https://litwiki.org/api.php?action=feedcontributions&user=MHartley&feedformat=atomLitWiki - User contributions [en]2024-03-29T12:59:41ZUser contributionsMediaWiki 1.39.0https://litwiki.org/index.php?title=Debt_Relief:Bibliography&diff=2421Debt Relief:Bibliography2004-12-14T03:24:53Z<p>MHartley: /* Self Help */</p>
<hr />
<div>[[Debt Relief | Debt Relief Home Page]]<br />
<br />
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]].<br />
<br />
== Web Resources ==<br />
<br />
=== Articles ===<br />
*[http://www.ftc.gov/bcp/conline/pubs/credit/crdright.htm The Federal Trade Commission]- Credit and Your Consumer Rights<br />
<br />
=== Blogs ===<br />
* [http://finance.baylor.edu/weblogs/garven/ Jim Garven’s Blog] — A blog exploring the intersection of risk management, insurance, and finance.<br />
<br />
<br />
=== Credit Reporting Agencies ===<br />
View your credit report.<br />
* [http://www.transunion.com/ TransUnion] - Credit reporting agency<br />
* [http://www.equifax.com/ Equifax] - Credit reporting agency<br />
* [http://www.experian.com/ Experian] - Credit reporting agency<br />
<br />
=== Special Report ===<br />
PBS Frontline Report<br />
* [http://www.pbs.org/wgbh/pages/frontline/shows/credit/ Secret History of the Credit Card] - This report aired 11/23/04 on PBS and gives an inside look at the history of the credit card. The website gives tips for credit card holders and offers help on reading "the credit card contract." Highly recommended for everyone with a credit card.<br />
<br />
=== Self Help ===<br />
* [http://www.bbb.com/ Better Business Bureau] - This website will allow the opportunity to research more reliable debt relief agencies. <br />
* [http://www.myfico.com/ FICO Score] - Find out what a FICO score means to you.<br />
* [http://www.usdoj.gov/ Attorney General] - Contact your state's Attorney General office.<br />
* [http://www.collector.com/ American Collector's Association] - Find out more about what the American Collector's Association can do to help you.<br />
* [http://www.debtattack.com/ Debt Attack] - Extensive information on good and bad debt and ways to get out of debt.<br />
* [http://www.familycredit.org/ Family Credit]-- A non-profit, faith-based approach to managing debt.<br />
* [http://www.debtsteps.com/ Debt Steps] — Comprehensive reviews to help you protect your financial future.<br />
* [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.<br />
* [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.<br />
*[http://consumer-debt-consolidation.com/ Debt Consolidation Help]- Consolidate your debt into one payment.<br />
* [http://money.cnn.com/pf/101/lessons/9/index.html/ Controlling Debt] - CNN and Money Magazine breaks down the top things to know about debt.<br />
* [http://www.usaweekend.com/99_issues/990822/990822finance.html/ Good debt vs. bad] - USA Weekend Magazine establishes some borrowing guidelines to avoid bad debt.<br />
*[http://promise.ecol.net/finance/bankrupt.htm Bankruptcy and Restructuring Debt] - Gives advice on the advantages and disadvantages of bankrutcy and restructuring debt.<br />
*[http://creditinfocenter.com/debt/settle_debts.shtml/ Settling Debts] - Learn ways to settle debts including dealing with creditors.<br />
*[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.<br />
*[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.<br />
*[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.<br />
*[http://www.edebtfree.org/ccc.htm/ Credit Counseling]-Provides you with information on credit counseling.<br />
*[http://www.edebtfree.org/consolidation.htm Debt consolidation loans]-Provides you with information on debt consolidation.<br />
* [http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.htm Choosing a credit counselor]-This site gives advise on choosing a credit counselor.<br />
* [http://www.reducecarddebt.com/debt_consolidation_review.htm Reducing Credit Card Debt and Debt Consolidation]-This site explains that there is always a way to become debt free, no matter what the circumstances are.<br />
<br />
=== References ===<br />
* [http://arc.cs.odu.edu:8080/dp9/getrecord/oai_dc/etd.lsu.edu/oai:etd.lsu.edu:etd-0701102-195347 Bayesian Updating of Simulated Household Travel Survey Data for Small/Medium Metropolitan Areas]-Used to help construct survey validation.<br />
<br />
=== Statistics ===<br />
* Anonymous. "Graduates learn a lesson in debt management." ''Credit Management'' (May 2003): 12.<br />
* Oglivie, Donald G. "A view of the economy." ''The Kansas Banker'' 89.1 (Jan 1999): 20.<br />
* Mapother, William R. "Taming Consumer Debt." ''Credit Union Magazine'' 70.4 (Apr 2004): 72.<br />
* Anonymous. " 7 Debt - counseling warning signs." ''Essence''. 34.6 (Oct 2003): 120.<br />
* Anonymous. "All change at CCM." ''Credit Management'' (May 2003): 21.<br />
* Anderson, John H. "An introduction to bankruptcy." (Apr 2003): 27.<br />
<br />
== Print Resources ==<br />
=== Articles ===<br />
* Allen, Mary and Chantal Vaillancourt. “Class of 2000: Student Loans.” ''Canadian Social Trends'' 74 (2004): 18.<br />
* Anonymous. "7 Debt - Counseling warning signs." "Essence" 34.6 (oct 2003): 120.<br />
* Brown, Monique R. "Debt Dilemma." ''Black Enterprise'' 31.11 (Jun 2001): 326.<br />
* Goldwasser, Joan; Lankford, Kimberly. "Where To Go For Help." ''Kiplinger's Personal Finance'' 55.11 (Nov 2001): 77.<br />
*Hynes, Richard M. "Overoptimism and Overborrowing." ''Bringham Young University Law Review''2004.1 (2004): 127.<br />
* Kuykendall, Lavone. "Sallie Mae Gets Into Business Of Buting Bad Debt." ''American Banker'' (Sep 2004): Vol 169. pg 17.<br />
* Lee, Karl. " Secured Credit Lines." ''The Shooting Industry'' 48.10 (Oct 2003): 15.<br />
* Lim, Paul J. "How to improve your credit profile." ''U.S. News & World Report'' 6/17/2002, Vol. 132 Issue 21, p42.<br />
* McClannahan, Rory. "Simple Steps can curb debt, New Mexico Expert says." ''Knight Ridder Tribune Business News'' (Jun 2004): 1.<br />
* Morris, Valerie. "Should You Consider Debt Consolidation." ''Essence'' 33.11 (Mar 2003): 103<br />
* Rowland, Mary. "Good Credit gone Bad?" ''NEA Today'' 16.5 (Jan 1998): 38.<br />
* Ryan, Mike. "Qualifying Your Collection Agency: Ask the Right Questions." ''Business Credit'' Sep2004, Vol. 106 Issue 8, p65, 2p.<br />
*Sandberg, Erica. "The Value of Financial Planning and Debt Reduction Services for Employees and Employers." ''Employee Benefits Journal'' 27.4 (2002): 37.<br />
* Scott, Matthew S. "Q & A: What about debt management?" ''Black Enterprise'' (Aug 2004): 44.<br />
* Vogt, Katherine. "Climbing Out Of Debt." ''American Medical News'' (Feb 2004): Vol 47. pg 13.<br />
* Stav, Julie. "Scoring Good Credit." ''Hispanic'' (Nov 2004): Vol 17. pg 42.<br />
* Young, Gary. "Does the 'Fourth Option' Exist." ''National Law Journal'' (Jun 2004): Vol 26. pg 15.<br />
* "Coming To Terms" ''NEA Today'' 16.5 (Jan 1998): 38.<br />
<br />
=== Books ===<br />
* McNaughton, Debra. ''All About Credit''. Chicago: Dearborn, 1999.<br />
* Hammond, Bob. "Life Without Debt." New Jersey: Career Press, 1995.<br />
* Leonard, Attorney Robin. "Bankruptcy." Berkley: Nolo Press, 1998.<br />
* Fisher, Sarah Young. "The Complete Idiots Guide To Personal Finance In Your 20's and 30's." Indianapolis: Alpha Books, 2002.<br />
