are your request for credit will be denied. The higher your credit score, the more likely you will receive approval. Each time you apply for credit, your score drops. If your credit score is low, there are steps you can take to help manage your credit and increase your score.

*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in your checking account.
*Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''.
*Do not use your credit cards to purchase food. You will pay 10 times more in interest than what one meal would have cost if you had paid cash.
*If possible, consider transferring the balance of your credit card to a lower interest rate card. If you do this, immediately destroy the card with the high rate and close the account.
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit card| unsecured credit]] cards on your own.

For those who need assitance managing their credit there are a variety of choices and options out there. In an article by Hispanic magazine, financial author Julie Stav explains what a FICO score is, how credit bureaus calculate it, and steps on ways to improve your score. An article by U.S. News and World Report states the following steps to keep this score manageable:

1.) Pay bills on time.

2.) Pay down debt.

3.) Maintain long-term credit relationships.

4.) Do not apply for too many loans.

A great self-help guide to consider is Repair Your Own Credit which instructs debtors how to repair their credit and how to reestablish credit. It also lists organizations that will either give people free assistance or charge a very low cost to help someone stay out of debt. In NEA Today, they also refer to some credit management agencies such as Equifax as well as warn people about credit repair clinic rip-offs saying they do not do anything that you cannot do yourself. The counselors at Credit Union Magazine suggest that bankruptcy be the last resort in certain circumstances.

==Credit Card Consolidation==
Credit card agencies such as Visa, Discover, MasterCard, and American Express have departments that provide essentially the same services as debt consolidation and debt management companies; however, debt reduction and credit counseling are entirely different functions than what the credit card companies do best. Credit card companies typically prefer their card holders use specialized debt consolidation firms to help with debt consolidation. These firms take on a substantial burden of individual repayment agreements and terms as well as attendant paperwork. MasterCard for example, prefers their card holders use a debt management service. Therefore, Mastercard does not advertise a debt management department within their company. The Mastercard consolidations department will respond to requests for debt consolidation if a written request from the card holder is made to the proper department.

Although trying to set up a debt management plan using services available through the various credit card companies may prove
difficult, the small fees and inconvenience associated with debt management companies may be avoided.

PBS' Frontline aired a comprehensive report on 11/23/04 named [[Debt Relief:Bibliography#Special Report | The History of the Credit Card]]. The report gives an in depth look at the credit card business and common practices unknown to many of us.

When the topic of debt management and relief comes up, consolidation is usually one of the words that follows. Many experts agree that debt consolidation is a good idea when it seems a person is getting too deep in debt. Three things to consider before deciding on debt consolidation:

# Evaluate where you stand with your debts.
# Don't wait until you are in over your head.
# Be sure to understand how debt consolidation truly works.(Morris, 103)

Numerous experts also agree that a nonprofit company is the best way to go for premium terms. Also, no matter if they are for-profit or nonprofit, one should gain as much information as possible about the company before dealing with them. Futhermore, ensuring the institution you choose works with your creditors. Checking their status with the Better Business Bureau is a great idea. (Brown, 326) However, there are many different opinions on how to go about this. One common opinion is that only school loans should be consolidated, and this is only because of the enormous necessity of a college education. (Orman, 149)

==Credit Harrassment==
'''Creditor Harassment: Know Your Rights With Creditors'''.
Are you being harassed by collection agencies? A creditor has the right to contact you when you fall past due on a debt owed to them. However, you have rights if you feel you are being treated unfairly by a debt collector. Your rights are protected under the [[Debt Relief:Fair Debt Collection Act|Fair Debt Collection Act]].

How can you protect yourself from harassment? Asking a collector to stop calling should be effective in most cases. However, a [[Debt Relief:Cease and Desist letter| Cease and Desist letter]] can be sent to third party collection agencies. The Cease and Desist letter will prevent a collection agency from calling you. Once the letter has been received, they may not contact you again except to say there will be no further contact or notify you that a specific action will be taken.

You may not send a cease and desist if the debt is still owned by the original creditor, such as a bank or credit card. Cease and desist letters may only be sent to
a third party, such as a collection agency or attorney.

The Fair Debt Collection Practices Act protects debtors from unfair debt collection processes. The Act ensures you are treated fairly and prohibits certain methods of debt collection. The Collectors (both original and third party agencies) are unable to:
* Harass, oppress, abuse, or publish lists of consumers who refuse payment
* Use profane language
* Repeatedly use the telephone to badger someone
* Give false information
* Imply they are attorneys, government representatives, or work for a credit bureau
* Insinuate you have committed a crime
* Falsely suggest they work for a credit bureau
* Misinterpret the debt amount
* Submit false information about you to anyone (including credit bureaus)
* Indicate sent forms are from the court or government agency when they are not
* Participate in unfair practices when collecting debt
* Obtain amounts greater or less than debt amount (unless state laws permit change)
* Deposit a post-dated check prematurely
* Use deception to make a debtor accept collects calls
* Threaten to take property (unless done legally)

What can you do if the law has been violated? A debtor has the right to sue a collector in a state or federal court within one year from the date of the violation. If a suit is favored by the debtor you may recover money for damages, court and attorney costs, plus an additional amount up to $1,000. A group of debtors can sue and recover funds for damages up to $500,000, or 1% of the collector’s net worth, whichever is less. Any problems or concerns can be reported to your state’s Attorney General’s office, the Federal Trade Commission, and/or the American Collectors Association or local State Bar Association.

Please be advised, that while a creditor may not call and harass you anymore, they still have the right to pursue the debt. However unlikely, they may still file suit in an attempt to collect the debt. Although Cease and Desist is a valuable tool, it should only be used when absolutely necessary.

==Bankruptcy==

'''Bankruptcy''' occurs when the federal system of statues and courts authorize insolvent individuals or businesses the ability to place their financial affairs under the bankruptcy court's control. When the debtor exceeds his or her ability to pay, the debtor may file a petition with the bankruptcy court for voluntary bankruptcy.

There are two types of personal bankruptcy: '''Chapter 7''' and '''Chapter 13'''. Chapter 7 bankruptcy and Chapter 13 bankruptcy are legal proceedings that are available to a person to cope with a financial crisis. Personal bankruptcy must be filed in a federal bankruptcy court. You will have to pay a minimal fee for court and attorney costs.

*'''Chapter 7 bankruptcy:'''involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.

*'''Chapter 13 bankruptcy:'''is a court-ordered and approved repayment plan to your creditors.