* Heady, Robert. "The Complete Idiot's Guide to Managing Your Money." New York: Alpha Books, 1999.<br />
<br />
=== Journals ===<br />
* Cressy, Robert C. "Debt rescheduling versus bankruptcy: The creditor's decision problem." ''Journal of Business Finance & Accounting''; Oct96, Vol. 23 Issue 8, p1141, 16p<br />
* Hynes, Richard M. "Overoptimism and Overborrowing" ''Brigham Young University Law Review''; 2004, Vol. 2004 Issue 1, p127, 42p<br />
<br />
----<br />
<br />
[[Debt Relief]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:Bibliography&diff=2410Debt Relief:Bibliography2004-12-14T03:21:43Z<p>MHartley: /* Self Help */</p>
<hr />
<div>[[Debt Relief | Debt Relief Home Page]]<br />
<br />
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]].<br />
<br />
== Web Resources ==<br />
<br />
=== Articles ===<br />
*[http://www.ftc.gov/bcp/conline/pubs/credit/crdright.htm The Federal Trade Commission]- Credit and Your Consumer Rights<br />
<br />
=== Blogs ===<br />
* [http://finance.baylor.edu/weblogs/garven/ Jim Garven’s Blog] — A blog exploring the intersection of risk management, insurance, and finance.<br />
<br />
<br />
=== Credit Reporting Agencies ===<br />
View your credit report.<br />
* [http://www.transunion.com/ TransUnion] - Credit reporting agency<br />
* [http://www.equifax.com/ Equifax] - Credit reporting agency<br />
* [http://www.experian.com/ Experian] - Credit reporting agency<br />
<br />
=== Special Report ===<br />
PBS Frontline Report<br />
* [http://www.pbs.org/wgbh/pages/frontline/shows/credit/ Secret History of the Credit Card] - This report aired 11/23/04 on PBS and gives an inside look at the history of the credit card. The website gives tips for credit card holders and offers help on reading "the credit card contract." Highly recommended for everyone with a credit card.<br />
<br />
=== Self Help ===<br />
* [http://www.bbb.com/ Better Business Bureau] - This website will allow the opportunity to research more reliable debt relief agencies. <br />
* [http://www.myfico.com/ FICO Score] - Find out what a FICO score means to you.<br />
* [http://www.usdoj.gov/ Attorney General] - Contact your state's Attorney General office.<br />
* [http://www.collector.com/ American Collector's Association] - Find out more about what the American Collector's Association can do to help you.<br />
* [http://www.debtattack.com/ Debt Attack] - Extensive information on good and bad debt and ways to get out of debt.<br />
* [http://www.familycredit.org/ Family Credit]-- A non-profit, faith-based approach to managing debt.<br />
* [http://www.debtsteps.com/ Debt Steps] — Comprehensive reviews to help you protect your financial future.<br />
* [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.<br />
* [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.<br />
*[http://consumer-debt-consolidation.com/ Debt Consolidation Help]- Consolidate your debt into one payment.<br />
* [http://money.cnn.com/pf/101/lessons/9/index.html/ Controlling Debt] - CNN and Money Magazine breaks down the top things to know about debt.<br />
* [http://www.usaweekend.com/99_issues/990822/990822finance.html/ Good debt vs. bad] - USA Weekend Magazine establishes some borrowing guidelines to avoid bad debt.<br />
*[http://promise.ecol.net/finance/bankrupt.htm Bankruptcy and Restructuring Debt] - Gives advice on the advantages and disadvantages of bankrutcy and restructuring debt.<br />
*[http://creditinfocenter.com/debt/settle_debts.shtml/ Settling Debts] - Learn ways to settle debts including dealing with creditors.<br />
*[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.<br />
*[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.<br />
*[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.<br />
*[http://www.edebtfree.org/ccc.htm/ Credit Counseling]-Provides you with information on credit counseling.<br />
*[http://www.edebtfree.org/consolidation.htm Debt consolidation loans]-Provides you with information on debt consolidation.<br />
* [http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.htm Choosing a credit counselor]-This site gives advise on choosing a credit counselor.<br />
* [http://www.reducecarddebt.com/debt_consolidation_review.htm Reducing Credit Card Debt and Debt Consolidation]-This site explains that there is always a way to become debt free, no matter what the circumstances are.<br />
<br />
=== References ===<br />
* [http://arc.cs.odu.edu:8080/dp9/getrecord/oai_dc/etd.lsu.edu/oai:etd.lsu.edu:etd-0701102-195347 Bayesian Updating of Simulated Household Travel Survey Data for Small/Medium Metropolitan Areas]-Used to help construct survey validation.<br />
<br />
=== Statistics ===<br />
* Anonymous. "Graduates learn a lesson in debt management." ''Credit Management'' (May 2003): 12.<br />
* Oglivie, Donald G. "A view of the economy." ''The Kansas Banker'' 89.1 (Jan 1999): 20.<br />
* Mapother, William R. "Taming Consumer Debt." ''Credit Union Magazine'' 70.4 (Apr 2004): 72.<br />
* Anonymous. " 7 Debt - counseling warning signs." ''Essence''. 34.6 (Oct 2003): 120.<br />
* Anonymous. "All change at CCM." ''Credit Management'' (May 2003): 21.<br />
* Anderson, John H. "An introduction to bankruptcy." (Apr 2003): 27.<br />
<br />
== Print Resources ==<br />
=== Articles ===<br />
* Allen, Mary and Chantal Vaillancourt. “Class of 2000: Student Loans.” ''Canadian Social Trends'' 74 (2004): 18.<br />
* Anonymous. "7 Debt - Counseling warning signs." "Essence" 34.6 (oct 2003): 120.<br />
* Brown, Monique R. "Debt Dilemma." ''Black Enterprise'' 31.11 (Jun 2001): 326.<br />
* Goldwasser, Joan; Lankford, Kimberly. "Where To Go For Help." ''Kiplinger's Personal Finance'' 55.11 (Nov 2001): 77.<br />
*Hynes, Richard M. "Overoptimism and Overborrowing." ''Bringham Young University Law Review''2004.1 (2004): 127.<br />
* Kuykendall, Lavone. "Sallie Mae Gets Into Business Of Buting Bad Debt." ''American Banker'' (Sep 2004): Vol 169. pg 17.<br />
* Lee, Karl. " Secured Credit Lines." ''The Shooting Industry'' 48.10 (Oct 2003): 15.<br />
* Lim, Paul J. "How to improve your credit profile." ''U.S. News & World Report'' 6/17/2002, Vol. 132 Issue 21, p42.<br />
* McClannahan, Rory. "Simple Steps can curb debt, New Mexico Expert says." ''Knight Ridder Tribune Business News'' (Jun 2004): 1.<br />
* Morris, Valerie. "Should You Consider Debt Consolidation." ''Essence'' 33.11 (Mar 2003): 103<br />
* Rowland, Mary. "Good Credit gone Bad?" ''NEA Today'' 16.5 (Jan 1998): 38.<br />
* Ryan, Mike. "Qualifying Your Collection Agency: Ask the Right Questions." ''Business Credit'' Sep2004, Vol. 106 Issue 8, p65, 2p.<br />
*Sandberg, Erica. "The Value of Financial Planning and Debt Reduction Services for Employees and Employers." ''Employee Benefits Journal'' 27.4 (2002): 37.<br />
* Scott, Matthew S. "Q & A: What about debt management?" ''Black Enterprise'' (Aug 2004): 44.<br />
* Vogt, Katherine. "Climbing Out Of Debt." ''American Medical News'' (Feb 2004): Vol 47. pg 13.<br />
* Stav, Julie. "Scoring Good Credit." ''Hispanic'' (Nov 2004): Vol 17. pg 42.<br />
* Young, Gary. "Does the 'Fourth Option' Exist." ''National Law Journal'' (Jun 2004): Vol 26. pg 15.<br />
* "Coming To Terms" ''NEA Today'' 16.5 (Jan 1998): 38.<br />
<br />
=== Books ===<br />
* McNaughton, Debra. ''All About Credit''. Chicago: Dearborn, 1999.<br />
* Hammond, Bob. "Life Without Debt." New Jersey: Career Press, 1995.<br />
* Leonard, Attorney Robin. "Bankruptcy." Berkley: Nolo Press, 1998.<br />
* Fisher, Sarah Young. "The Complete Idiots Guide To Personal Finance In Your 20's and 30's." Indianapolis: Alpha Books, 2002.<br />
* Heady, Robert. "The Complete Idiot's Guide to Managing Your Money." New York: Alpha Books, 1999.<br />
<br />
=== Journals ===<br />
* Cressy, Robert C. "Debt rescheduling versus bankruptcy: The creditor's decision problem." ''Journal of Business Finance & Accounting''; Oct96, Vol. 23 Issue 8, p1141, 16p<br />
* Hynes, Richard M. "Overoptimism and Overborrowing" ''Brigham Young University Law Review''; 2004, Vol. 2004 Issue 1, p127, 42p<br />
<br />
----<br />
<br />
[[Debt Relief]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2420Debt Relief2004-12-14T03:13:08Z<p>MHartley: /* Credit Card Consolidation */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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. <br />
<br />
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.<br />
<br />
==Debt Management==<br />
'''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 go directly to creditors on a client's behalf. <br />
<br />
An [[Debt Relief: Interview#Interview | Interview]] conducted with a local agency on the issue of debt management summed up some important points for anyone seeking help managing their credit. Here is a summary of the information gathered up from the meeting:<br />
<br />
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, [[Debt Relief:Bibliography#Self Help | 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 [[Debt Relief:Bibliography#Bibliography | Better Business Bureau]]. Also a debtor must make sure to look at state laws, so that he/she is not overcharged for financial help.<br />
<br />
The steps most of these agencies take to help debtors eliminate debt are: <br />
<br />
1) Help debtors to assess their debt situation.<br />
<br />
2) Give debt counseling, such as, avoiding overspending and advise in handling existing debts.<br />
<br />
3) Help the client to build and maintain good credit.<br />
<br />
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.<br />
<br />
==Managing Your Credit==<br />
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. <br />
<br />
*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit card| unsecured credit]] cards on your own.<br />
<br />
For those who need assistance managing their credit there are a variety of choices and options available. In an article by Hispanic magazine, financial author Julie Stav explains what a [[Debt Relief:Bibliography#Self Help | FICO]] score is, how credit bureaus calculate it, and ways to improve your score. An article by U.S. News and World Report states the following steps to keep the score manageable:<br />
<br />
1) Pay bills on time.<br />
<br />
2) Pay down debt.<br />
<br />
3) Maintain long-term credit relationships.<br />
<br />
4) Do not apply for too many loans.<br />
<br />
A great self-help guide to consider is Repair Your Own Credit which instructs debtors in how to repair and reestablish credit. It also lists organizations that will give free or low cost assistance in helping one stay out of debt. NEA Today, refers to credit management agencies such as Equifax and warns people about credit repair clinic rip-offs. These agencies do not do anything that you cannot do yourself. The counselors at Credit Union Magazine suggest that bankruptcy be the last resort in debt relief.<br />
<br />
==Credit Card Consolidation==<br />
Credit card companies 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 from what the credit card companies do best. These companies are in business to loan money. 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. <br />
<br />
Although trying to set up a debt management plan using services available through the various credit card companies may prove<br />
difficult, the small fees and inconvenience associated with debt management companies may be avoided.<br />
<br />
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.<br />
<br />
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:<br />
<br />
1) Evaluate where you stand with your debts.<br />
<br />
2) Don't wait until you are in over your head.<br />
<br />
3) Be sure to understand how debt consolidation truly works.(Morris, 103)<br />
<br />
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 [[Debt Relief:Bibliography#Self Help | 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)<br />
<br />
==Credit Harrassment==<br />
'''Creditor Harassment: Know Your Rights With Creditors'''. <br />
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]]. <br />
<br />
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. <br />
<br />
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 <br />
a third party, such as a collection agency or attorney. <br />
<br />
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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
<br />
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 [[Debt Relief:Bibliography#Self Help | Attorney General’s]] office, the [[Debt Relief:Bibliography | Federal Trade Commission]], and/or the [[Debt Relief:Bibliography#Self Help | American Collector's Association]] or local State Bar Association. <br />
<br />
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.<br />
<br />
==Bankruptcy==<br />
<br />
'''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.<br />
<br />
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. <br />
<br />
*'''Chapter 7 bankruptcy:''' involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.<br />
<br />
*'''Chapter 13 bankruptcy:''' is a court-ordered and approved repayment plan to your creditors.<br />
<br />
The following questions were answered during a telephone interview with Robert M. Matson from the law offices of Akin, Webster, & Matson, PC <br />
Attorney at Law:<br />
<br />
1) What is the process of filing for bankruptcy?<br />
* 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.<br />
2) How long does filing for bankruptcy stay on your credit report?<br />
* 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.<br />
3) Does filing for bankruptcy make your credit bad?<br />
* 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.<br />
4) How do you determine the fee that you charge clients who file for bankruptcy?<br />
* 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.<br />
5) Are they any other forms of bankruptcy besides Chapter 7 and Chapter 13?<br />
*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.<br />
* '''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.<br />
* '''Chapter 12 bankruptcy:''' is the filing of bankruptcy by farmers.<br />
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?<br />
* 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. <br />
*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.<br />
<br />
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.<br />
<br />
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. <br />
<br />
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.)<br />
<br />
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 from seven to ten years or longer. This may be a combination of an advantage and 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.<br />
<br />