The following questions were answered during a telephone interview with Robert M. Matson from the law offices of Akin, Webster, & Matson, PC
Attorney at Law:

1) What is the process of filing for bankruptcy?
* First, we invite all potential clients for a free consultation. Second, upon arriving for a free consultation, we tell the clients to bring in a list of their credits as well as the total amount of income he or she might receive. Finally, after going over the client's credit history and income, we inform the client of the best course of action.
2) How long does filing for bankruptcy stay on your credit report?
* Filing for Chapter 7 bankruptcy stays on your credit report for ten years. Filing for Chapter 13 stays on your creit report for seven years or until you pay off your debt in full.
3) Does filing for bankruptcy make your credit bad?
* Yes, because somewhere in the future for instance let's say you want to take out a loan. If the person you are trying to get a loan from pulls up your credit report and sees that you filed for bankruptcy in the past, this person may think that your are incapable of paying off the loan.
4) How do you determine the fee that you charge clients who file for bankruptcy?
* The fee that clients are charged for filing for bankruptcy depends on the caseload and what type of bankruptcy the client is filing. In Chapter 7 bankruptcy cases the fee is based upon the client's assets. If the client has a large amount of assets, the higher the fee. If the client has a small amount of assets, the lower the fee. In Chapter 13 bankruptcy cases the judge determines the fee.
5) Are they any other forms of bankruptcy besides Chapter 7 and Chapter 13?
*Yes, their is Chapter 11 and Chapter 12 bankruptcy;however, Chapter 7 and Chapter 13 are the two most common forms of filing for individual bankruptcy.
* '''Chapter 11 bankruptcy:''' is the filing of bankruptcy by corporations and some individuals. This form of bankruptcy is rarely filed by individuals because it is rather expensive.
* '''Chapter 12 bankruptcy:''' is the filing of bankruptcy by farmers.
6) What is the difference between filing for Chapter 7 bankruptcy and Chapter 13 bankruptcy besides, the obvious of Chapter 7 being a liquidation of all you assets and Chapter 13 being court-ordered?
* In a '''Chapter 7 bankruptcy''' case the court appoints a trustee to handle the liquidation of your property. The trustee can sell or turn over your property to your creditors. The court then discharges your debts and you will become debt free.
*In a '''Chapter 13 bankruptcy''' case you are allowed to keep your property. This form of bankruptcy allows you to use future income to pay back your debts over a three to five year period. Once you have completed payments under this form of bankruptcy, your debts will be discharged by the court.

Most financial experts agree that bankruptcy should always be the last resort used for managing your debts. Bankruptcy has long lasting results. Filing for bankruptcy remains on your credit report for a period of ten years, making it more difficult to obtain credit in the future.

Bankruptcy is considered to be a "major bomb" in the world of credit. It should be the last resort in most cases for debt relief. Depending on the situation it is sometimes unavoidable.

When selecting a bankruptcy attorney, research his/her background for work experience in this sensitive field of debt relief. There are two types of personal bankruptcies, Chapter thirteen and seven. Corporate bankruptcy is called Chapter eleven and can only be filed by businesses.(Leonard, Attorney Robin "Bankruptcy". Berkley: Nolo Press, 1998). (Credit laws vary from state to state for filing and so does liquidation of assets over a period of time.)

Initially, the person filing will get a sigh of relief from being overwhelmed. Later, credit agencies and other lenders will analyze his/her credit information with a fine tooth comb for at least "ten" years or longer. This a combination of an advantage but a disadvantage to debt relief. Lenders almost immediately view a person as a high - risk for credit due to having bad debt written off through bankruptcies.

Chapter thirteen can be filed in a court with a trustee assigned and is considered a "reorganization" over a period of time to repay debt. The court trustee decides the total amount to be paid back and the time allotted for payment. The person's salary or income determines what will be allowed for the cost of living and the amount that will be disbursed to the creditors. No new debts can be accumulated without the court's permission (i.e., credit cards, loans). Upon closing, obligations are fulfilled and the person can begin on a new credit journey, but the on this new path the person needs to be aware the discharge will remain on the credit report for the next five to seven years.

Chapter seven can be filed in a court and the person will walk away from most of the debt secured and unsecured. The person's salary is freed from the threat of garnishments and being sued by the creditors. The information stays on the credit report for the next ten years and creditors will be view the person as a higher - risk than if the person had filed a Chapter thirteen.

When a person has filed for either bankruptcy it becomes public record information that can be viewed by anyone with acccess to public records documents. Again, bankruptcy needs to be considered as the very last option to debt relief.

==Collection Agencies==

A Collection agency is not the same as a debt counseling service.
Collections agencies are employed by creditors to recover money owed to them.

Creditors wait from six months to two years before turning a bad account over to a collection agency.
There are different reasons why the debtor ends up in collections: poor money management skills, illness, no money to pay, and sometimes the debtor just does not care to repay the debt.

The following information was gathered in an interview with Sandra Harden, Manager of Bibb Collections.

* A collection agency goes after an individual who will not pay a debt. This debt is anything from medical bills to florists bills.
* A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent.
* Bad debt is referred to a collection agency because the debtor has ''poor money management skills, is ill, or has a lack of desire to pay'' what is owed.
*Collection agencies charge a percentage of what is collected as a fee for the service.
*The methods used by credit agencies to collect unpaid accounts are telephone calls to the debtor, [[Debt Relief:Definitions#Sue or suit|lawsuits]], and [[ Debt Relief:Definitions#Garnishee or Garnishment|garnishments]]. Collection agencies will provide a pay plan as well.
*If the debtor does not pay using a pay plan, the collection agency will [[Debt Relief:Definitions#sue or suit|sue]] or [[Debt Relief:Definitions#garnishee|garnishee]] the wages until the debt is settled.

Something to keep in mind: If there is debt, it does not go away if ignored. The best way to manage it is to face it head on and explore options available.

[[Debt Relief:Definitions#Bankruptcy|Bankruptcy]] is recommended by collection agencies if the debt is severe and there are personal reasons for not being able to pay.
Credit counseling is also recommended.

A collection agency is a company that is contacted by the original lender to collect past due and defaulted accounts. (www.spu.edu)

The Federal Trade Commission states that if you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a debtor. If you fall behind in repaying your creditors, you will probably be contacted by a collection agency or a "delinquent debt collector".

Mike Ryan, President of NACM Southeast, wrote an article on "Qualifying Your Collection Agency". You, as an owner in a business have to be careful of what collection agency you choose. You have to ask yourself these questions: What does the agency know about your business? Can you rely on them to handle your accounts honestly, ethically, and effectively? Does the agency understand you may do business with this client again in the future? (Ryan, Mike. 106.8) This is the kind of agency that can legimately collect your money.

The FTC also gives a few tips on a fair debt collection. There is an act that requires that debt collectors treat you fairly and prohibits certain methods of debt collection. This is known as the Fair Debt Collection Practices Act. This does not mean that your debt will just go away. You still have to face this debt head on. This just protects your rights.

You can avoid these agencies all together by simply managing your money right. Self-Help may be the Best Help.

== Project Documents ==

* [[Debt Relief:Proposal | Proposal]]
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]
* [[Debt Relief:Primary Research Results | Primary Research Results]]
* [[Professional Communication]]
* [[Definitions and Common Terms]]

== Resources ==

* [[Debt Relief: Survey SAMPLE|Survey SAMPLE]]
* [[Debt Relief:Bibliography | Bibliography]]

Debt Relief

2004-12-10T03:49:58Z

Fidele72001: /* Introduction */

== Introduction ==
[[Image:Debtrelief.jpg|right|Debt Relief]]
In today's world, debt is almost unavoidable. We have been brainwashed to think that more is better, regardless of what more is. Our society is largely commercialized. We are bombarded with subliminal messages, urging us to buy, buy, and buy; and many of us do just that. We buy without knowing how we are going to pay. We live above our means trying to keep up with the neighbors. The cost of living increases but our income seems to stay the same. It is virtually impossible to avoid getting into debt. In our diverse society, we have one basic commonality: [[Debt Relief:Definitions#Debt| debt]]. Debt can be controlled, but we all need to understand it and learn to avoid too much of it.

The following information is designed to answer questions about debt and offer solutions to control it. Contents range from financial planning to [[Debt Relief:Definitions#debt Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.

==Debt Management==
'''Debt Management''' is the process by which debts are consolidated into one '''lower monthly payment'''. This '''one payment''' will be an amount which the client '''can afford''', and will be apportioned amongst their creditors. Payments to creditors will be made on the client's behalf. An [[Debt Relief: Interview#Interview | Interview]] was done with a local agency on debt management.

Credit counseling and debt management agencies give professional help to individuals who need assistance paying off debts. These agencies look at the client's debts, listen to needs, make recommendations, and create budgets. These companies have received bad press in the past, do research before selecting one. Make sure it is accredited with an institution, such as the Better Business Bureau. A debtor must also make sure to look at state laws, so that he/she is not overcharged for financial help.

The steps most of these agencies take to help debtors eliminate debt are:

1) They help debtors to assess his/her debt situation.

2) Avoiding overspending and handling existing debts are other areas consultants help debtors with.

3) The final steps are helping the client to build and maintain good credit.

Most financial advisors agree that the most important step a person must take before seeking counsel is to change his/her money management skills. The debtor must change the way he thinks. The debtor must get rid himself of all financial anxieties or debt will probably happen again.

==Managing Your Credit==
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as [[Debt Relief:Bibliography#Experian | Experian]], [[Debt Relief:Bibliography#Trans Union | Trans Union]], and [[Debt Relief:Bibliography#Equifax | Equifax]]. Whether your credit is good or bad is determined by your [[Debt Relief:Definitions#Beacon or credit score |Beacon or credit score]]. If your score is low, you are considered "high risk" and chances are your request for credit will be denied. The higher your credit score, the more likely you will receive approval. Each time you apply for credit, your score drops. If your credit score is low, there are steps you can take to help manage your credit and increase your score.

*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in your checking account.
*Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''.
*Do not use your credit cards to purchase food. You will pay 10 times more in interest than what one meal would have cost if you had paid cash.
*If possible, consider transferring the balance of your credit card to a lower interest rate card. If you do this, immediately destroy the card with the high rate and close the account.
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit card| unsecured credit]] cards on your own.

For those who need assitance managing their credit there are a variety of choices and options out there. In an article by Hispanic magazine, financial author Julie Stav explains what a FICO score is, how credit bureaus calculate it, and steps on ways to improve your score. An article by U.S. News and World Report states the following steps to keep this score manageable:

1.) Pay bills on time.

2.) Pay down debt.

3.) Maintain long-term credit relationships.

4.) Do not apply for too many loans.

A great self-help guide to consider is Repair Your Own Credit which instructs debtors how to repair their credit and how to reestablish credit. It also lists organizations that will either give people free assistance or charge a very low cost to help someone stay out of debt. In NEA Today, they also refer to some credit management agencies such as Equifax as well as warn people about credit repair clinic rip-offs saying they do not do anything that you cannot do yourself. The counselors at Credit Union Magazine suggest that bankruptcy be the last resort in certain circumstances.

==Credit Card Consolidation==
Credit card agencies such as Visa, Discover, MasterCard, and American Express have departments that provide essentially the same services as debt consolidation and debt management companies; however, debt reduction and credit counseling are entirely different functions than what the credit card companies do best. Credit card companies typically prefer their card holders use specialized debt consolidation firms to help with debt consolidation. These firms take on a substantial burden of individual repayment agreements and terms as well as attendant paperwork. MasterCard for example, prefers their card holders use a debt management service. Therefore, Mastercard does not advertise a debt management department within their company. The Mastercard consolidations department will respond to requests for debt consolidation if a written request from the card holder is made to the proper department.

Although trying to set up a debt management plan using services available through the various credit card companies may prove
difficult, the small fees and inconvenience associated with debt management companies may be avoided.

PBS' Frontline aired a comprehensive report on 11/23/04 named [[Debt Relief:Bibliography#Special Report | The History of the Credit Card]]. The report gives an in depth look at the credit card business and common practices unknown to many of us.

When the topic of debt management and relief comes up, consolidation is usually one of the words that follows. Many experts agree that debt consolidation is a good idea when it seems a person is getting too deep in debt. Three things to consider before deciding on debt consolidation:

# Evaluate where you stand with your debts.
# Don't wait until you are in over your head.
# Be sure to understand how debt consolidation truly works.(Morris, 103)

Numerous experts also agree that a nonprofit company is the best way to go for premium terms. Also, no matter if they are for-profit or nonprofit, one should gain as much information as possible about the company before dealing with them. Futhermore, ensuring the institution you choose works with your creditors. Checking their status with the Better Business Bureau is a great idea. (Brown, 326) However, there are many different opinions on how to go about this. One common opinion is that only school loans should be consolidated, and this is only because of the enormous necessity of a college education. (Orman, 149)

==Credit Harrassment==
'''Creditor Harassment: Know Your Rights With Creditors'''.
Are you being harassed by collection agencies? A creditor has the right to contact you when you fall past due on a debt owed to them. However, you have rights if you feel you are being treated unfairly by a debt collector. Your rights are protected under the [[Debt Relief:Fair Debt Collection Act|Fair Debt Collection Act]].

How can you protect yourself from harassment? Asking a collector to stop calling should be effective in most cases. However, a [[Debt Relief:Cease and Desist letter| Cease and Desist letter]] can be sent to third party collection agencies. The Cease and Desist letter will prevent a collection agency from calling you. Once the letter has been received, they may not contact you again except to say there will be no further contact or notify you that a specific action will be taken.