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 in this new path the person needs to be aware that the discharge will remain on the credit report for the next five to seven years. <br />
<br />
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 view the person as a higher - risk than if the person had filed a Chapter thirteen. <br />
<br />
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.<br />
<br />
==Collection Agencies==<br />
<br />
A Collection agency is not the same as a debt counseling service.<br />
Collections agencies are employed by creditors to recover money owed to them.<br />
<br />
Creditors wait from six months to two years before turning a bad account over to a collection agency.<br />
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.<br />
<br />
The following information was gathered in an interview with Sandra Harden, Manager of Bibb Collections.<br />
<br />
* A collection agency goes after an individual who will not pay a debt. This debt is anything from medical bills to florists bills.<br />
* A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent. <br />
* 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.<br />
*Collection agencies charge a percentage of what is collected as a fee for the service.<br />
*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. <br />
*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.<br />
<br />
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.<br />
<br />
[[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. <br />
Credit counseling is also recommended.<br />
<br />
A collection agency is a company that is contacted by the original lender to collect past due and defaulted accounts. (www.spu.edu)<br />
<br />
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".<br />
<br />
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.<br />
<br />
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. <br />
<br />
You can avoid these agencies all together by simply managing your money right. Self-Help may be the best help.<br />
<br />
== Primary Research ==<br />
<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
* [[Debt Relief: Survey SAMPLE|Survey SAMPLE]]<br />
<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Professional Communication]]<br />
* [[Definitions and Common Terms]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography, Resources, and Further Readings]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2408Debt Relief2004-12-14T03:09:03Z<p>MHartley: /* Managing Your Credit */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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. <br />
<br />
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.<br />
<br />
==Debt Management==<br />
'''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 go directly to creditors on a client's behalf. <br />
<br />
An [[Debt Relief: Interview#Interview | Interview]] conducted with a local agency on the issue of debt management summed up some important points for anyone seeking help managing their credit. Here is a summary of the information gathered up from the meeting:<br />
<br />
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, [[Debt Relief:Bibliography#Self Help | 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 [[Debt Relief:Bibliography#Bibliography | Better Business Bureau]]. Also a debtor must make sure to look at state laws, so that he/she is not overcharged for financial help.<br />
<br />
The steps most of these agencies take to help debtors eliminate debt are: <br />
<br />
1) Help debtors to assess their debt situation.<br />
<br />
2) Give debt counseling, such as, avoiding overspending and advise in handling existing debts.<br />
<br />
3) Help the client to build and maintain good credit.<br />
<br />
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.<br />
<br />
==Managing Your Credit==<br />
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. <br />
<br />
*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit card| unsecured credit]] cards on your own.<br />
<br />
For those who need assistance managing their credit there are a variety of choices and options available. In an article by Hispanic magazine, financial author Julie Stav explains what a [[Debt Relief:Bibliography#Self Help | FICO]] score is, how credit bureaus calculate it, and ways to improve your score. An article by U.S. News and World Report states the following steps to keep the score manageable:<br />
<br />
1) Pay bills on time.<br />
<br />
2) Pay down debt.<br />
<br />
3) Maintain long-term credit relationships.<br />
<br />
4) Do not apply for too many loans.<br />
<br />
A great self-help guide to consider is Repair Your Own Credit which instructs debtors in how to repair and reestablish credit. It also lists organizations that will give free or low cost assistance in helping one stay out of debt. NEA Today, refers to credit management agencies such as Equifax and warns people about credit repair clinic rip-offs. These agencies do not do anything that you cannot do yourself. The counselors at Credit Union Magazine suggest that bankruptcy be the last resort in debt relief.<br />
<br />
==Credit Card Consolidation==<br />
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. <br />
<br />
Although trying to set up a debt management plan using services available through the various credit card companies may prove<br />
difficult, the small fees and inconvenience associated with debt management companies may be avoided.<br />
<br />
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.<br />
<br />
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:<br />
<br />
1) Evaluate where you stand with your debts.<br />
<br />
2) Don't wait until you are in over your head.<br />
<br />
3) Be sure to understand how debt consolidation truly works.(Morris, 103)<br />
<br />
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 [[Debt Relief:Bibliography#Self Help | 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)<br />
<br />
==Credit Harrassment==<br />
'''Creditor Harassment: Know Your Rights With Creditors'''. <br />
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]]. <br />
<br />
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. <br />
<br />
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 <br />
a third party, such as a collection agency or attorney. <br />
<br />
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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
<br />
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 [[Debt Relief:Bibliography#Self Help | Attorney General’s]] office, the [[Debt Relief:Bibliography | Federal Trade Commission]], and/or the [[Debt Relief:Bibliography#Self Help | American Collector's Association]] or local State Bar Association. <br />
<br />
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.<br />
<br />
==Bankruptcy==<br />
<br />
'''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.<br />
<br />
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. <br />
<br />
*'''Chapter 7 bankruptcy:''' involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.<br />
<br />
*'''Chapter 13 bankruptcy:''' is a court-ordered and approved repayment plan to your creditors.<br />
<br />