You may not send a cease and desist if the debt is still owned by the original creditor, such as a bank or credit card. Cease and desist letters may only be sent to
a third party, such as a collection agency or attorney.

The Fair Debt Collection Practices Act protects debtors from unfair debt collection processes. The Act ensures you are treated fairly and prohibits certain methods of debt collection. The Collectors (both original and third party agencies) are unable to:
* Harass, oppress, abuse, or publish lists of consumers who refuse payment
* Use profane language
* Repeatedly use the telephone to badger someone
* Give false information
* Imply they are attorneys, government representatives, or work for a credit bureau
* Insinuate you have committed a crime
* Falsely suggest they work for a credit bureau
* Misinterpret the debt amount
* Submit false information about you to anyone (including credit bureaus)
* Indicate sent forms are from the court or government agency when they are not
* Participate in unfair practices when collecting debt
* Obtain amounts greater or less than debt amount (unless state laws permit change)
* Deposit a post-dated check prematurely
* Use deception to make a debtor accept collects calls
* Threaten to take property (unless done legally)

What can you do if the law has been violated? A debtor has the right to sue a collector in a state or federal court within one year from the date of the violation. If a suit is favored by the debtor you may recover money for damages, court and attorney costs, plus an additional amount up to $1,000. A group of debtors can sue and recover funds for damages up to $500,000, or 1% of the collector’s net worth, whichever is less. Any problems or concerns can be reported to your state’s Attorney General’s office, the Federal Trade Commission, and/or the American Collectors Association or local State Bar Association.

Please be advised, that while a creditor may not call and harass you anymore, they still have the right to pursue the debt. However unlikely, they may still file suit in an attempt to collect the debt. Although Cease and Desist is a valuable tool, it should only be used when absolutely necessary.

==Bankruptcy==

'''Bankruptcy''' occurs when the federal system of statues and courts authorize insolvent individuals or businesses the ability to place their financial affairs under the bankruptcy court's control. When the debtor exceeds his or her ability to pay, the debtor may file a petition with the bankruptcy court for voluntary bankruptcy.

There are two types of personal bankruptcy: '''Chapter 7''' and '''Chapter 13'''. Chapter 7 bankruptcy and Chapter 13 bankruptcy are legal proceedings that are available to a person to cope with a financial crisis. Personal bankruptcy must be filed in a federal bankruptcy court. You will have to pay a minimal fee for court and attorney costs.

*'''Chapter 7 bankruptcy:'''involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.

*'''Chapter 13 bankruptcy:'''is a court-ordered and approved repayment plan to your creditors.

The following questions were answered during a telephone interview with Robert M. Matson from the law offices of Akin, Webster, & Matson, PC
Attorney at Law:

1) What is the process of filing for bankruptcy?
* First, we invite all potential clients for a free consultation. Second, upon arriving for a free consultation, we tell the clients to bring in a list of their credits as well as the total amount of income he or she might receive. Finally, after going over the client's credit history and income, we inform the client of the best course of action.
2) How long does filing for bankruptcy stay on your credit report?
* Filing for Chapter 7 bankruptcy stays on your credit report for ten years. Filing for Chapter 13 stays on your creit report for seven years or until you pay off your debt in full.
3) Does filing for bankruptcy make your credit bad?
* Yes, because somewhere in the future for instance let's say you want to take out a loan. If the person you are trying to get a loan from pulls up your credit report and sees that you filed for bankruptcy in the past, this person may think that your are incapable of paying off the loan.
4) How do you determine the fee that you charge clients who file for bankruptcy?
* The fee that clients are charged for filing for bankruptcy depends on the caseload and what type of bankruptcy the client is filing. In Chapter 7 bankruptcy cases the fee is based upon the client's assets. If the client has a large amount of assets, the higher the fee. If the client has a small amount of assets, the lower the fee. In Chapter 13 bankruptcy cases the judge determines the fee.
5) Are they any other forms of bankruptcy besides Chapter 7 and Chapter 13?
*Yes, their is Chapter 11 and Chapter 12 bankruptcy;however, Chapter 7 and Chapter 13 are the two most common forms of filing for individual bankruptcy.
* '''Chapter 11 bankruptcy:''' is the filing of bankruptcy by corporations and some individuals. This form of bankruptcy is rarely filed by individuals because it is rather expensive.
* '''Chapter 12 bankruptcy:''' is the filing of bankruptcy by farmers.
6) What is the difference between filing for Chapter 7 bankruptcy and Chapter 13 bankruptcy besides, the obvious of Chapter 7 being a liquidation of all you assets and Chapter 13 being court-ordered?
* In a '''Chapter 7 bankruptcy''' case the court appoints a trustee to handle the liquidation of your property. The trustee can sell or turn over your property to your creditors. The court then discharges your debts and you will become debt free.
*In a '''Chapter 13 bankruptcy''' case you are allowed to keep your property. This form of bankruptcy allows you to use future income to pay back your debts over a three to five year period. Once you have completed payments under this form of bankruptcy, your debts will be discharged by the court.

Most financial experts agree that bankruptcy should always be the last resort used for managing your debts. Bankruptcy has long lasting results. Filing for bankruptcy remains on your credit report for a period of ten years, making it more difficult to obtain credit in the future.

Bankruptcy is considered to be a "major bomb" in the world of credit. It should be the last resort in most cases for debt relief. Depending on the situation it is sometimes unavoidable.

When selecting a bankruptcy attorney, research his/her background for work experience in this sensitive field of debt relief. There are two types of personal bankruptcies, Chapter thirteen and seven. Corporate bankruptcy is called Chapter eleven and can only be filed by businesses.(Leonard, Attorney Robin "Bankruptcy". Berkley: Nolo Press, 1998). (Credit laws vary from state to state for filing and so does liquidation of assets over a period of time.)

Initially, the person filing will get a sigh of relief from being overwhelmed. Later, credit agencies and other lenders will analyze his/her credit information with a fine tooth comb for at least "ten" years or longer. This a combination of an advantage but a disadvantage to debt relief. Lenders almost immediately view a person as a high - risk for credit due to having bad debt written off through bankruptcies.

Chapter thirteen can be filed in a court with a trustee assigned and is considered a "reorganization" over a period of time to repay debt. The court trustee decides the total amount to be paid back and the time allotted for payment. The person's salary or income determines what will be allowed for the cost of living and the amount that will be disbursed to the creditors. No new debts can be accumulated without the court's permission (i.e., credit cards, loans). Upon closing, obligations are fulfilled and the person can begin on a new credit journey, but the on this new path the person needs to be aware the discharge will remain on the credit report for the next five to seven years.

Chapter seven can be filed in a court and the person will walk away from most of the debt secured and unsecured. The person's salary is freed from the threat of garnishments and being sued by the creditors. The information stays on the credit report for the next ten years and creditors will be view the person as a higher - risk than if the person had filed a Chapter thirteen.

When a person has filed for either bankruptcy it becomes public record information that can be viewed by anyone with acccess to public records documents. Again, bankruptcy needs to be considered as the very last option to debt relief.

==Collection Agencies==

A Collection agency is not the same as a debt counseling service.
Collections agencies are employed by creditors to recover money owed to them.

Creditors wait from six months to two years before turning a bad account over to a collection agency.
There are different reasons why the debtor ends up in collections: poor money management skills, illness, no money to pay, and sometimes the debtor just does not care to repay the debt.

The following information was gathered in an interview with Sandra Harden, Manager of Bibb Collections.

* A collection agency goes after an individual who will not pay a debt. This debt is anything from medical bills to florists bills.
* A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent.
* Bad debt is referred to a collection agency because the debtor has ''poor money management skills, is ill, or has a lack of desire to pay'' what is owed.
*Collection agencies charge a percentage of what is collected as a fee for the service.
*The methods used by credit agencies to collect unpaid accounts are telephone calls to the debtor, [[Debt Relief:Definitions#Sue or suit|lawsuits]], and [[ Debt Relief:Definitions#Garnishee or Garnishment|garnishments]]. Collection agencies will provide a pay plan as well.
*If the debtor does not pay using a pay plan, the collection agency will [[Debt Relief:Definitions#sue or suit|sue]] or [[Debt Relief:Definitions#garnishee|garnishee]] the wages until the debt is settled.

Something to keep in mind: If there is debt, it does not go away if ignored. The best way to manage it is to face it head on and explore options available.

[[Debt Relief:Definitions#Bankruptcy|Bankruptcy]] is recommended by collection agencies if the debt is severe and there are personal reasons for not being able to pay.
Credit counseling is also recommended.

A collection agency is a company that is contacted by the original lender to collect past due and defaulted accounts. (www.spu.edu)

The Federal Trade Commission states that if you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a debtor. If you fall behind in repaying your creditors, you will probably be contacted by a collection agency or a "delinquent debt collector".

Mike Ryan, President of NACM Southeast, wrote an article on "Qualifying Your Collection Agency". You, as an owner in a business have to be careful of what collection agency you choose. You have to ask yourself these questions: What does the agency know about your business? Can you rely on them to handle your accounts honestly, ethically, and effectively? Does the agency understand you may do business with this client again in the future? (Ryan, Mike. 106.8) This is the kind of agency that can legimately collect your money.

The FTC also gives a few tips on a fair debt collection. There is an act that requires that debt collectors treat you fairly and prohibits certain methods of debt collection. This is known as the Fair Debt Collection Practices Act. This does not mean that your debt will just go away. You still have to face this debt head on. This just protects your rights.

You can avoid these agencies all together by simply managing your money right. Self-Help may be the Best Help.

== Project Documents ==

* [[Debt Relief:Proposal | Proposal]]
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]
* [[Debt Relief:Primary Research Results | Primary Research Results]]
* [[Professional Communication]]
* [[Definitions and Common Terms]]

== Resources ==

* [[Debt Relief: Survey SAMPLE|Survey SAMPLE]]
* [[Debt Relief:Bibliography | Bibliography]]

User:Fidele72001

2004-12-03T01:02:03Z

Fidele72001:

Hello, my name is Marie Fidele. My dream is to one day marry Usher(the singer), if his willing (I don't care if his not). If anyone knows where he lives in ATL please tell me.
I'm not obssesed, I'm just persistant.

December 02, 2004

Subject: HOW ENGLISH 3106 HAVE HELPED ME

I have never been a strong writer mainly because I neglect to do the thing most writers like Stephen King say is the most important thing to do, proofread. I find that besides procrastination, proofreading what I have written is my biggest problem with teachers and even myself. I know it must be done but it feels like a hurdle and I find when I do it I get embarrassed at my stupid mistakes and wonder even more about my writing and grammar abilities. It often makes me feel inadequate and I hate to feeling without, it is like being empty. Yet, I find more and more I cannot ignore my writing it is like creating a painting and not stepping back to look at the wonders of it.

I took this class with all the purpose and intentions of improving my professional communication writing skills. I needed to improve my writing skills when communicating with people because I found that I did not know how to write a professional letter. Although all my life I have had nothing but office jobs, I still lacked the skills needed to communicate to others through words. Yet this fact did not bother me until I started looking for professional work- jobs that need a professional resume instead of just filing a personal form. I find no matter how hard I concentrated on my resumes I still could not find a good paying professional part-time job. I was concerned and so I sought out the help of a councilor in the Career Center of the school's campus. They trained me on the art of resume writing and how to be professional. I still knew I had a lot to learn and I looked in the student's holy book-MSC Student Catalogue- to see if my major offered one of those classes as one of its course. They did and I was elated because I really knew this would be helpful to me now. I needed to learn how to get a good job right away.

"Your resume is not at all professional," is what I heard on the day I went to get help with my resume at the Career Center. I felt crushed by the statement because it was as if being told by someone that you have no class. I got over it though and realized I had to improve on this part of my education before I graduated and realize that I still have inadequacies I should have settled in college. So I try to learn all I can about writing since it is a big part of my major as a CIT student.

In this class, I have learned a completely new method of writing and rules that I did not even know before then. The book helped a lot but I always find it more useful to get feedback and more information from a teacher. I did learn more than I expected from this class and was glad when told better and different ways to do things aside from what the writer wrote in the book. I also learned how ignorant I was and am glad to be less ignorant of these particular subjects.
I have to say that this class has been super helpful to me. I will be using what I have learned to get myself a job to pay the bills while I am still in school. I have attained more information in a short time than I have ever had and I would not change a thing about this course except for working on the webpage-I am a computer phobic and this is another issue to deal with too. However, keep up the great work of teaching this course Pr. Lucas, to ignorant bastards like myself who are glad to have learned a bit more about another type of writing- as if to say wow! There you can write differently-my English Comp teacher has a lot to answer for.

Debt Relief

2004-11-24T00:00:42Z

Fidele72001: /* Introduction */

User talk:Fidele72001

2004-11-12T19:06:54Z

Fidele72001:

[[Debt Relief|Hold on Survey]]
November 11, 2004

Dear Group Classmates,

I went to Dean McCranney with the proposal to pass out the surveys but she informed me that I would have to go to Andy Clark, Director of Institutional Research. She told me once I had completed this task that she would provide assistance to setting up spaces and use her resources for our purpose.
I went to see Mr. Clark soon after- also erasing Dean McCranney’s name on the proposal and attaching his instead-and left the proposal letter and survey questions with his secretary because he was not in to see me. She told me I should receive a response from him via mail or telephone by Monday or so after the committee has approved it. I will write this information on the litwiki for everyone to see.
Although this is an unfortunate setback this does not slow us down. We will receive word before next Tuesday and if we keep collecting data till the spill of following week that will not be a problem. We just need to organize it at a quicker pace afterwards. I have confidence that we will be able to do it. Keep in good faith of our abilities.