The following questions were answered during a telephone interview with Robert M. Matson from the law offices of Akin, Webster, & Matson, PC <br />
Attorney at Law:<br />
<br />
1) What is the process of filing for bankruptcy?<br />
* 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.<br />
2) How long does filing for bankruptcy stay on your credit report?<br />
* 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.<br />
3) Does filing for bankruptcy make your credit bad?<br />
* 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.<br />
4) How do you determine the fee that you charge clients who file for bankruptcy?<br />
* 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.<br />
5) Are they any other forms of bankruptcy besides Chapter 7 and Chapter 13?<br />
*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.<br />
* '''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.<br />
* '''Chapter 12 bankruptcy:''' is the filing of bankruptcy by farmers.<br />
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?<br />
* 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. <br />
*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.<br />
<br />
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.<br />
<br />
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. <br />
<br />
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.)<br />
<br />
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 from seven to ten years or longer. This may be a combination of an advantage and 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.<br />
<br />
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 in this new path the person needs to be aware that the discharge will remain on the credit report for the next five to seven years. <br />
<br />
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 view the person as a higher - risk than if the person had filed a Chapter thirteen. <br />
<br />
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.<br />
<br />
==Collection Agencies==<br />
<br />
A Collection agency is not the same as a debt counseling service.<br />
Collections agencies are employed by creditors to recover money owed to them.<br />
<br />
Creditors wait from six months to two years before turning a bad account over to a collection agency.<br />
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.<br />
<br />
The following information was gathered in an interview with Sandra Harden, Manager of Bibb Collections.<br />
<br />
* A collection agency goes after an individual who will not pay a debt. This debt is anything from medical bills to florists bills.<br />
* A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent. <br />
* 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.<br />
*Collection agencies charge a percentage of what is collected as a fee for the service.<br />
*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. <br />
*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.<br />
<br />
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.<br />
<br />
[[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. <br />
Credit counseling is also recommended.<br />
<br />
A collection agency is a company that is contacted by the original lender to collect past due and defaulted accounts. (www.spu.edu)<br />
<br />
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".<br />
<br />
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.<br />
<br />
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. <br />
<br />
You can avoid these agencies all together by simply managing your money right. Self-Help may be the best help.<br />
<br />
== Primary Research ==<br />
<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
* [[Debt Relief: Survey SAMPLE|Survey SAMPLE]]<br />
<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Professional Communication]]<br />
* [[Definitions and Common Terms]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography, Resources, and Further Readings]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2309Debt Relief2004-12-07T22:24:33Z<p>MHartley: /* Collection Agencies */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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.<br />
<br />
==Debt Management==<br />
'''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.<br />
<br />
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.<br />
<br />
The steps most of these agencies take to help debtors eliminate debt are: <br />
<br />
1.) They help debtors to assess his/her debt situation.<br />
<br />
2.) Avoiding overspending and handling existing debts are other areas consultants help debtors with.<br />
<br />
3.) The final steps are helping the client to build and maintain good credit.<br />
<br />
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.<br />
<br />
==Managing Your Credit==<br />
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. <br />
<br />
*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit card| unsecured credit]] cards on your own.<br />
<br />
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:<br />
<br />
1.) Pay bills on time.<br />
<br />
2.) Pay down debt.<br />
<br />
3.) Maintain long-term credit relationships.<br />
<br />
4.) Do not apply for too many loans.<br />
<br />
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.<br />
<br />
==Credit Card Consolidation==<br />
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. <br />
<br />
Although trying to set up a debt management plan using services available through the various credit card companies may prove<br />
difficult, the small fees and inconvenience associated with debt management companies may be avoided.<br />
<br />
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.<br />
<br />
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:<br />
<br />
# Evaluate where you stand with your debts.<br />
# Don't wait until you are in over your head.<br />
# Be sure to understand how debt consolidation truly works.(Morris, 103)<br />
<br />
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)<br />
<br />
==Credit Harrassment==<br />
'''Creditor Harassment: Know Your Rights With Creditors'''. <br />
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]]. <br />
<br />
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. <br />
<br />
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 <br />
a third party, such as a collection agency or attorney. <br />
<br />
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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
<br />
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. <br />
<br />
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.<br />
<br />
==Bankruptcy==<br />
<br />
'''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.<br />
<br />
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. <br />
<br />
*'''Chapter 7 bankruptcy:'''involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.<br />
<br />
*'''Chapter 13 bankruptcy:'''is a court-ordered and approved repayment plan to your creditors.<br />
<br />
The following questions were answered during a telephone interview with Robert M. Matson from the law offices of Akin, Webster, & Matson, PC <br />
Attorney at Law:<br />
<br />
1) What is the process of filing for bankruptcy?<br />
* 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.<br />
2) How long does filing for bankruptcy stay on your credit report?<br />
* 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.<br />
3) Does filing for bankruptcy make your credit bad?<br />
* 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.<br />
4) How do you determine the fee that you charge clients who file for bankruptcy?<br />
* 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.<br />
5) Are they any other forms of bankruptcy besides Chapter 7 and Chapter 13?<br />
*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.<br />
* '''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.<br />
* '''Chapter 12 bankruptcy:''' is the filing of bankruptcy by farmers.<br />
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?<br />
* 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. <br />
*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.<br />
<br />
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.<br />
<br />
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. <br />
<br />
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.)<br />
<br />
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.<br />
<br />
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. <br />
<br />
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. <br />
<br />
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.<br />
<br />
==Collection Agencies==<br />
<br />
A Collection agency is not the same as a debt counseling service.<br />
Collections agencies are employed by creditors to recover money owed to them.<br />
<br />
Creditors wait from six months to two years before turning a bad account over to a collection agency.<br />
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.<br />
<br />
The following information was gathered in an interview with Sandra Harden, Manager of Bibb Collections.<br />
<br />
* A collection agency goes after an individual who will not pay a debt. This debt is anything from medical bills to florists bills.<br />
* A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent. <br />
* 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.<br />
*Collection agencies charge a percentage of what is collected as a fee for the service.<br />
*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. <br />
*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.<br />
<br />
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.<br />
<br />
[[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. <br />
Credit counseling is also recommended.<br />
<br />
A collection agency is a company that is contacted by the original lender to collect past due and defaulted accounts. (www.spu.edu)<br />
<br />
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".<br />
<br />
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.<br />
<br />
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. <br />
<br />
You can avoid these agencies all together by simply managing your money right. Self-Help may be the Best Help.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2303Debt Relief2004-12-07T22:21:28Z<p>MHartley: /* Credit Card Consolidation */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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.<br />
<br />
==Debt Management==<br />
'''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.<br />
<br />
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.<br />
<br />
The steps most of these agencies take to help debtors eliminate debt are: <br />
<br />
1.) They help debtors to assess his/her debt situation.<br />
<br />
2.) Avoiding overspending and handling existing debts are other areas consultants help debtors with.<br />
<br />
3.) The final steps are helping the client to build and maintain good credit.<br />
<br />
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.<br />
<br />
==Managing Your Credit==<br />
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. <br />
<br />
*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit card| unsecured credit]] cards on your own.<br />
<br />
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:<br />
<br />
1.) Pay bills on time.<br />
<br />
2.) Pay down debt.<br />
<br />
3.) Maintain long-term credit relationships.<br />
<br />
4.) Do not apply for too many loans.<br />
<br />
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.<br />
<br />
==Credit Card Consolidation==<br />
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. <br />
<br />
Although trying to set up a debt management plan using services available through the various credit card companies may prove<br />
difficult, the small fees and inconvenience associated with debt management companies may be avoided.<br />
<br />
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.<br />
<br />
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:<br />
<br />
# Evaluate where you stand with your debts.<br />
# Don't wait until you are in over your head.<br />
# Be sure to understand how debt consolidation truly works.(Morris, 103)<br />
<br />
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)<br />
<br />
==Credit Harrassment==<br />
'''Creditor Harassment: Know Your Rights With Creditors'''. <br />
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]]. <br />
<br />
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. <br />
<br />
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 <br />
a third party, such as a collection agency or attorney. <br />
<br />
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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
<br />
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. <br />
<br />
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.<br />
<br />
==Bankruptcy==<br />
<br />
'''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.<br />
<br />
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. <br />
<br />
*'''Chapter 7 bankruptcy:'''involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.<br />
<br />
*'''Chapter 13 bankruptcy:'''is a court-ordered and approved repayment plan to your creditors.<br />
<br />
The following questions were answered during a telephone interview with Robert M. Matson from the law offices of Akin, Webster, & Matson, PC <br />
Attorney at Law:<br />
<br />
1) What is the process of filing for bankruptcy?<br />
* 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.<br />
2) How long does filing for bankruptcy stay on your credit report?<br />
* 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.<br />
3) Does filing for bankruptcy make your credit bad?<br />
* 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.<br />
4) How do you determine the fee that you charge clients who file for bankruptcy?<br />
* 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.<br />
5) Are they any other forms of bankruptcy besides Chapter 7 and Chapter 13?<br />
*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.<br />
* '''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.<br />
* '''Chapter 12 bankruptcy:''' is the filing of bankruptcy by farmers.<br />
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?<br />
* 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. <br />
*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.<br />
<br />
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.<br />