Sincerely

Marie Fidele

P.S. Coordinators if this is to affect our grades please inform Dr. Lucas of this minor delay and tell him it was way beyond our control. We did not know we had to go through other channels to get approval and we are doing our best to correct this slight misunderstanding.

Debt Relief:Primary Research Proposal

2004-11-10T23:28:26Z

Fidele72001:

Nov 4, 2004

Dear Dean Lynn McCraney,

The English 3106 class requests permission to conduct a survey involving students on the MSC campus. The class project is building a web site that will provide information pertaining to ''debt relief''. The survey we hope to distribute will ask questions about debt from the students point of view. Personal information will not be gathered. Once the data is gathered, the information will be posted along with other information the class has compiled. The web site can be accessed by anyone researching debt relief.

'''Background and Goals'''
Diversity in the student population will allow us to gather beneficial information.

We hope to:
* Survey 200 students
* Advise students to check site when it is completed

To accomplish these goals we would like to conduct the survey on between November 16th and 23rd. We will need to set up tables in areas, being careful to avoid creating congestion.

Survey will consist of the following questions: Will be a short questionnaire dealing with debt relief, such as: status, age, financial category, goal or desires.

'''Analysis.''' Survey information will be categorized into groups.We will use the two hundred surveys responses to get statistics on the seperated groups.

To view the final draft of our project which will be posted on the last week of this semester, you can visit: <http://litmuse.maconstate.edu>.

Sincerely,

Marie Julie D. Fidele
Fall class of English 3106

Debt Relief:Bibliography

2004-11-10T00:55:46Z

Fidele72001: /* Articles */

This is currently a working bibliography. Please be consistent; when in doubt, follow the format of what is already posted. All print resources should use [[What is MLA documentation style? | MLA Documentation Style]].

== Web Resources ==

=== Articles ===
* [http://www.ezinearticles.com/?Dont-Wait-For-The-Perfect-Situation-To-Pay-Down-Your-Debt&id=4895/ Don't Wait For The Perfect Situation To Pay Down Your Debt] - Article that encompasses why procrastination can lead to larger problems when dealing with debt.

=== Blogs ===
* [http://finance.baylor.edu/weblogs/garven/ Jim Garven’s Blog] — A blog exploring the intersection of risk management, insurance, and finance.

=== Credit Reporting Agencies ===
View your credit report.
* [http://www.transunion.com/ TransUnion] - Credit reporting agency
* [http://www.equifax.com/ Equifax] - Credit reporting agency
* [http://www.experian.com/ Experian] - Credit reporting agency

=== Self Help ===
* [http://www.debtattack.com/ Debt Attack] - Extensive information on good and bad debt and ways to get out of debt.
* [http://www.debtsteps.com/ Debt Steps] — Comprehensive reviews to help you protect your financial future.
* [http://www.sorted.org.nz/managing-debt/ Managing Debt] — Learn what debt means for your overall financial situation and how you can control debt, and avoid it controlling you.
* [http://www.ftc.gov/bcp/conline/pubs/credit/repair.htm Credit Repair: Self-Help May Be Best] — Only time, a conscious effort, and a personal debt repayment plan will improve your credit report.
*[http://consumer-debt-consolidation.com/ Debt Consolidation Help]- Consolidate your debt into one payment.
* [http://money.cnn.com/pf/101/lessons/9/index.html/ Controlling Debt] - CNN and Money Magazine break down the top things to know about debt.
* [http://www.usaweekend.com/99_issues/990822/990822finance.html/ Good debt vs. bad] - USA Weekend Magazine establishes some borrowing guidelines to avoid bad debt.
*[http://promise.ecol.net/finance/bankrupt.htm Bankruptcy and Restructuring Debt] - Gives advice on the advantages and disadvantages of bankrutcy and restructuring debt.
*[http://creditinfocenter.com/debt/settle_debts.shtml/ Settling Debts] - Learn ways to settle debts including dealing with creditors
*[http://creditinfocenter.com/loans/studentloans.shtml/ Student Loans] - Find info on student loans from different types to advice on when you default on your loan.
*[http://www.pueblo.gsa.gov/cic_text/money/credit-record/t_crrecord.htm/Building A Better Credit Record]-Gives information on consumer reporting agencies, ways of improving and dealing with debt, and avoiding scams from agencies who provide help in solving debt.
*[http://www.pueblo.gsa.gov/cic_text/money/managing-debt/mangdebt.htm/ Managing Your Debts: How to Regain Financial Health]-Provides you with some remedies for your relationships with creditors, reducing your debts,and helping you manage your money.
*[http://www.edebtfree.org/ccc.htm/ Credit Counseling]-Provides you with information on credit counseling.
*[http://www.edebtfree.org/consolidation.htm Debt consolidation loans]-Provides you with information on debt consolidation.
*[http://www.debtsteps.com/consolidat-debts.html Should you consolidate your debts?]-Provides you with information on choosing between borrowing money to pay off your debt or consulting a consumer credit counseling service

=== Statistics ===
* [http://www.ezinearticles.com/?The-Effects-of-Consumer-Debt&id=5211/ Effects of Consumer Debt] - Statistical information on debt and how it affects the average consumer.

== Print Resources ==
=== Articles ===
* Allen, Mary and Chantal Vaillancourt. “Class of 2000: Student Loans.” ''Canadian Social Trends'' 74 (2004): 18.
*Hynes, Richard M. "Overoptimism and Overborrowing." ''Bringham Young University Law Review''2004.1 (2004): 127.
* Rowland, Mary. "Good Credit gone Bad?" ''NEA Today'' 16.5 (Jan 1998): 38.
*Sandberg, Erica. "The Value of Financial Planning and Debt Reduction Services for Employees and Employers." ''Employee Benefits Journal'' 27.4 (2002): 37.

=== Books ===
* McNaughton, Debra. ''All About Credit''. Chicago: Dearborn, 1999.
* Hammond, Bob. "Life Without Debt." New Jersey: Career Press, 1995.
* Leonard, Attorney Robin. "Bankruptcy." Berkley: Nolo Press, 1998.
* Fisher, Sarah Young. "The Complete Idiots Guide To Personal Finance In Your 20's and 30's." Indianapolis: Alpha, 2002.

----

[[Debt Relief]]

Debt Relief:Bibliography

2004-11-09T19:43:23Z

Fidele72001: /* Articles */

This is currently a working bibliography. Please be consistent; when in doubt, follow the format of what is already posted. All print resources should use [[What is MLA documentation style? | MLA Documentation Style]].

== Web Resources ==
=== Articles ===

Bullimore, Nicola. "The Effects of Consumer Debt" 04 November 2004. 7 November 2004 http://www.ezinearticles.com/?The-Effects-of-Consumer-Debt&id=5211

Wilding, David."Don't Wait For The Perfect Situation To Pay Down Your Debt" 28 October 2004. 7 November 2004 http://www.ezinearticles.com/?Dont-Wait-For-The-Perfect-Situation-To-Pay-Down-Your-Debt&id=4895

''These articles were taken from Galileo and also of the Proquest link in that same site. They deal with how to eliminate debt, laws regarding nonprofit financial-counseling companies, and other forms of credit management.''

Hayes, Richard M. "Overoptimism and Overborrowing" Brigham Young University Law Review.Provo:2004.Vol.2004,Iss.1;pg.127,42pgs
http://proquest.umi.com/pqdweb?index=4&TS=1099961626&sid=37srchmode=1&vinst=...

Jean, Chatzy & Bigda, Carolyn. "Weapons Of Mass Debt Destruction" Money; Sep. 2004, Vol.33 Issue 9, p57, 1p, 1c
http://web30.epnet.com/citation.asp?tb=1&_ug=sid+4EAA7F82%2D0382%D4557%2D9363%2DF57B...

Jean, Chatzy. "Which Debts Do You Attack First?" Money; Nov. 2004, Vol.33 Issue 11, p71, 1p, 1c
http://web30.epnet.com/citation.asp?tb=1&_ug=sid+4EAA7F82%2D0382%D4557%2D9363%2DF57B...

Shean, Tom. "Virginia Bill Would Allow Debt Counselors To RAise Fees" Knight Ridder Tribune Business News.Washington:Mar 1,2004. pg.1
http://proquest.umi.com/pqbweb?index=3&did=000000566566991&SrchMode=1&sid=3...

=== Blogs ===
* [http://finance.baylor.edu/weblogs/garven/ Jim Garven’s Blog] — A blog exploring the intersection of risk management, insurance, and finance.

=== Self Help ===
* [http://www.debtsteps.com/ Debt Steps] — Comprehensive reviews to help you protect your financial future.
* [http://www.sorted.org.nz/managing-debt/ Managing Debt] — Learn what debt means for your overall financial situation and how you can control debt, and avoid it controlling you.
* [http://www.ftc.gov/bcp/conline/pubs/credit/repair.htm Credit Repair: Self-Help May Be Best] — Only time, a conscious effort, and a personal debt repayment plan will improve your credit report.
*[http://consumer-debt-consolidation.com/ Debt Consolidation Help]- Consolidate your debt into one payment.
* [http://money.cnn.com/pf/101/lessons/9/index.html/ Controlling Debt] - CNN and Money Magazine break down the top things to know about debt.
* [http://www.usaweekend.com/99_issues/990822/990822finance.html/ Good debt vs. bad] - USA Weekend Magazine establishes some borrowing guidelines to avoid bad debt.
*[http://promise.ecol.net/finance/bankrupt.htm Bankruptcy and Restructuring Debt] - Gives advice on the advantages and disadvantages of bankrutcy and restructuring debt.
*[http://creditinfocenter.com/debt/settle_debts.shtml/ Settling Debts] - Learn ways to settle debts including dealing with creditors
*[http://creditinfocenter.com/loans/studentloans.shtml/ Student Loans] - Find info on student loans from different types to advice on when you default on your loan.
*[http://www.pueblo.gsa.gov/cic_text/money/credit-record/t_crrecord.htm/Building A Better Credit Record]-Gives information on consumer reporting agencies, ways of improving and dealing with debt, and avoiding scams from agencies who provide help in solving debt.
*[http://www.pueblo.gsa.gov/cic_text/money/managing-debt/mangdebt.htm/ Managing Your Debts: How to Regain Financial Health]-Provides you with some remedies for your relationships with creditors, reducing your debts,and helping you manage your money.

=== Statistics ===

== Print Resources ==
=== Articles ===
* Allen, Mary and Chantal Vaillancourt. “Class of 2000: Student Loans.” ''Canadian Social Trends'' 74 (2004): 18.
* Rowland, Mary. "Good Credit gone Bad?" NEA Today Jan 1998, vol. 16 Issue 5, p38.

=== Books ===
* McNaughton, Debra. ''All About Credit''. Chicago: Dearborn, 1999.

----

[[Debt Relief]]

Debt Relief:Bibliography

2004-11-09T19:28:23Z

Fidele72001: /* Articles */

This is currently a working bibliography. Please be consistent; when in doubt, follow the format of what is already posted. All print resources should use [[What is MLA documentation style? | MLA Documentation Style]].

== Web Resources ==
=== Articles ===

Bullimore, Nicola. "The Effects of Consumer Debt" 04 November 2004. 7 November 2004 http://www.ezinearticles.com/?The-Effects-of-Consumer-Debt&id=5211

Wilding, David."Don't Wait For The Perfect Situation To Pay Down Your Debt" 28 October 2004. 7 November 2004 http://www.ezinearticles.com/?Dont-Wait-For-The-Perfect-Situation-To-Pay-Down-Your-Debt&id=4895

These articles were taken from Galileo and also of the Proquest link in that same site. They ddeal with how to eliminate debt, laws regarding nonprofit financial-counseling companies, and other forms of credit management.

Hayes, Richard M. "Overoptimism and Overborrowing" Brigham Young University Law Review.Provo:2004.Vol.2004,Iss.1;pg.127,42pgs

=== Blogs ===
* [http://finance.baylor.edu/weblogs/garven/ Jim Garven’s Blog] — A blog exploring the intersection of risk management, insurance, and finance.