<br />
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. <br />
<br />
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.)<br />
<br />
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.<br />
<br />
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. <br />
<br />
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. <br />
<br />
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.<br />
<br />
==Collection Agencies==<br />
<br />
A Collection agency is not the same as a debt counseling service.<br />
Collections agencies are employed by creditors to recover money owed to them.<br />
<br />
Creditors wait from six months to two years before turning a bad account over to a collection agency.<br />
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.<br />
<br />
The following information was gathered in an interview with Sandra Harden, Manager of Bibb Collections.<br />
<br />
* A collection agency goes after an individual who will not pay a debt. This debt is anything from medical bills to florists bills.<br />
* A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent. <br />
* 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.<br />
*Collection agencies charge a percentage o<br />
f what is collected as a fee for the service.<br />
*The methods u<br />
sed 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. <br />
*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.<br />
<br />
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.<br />
<br />
[[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. <br />
Credit counseling is also recommended.<br />
<br />
A collection agency is a company that is contacted by the original lender to collect past due and defaulted accounts. (www.spu.edu)<br />
<br />
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".<br />
<br />
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.<br />
<br />
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. <br />
<br />
You can avoid these agencies all together by simply managing your money right. Self-Help may be the Best Help.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2302Debt Relief2004-12-07T22:20:15Z<p>MHartley: /* Credit Card Consolidation */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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.<br />
<br />
==Debt Management==<br />
'''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.<br />
<br />
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.<br />
<br />
The steps most of these agencies take to help debtors eliminate debt are: <br />
<br />
1.) They help debtors to assess his/her debt situation.<br />
<br />
2.) Avoiding overspending and handling existing debts are other areas consultants help debtors with.<br />
<br />
3.) The final steps are helping the client to build and maintain good credit.<br />
<br />
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.<br />
<br />
==Managing Your Credit==<br />
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. <br />
<br />
*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit card| unsecured credit]] cards on your own.<br />
<br />
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:<br />
<br />
1.) Pay bills on time.<br />
<br />
2.) Pay down debt.<br />
<br />
3.) Maintain long-term credit relationships.<br />
<br />
4.) Do not apply for too many loans.<br />
<br />
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.<br />
<br />
==Credit Card Consolidation==<br />
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. <br />
<br />
Although trying to set up a debt management plan using services available through the various credit card companies may prove<br />
difficult, the small fees and inconvenience associated with debt management companies may be avoided.<br />
<br />
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.<br />
<br />
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:<br />
<br />
# Evaluate where you stand with your debts.<br />
# Don't wait until you are in over your head.<br />
# Be sure to understand how debt consolidation truly works.(Morris, 103)<br />
<br />
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)<br />
<br />
==Credit Harrassment==<br />
'''Creditor Harassment: Know Your Rights With Creditors'''. <br />
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]]. <br />
<br />
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. <br />
<br />
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 <br />
a third party, such as a collection agency or attorney. <br />
<br />
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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
<br />
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. <br />
<br />
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.<br />
<br />
==Bankruptcy==<br />
<br />
'''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.<br />
<br />
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. <br />
<br />
*'''Chapter 7 bankruptcy:'''involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.<br />
<br />
*'''Chapter 13 bankruptcy:'''is a court-ordered and approved repayment plan to your creditors.<br />
<br />
The following questions were answered during a telephone interview with Robert M. Matson from the law offices of Akin, Webster, & Matson, PC <br />
Attorney at Law:<br />
<br />
1) What is the process of filing for bankruptcy?<br />
* 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.<br />
2) How long does filing for bankruptcy stay on your credit report?<br />
* 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.<br />
3) Does filing for bankruptcy make your credit bad?<br />
* 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.<br />
4) How do you determine the fee that you charge clients who file for bankruptcy?<br />
* 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.<br />
5) Are they any other forms of bankruptcy besides Chapter 7 and Chapter 13?<br />
*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.<br />
* '''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.<br />
* '''Chapter 12 bankruptcy:''' is the filing of bankruptcy by farmers.<br />
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?<br />
* 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. <br />
*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.<br />
<br />
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.<br />
<br />
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. <br />
<br />
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.)<br />
<br />
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.<br />
<br />
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. <br />
<br />
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. <br />
<br />
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.<br />
<br />
==Collection Agencies==<br />
<br />
A Collection agency is not the same as a debt counseling service.<br />
Collections agencies are employed by creditors to recover money owed to them.<br />
<br />
Creditors wait from six months to two years before turning a bad account over to a collection agency.<br />
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.<br />
<br />
The following information was gathered in an interview with Sandra Harden, Manager of Bibb Collections.<br />
<br />
* A collection agency goes after an individual who will not pay a debt. This debt is anything from medical bills to florists bills.<br />
* A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent. <br />
* 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.<br />
*Collection agencies charge a percentage o<br />
f what is collected as a fee for the service.<br />
*The methods u<br />
sed 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. <br />
*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.<br />
<br />
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.<br />
<br />
[[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. <br />
Credit counseling is also recommended.<br />
<br />
A collection agency is a company that is contacted by the original lender to collect past due and defaulted accounts. (www.spu.edu)<br />
<br />
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".<br />
<br />
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.<br />
<br />
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. <br />
<br />
You can avoid these agencies all together by simply managing your money right. Self-Help may be the Best Help.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2301Debt Relief2004-12-07T22:16:13Z<p>MHartley: /* Managing Your Credit */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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.<br />
<br />
==Debt Management==<br />
'''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.<br />
<br />
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.<br />
<br />
The steps most of these agencies take to help debtors eliminate debt are: <br />
<br />
1.) They help debtors to assess his/her debt situation.<br />
<br />
2.) Avoiding overspending and handling existing debts are other areas consultants help debtors with.<br />
<br />
3.) The final steps are helping the client to build and maintain good credit.<br />
<br />
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.<br />
<br />
==Managing Your Credit==<br />
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. <br />
<br />
*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit card| unsecured credit]] cards on your own.<br />
<br />
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:<br />
<br />
1.) Pay bills on time.<br />
<br />
2.) Pay down debt.<br />
<br />
3.) Maintain long-term credit relationships.<br />
<br />
4.) Do not apply for too many loans.<br />
<br />
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.<br />
<br />
==Credit Card Consolidation==<br />
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. <br />
<br />
Although trying to set up a debt management plan using services available through the various credit card companies may prove d<br />
ifficult, the small fees and inconvenience associated with debt management companies may be avoided.<br />
<br />
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 indepth look at the credit card business and common practices unknown to many of us.<br />
<br />
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:<br />
<br />
# Evaluate where you stand with your debts.<br />
# Don't wait until you are in over your head.<br />
# Be sure to understand how debt consolidation truly works.(Morris, 103)<br />
<br />
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)<br />
<br />
==Credit Harrassment==<br />
'''Creditor Harassment: Know Your Rights With Creditors'''. <br />
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]]. <br />
<br />
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. <br />
<br />
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 <br />
a third party, such as a collection agency or attorney. <br />
<br />
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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
<br />
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. <br />
<br />
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.<br />
<br />
==Bankruptcy==<br />
<br />
'''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.<br />
<br />
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. <br />
<br />
*'''Chapter 7 bankruptcy:'''involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.<br />
<br />
*'''Chapter 13 bankruptcy:'''is a court-ordered and approved repayment plan to your creditors.<br />
<br />
The following questions were answered during a telephone interview with Robert M. Matson from the law offices of Akin, Webster, & Matson, PC <br />
Attorney at Law:<br />
<br />
1) What is the process of filing for bankruptcy?<br />
* 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.<br />
2) How long does filing for bankruptcy stay on your credit report?<br />
* 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.<br />
3) Does filing for bankruptcy make your credit bad?<br />
* 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.<br />
4) How do you determine the fee that you charge clients who file for bankruptcy?<br />
* 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.<br />
5) Are they any other forms of bankruptcy besides Chapter 7 and Chapter 13?<br />
*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.<br />
* '''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.<br />
* '''Chapter 12 bankruptcy:''' is the filing of bankruptcy by farmers.<br />
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?<br />
* 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. <br />
*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.<br />
<br />
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.<br />
<br />
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. <br />
<br />
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.)<br />
<br />
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.<br />
<br />
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. <br />
<br />
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. <br />
<br />
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.<br />
<br />
==Collection Agencies==<br />
<br />
A Collection agency is not the same as a debt counseling service.<br />
Collections agencies are employed by creditors to recover money owed to them.<br />
<br />
Creditors wait from six months to two years before turning a bad account over to a collection agency.<br />
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.<br />
<br />
The following information was gathered in an interview with Sandra Harden, Manager of Bibb Collections.<br />
<br />
* A collection agency goes after an individual who will not pay a debt. This debt is anything from medical bills to florists bills.<br />
* A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent. <br />
* 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.<br />
*Collection agencies charge a percentage o<br />
f what is collected as a fee for the service.<br />
*The methods u<br />
sed 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. <br />
*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.<br />
<br />
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.<br />
<br />
[[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. <br />
Credit counseling is also recommended.<br />
<br />
A collection agency is a company that is contacted by the original lender to collect past due and defaulted accounts. (www.spu.edu)<br />