=== Self Help ===
* [http://www.debtsteps.com/ Debt Steps] — Comprehensive reviews to help you protect your financial future.
* [http://www.sorted.org.nz/managing-debt/ Managing Debt] — Learn what debt means for your overall financial situation and how you can control debt, and avoid it controlling you.
* [http://www.ftc.gov/bcp/conline/pubs/credit/repair.htm Credit Repair: Self-Help May Be Best] — Only time, a conscious effort, and a personal debt repayment plan will improve your credit report.
*[http://consumer-debt-consolidation.com/ Debt Consolidation Help]- Consolidate your debt into one payment.
* [http://money.cnn.com/pf/101/lessons/9/index.html/ Controlling Debt] - CNN and Money Magazine break down the top things to know about debt.
* [http://www.usaweekend.com/99_issues/990822/990822finance.html/ Good debt vs. bad] - USA Weekend Magazine establishes some borrowing guidelines to avoid bad debt.
*[http://promise.ecol.net/finance/bankrupt.htm Bankruptcy and Restructuring Debt] - Gives advice on the advantages and disadvantages of bankrutcy and restructuring debt.
*[http://creditinfocenter.com/debt/settle_debts.shtml/ Settling Debts] - Learn ways to settle debts including dealing with creditors
*[http://creditinfocenter.com/loans/studentloans.shtml/ Student Loans] - Find info on student loans from different types to advice on when you default on your loan.
*[http://www.pueblo.gsa.gov/cic_text/money/credit-record/t_crrecord.htm/Building A Better Credit Record]-Gives information on consumer reporting agencies, ways of improving and dealing with debt, and avoiding scams from agencies who provide help in solving debt.
*[http://www.pueblo.gsa.gov/cic_text/money/managing-debt/mangdebt.htm/ Managing Your Debts: How to Regain Financial Health]-Provides you with some remedies for your relationships with creditors, reducing your debts,and helping you manage your money.
=== Statistics ===

== Print Resources ==
=== Articles ===
* Allen, Mary and Chantal Vaillancourt. “Class of 2000: Student Loans.” ''Canadian Social Trends'' 74 (2004): 18.
* Rowland, Mary. "Good Credit gone Bad?" NEA Today Jan 1998, vol. 16 Issue 5, p38.

=== Books ===
* McNaughton, Debra. ''All About Credit''. Chicago: Dearborn, 1999.

----

[[Debt Relief]]

Debt Relief:Primary Research Proposal

2004-11-04T19:41:33Z

Fidele72001:

Nov 4, 2004

Dear Dean Lynn McCraney,

Iam writing to request permission for my classmates and I in English 31206, Pr. Lucas'class, to get permission from you to survey students on campus for a class project. The subject will deal with debt relief and the survey will contain questions dealing on that matter from a student's point of view. Once this it is completed it will be posted on the class website and will be accessible to students as refrence or research information on this particular subject.

'''Background and Goals'''
We know that people have different financial backgrounds and with a college as diverse as Macon State College we are sure to obtain information that will be beneficial to this project. Our goals are to:
* Collect up two-hundred surveys
* Advise students to check site when it is completed

To accomplish these goals we will pass out surveys to students and set up desks in non-traffic causing areas in the campus buildings for the next week and a half.

Survey. Will be a short questionnaire dealing with debt relief, such as: status, age, financial category, goal or desires.

'''Analysis.''' Survey information will be categorized into groups.We will use the two hundred surveys responses to get statistics on the seperated groups.

To view the final draft of our project which will be posted on the final week of this semester, you can visit: <http://litmuse.maconstate.edu>.

Sincerely,

Marie Julie D. Fidele

Fall class of English 3106

Debt Relief:Primary Research Proposal

2004-11-04T02:52:04Z

Fidele72001:

October 27, 2004

Dear Dean Lynn McCraney,

Iam writing to request permission for my classmates and I in English 31206, Pr. Lucas'class, to get permission from you to survey students on campus for a class project. The subject will deal with debt relief and the survey will contain questions dealing on that matter from a student's point of view. Once this it is completed it will be posted on the class website and will be accessible to students as refrence or research information on this particular subject.

'''Background and Goals'''
We know that people have different financial backgrounds and with a college as diverse as Macon State College we are sure to obtain information that will be beneficial to this project. Our goals are to:
* Collect up two-hundred surveys
* Advise students to check site when it is completed

To accomplish these goals we will pass out surveys to students and set up desks in non-traffic causing areas in the campus buildings for the next week and a half.

Survey. Will be a short questionnaire dealing with debt relief, such as: status, age, financial category, goal or desires.

'''Analysis.''' Survey information will be categorized into groups.We will use the two hundred surveys responses to get statistics on the seperated groups.

To view the final draft of our project which will be posted on the final week of this semester, you can visit: <http://litmuse.maconstate.edu>.

Sincerely,

Marie Julie D. Fidele

Fall class of English 3106

Debt Relief:Primary Research Proposal

2004-11-04T02:46:47Z

Fidele72001:

October 27, 2004

Dear Dean Lynn McCraney,

Iam writing to request permission for my classmates and I in English 31206, Pr. Lucas'class, to get permission from you to survey students on campus for a class project. The subject will dealwith with debt relief and the survey will contain questions dealing on that matter from a student's point of view. One this is completed it willbe posted on the class website and willbe accessible to students as refrence or research information on this particular subject.

'''Background and Goals'''
We know that people have different financial backgrounds and with a college as diverse as Macon State College we are sure toobtain information that will beneficial to this project. Our goals are to:
* Collect up two-hundred surveys
* Advise students to check site when it is completed

To accomplish these goals we will pass out surveys to students and set up desk in non-traffic causing areas in the campus buildings for the next week and a half.

Survey. Will be a short questionnaire dealing with debt relief, such as: status, age, financial category, goal or desires.

'''Analysis.''' Survey information will be categorized into groups.We will use the two hundred surveys response to get statistics on the seperated groups.

To view the final draft of our project which will be posted on the final weekof this semester, you can visit: <http://litmuse.maconstate.edu>

Sincerely,

Marie Julie D. Fidele

Fall class of English 3106

Debt Relief:Primary Research Proposal

2004-11-04T02:45:30Z

Fidele72001:

October 27, 2004

Dear Dean Lynn McCraney,

Iam writing to request permission for my classmates and I in English 31206, Pr. Lucas'class, to get permission from you to survey students on campus for a class project. The subject will dealwith with debt relief and the survey will contain questions dealing on that matter from a student's point of view. One this is completed it willbe posted on the class website and willbe accessible to students as refrence or research information on this particular subject.

'''Background and Goals'''
We know that people have different financial backgrounds and with a college as diverse as Macon State College we are sure toobtain information that will beneficial to this project. Our goals are to:
* Collect up two-hundred surveys
* Advise students to check site when it is completed

To accomplish these goals we will pass out surveys to students and set up desk in non-traffic causing areas in the campus buildings for the next week and a half.

Survey. Will be a short questionnaire dealing with debt relief, such as: status, age, financial category, goal or desires.

'''Analysis.''' Survey information will be categorized into groups.We will use the two hundred surveys response to get statistics on the seperated groups.

To view the final draft of our project which will be posted on the final weekof this semester, you can visit: <http://litmuse.maconstate.edu>

Sincerely,

Marie Julie D. Fidele
Fall class of English 3106

User:Fidele72001

2004-10-28T23:31:10Z

Fidele72001: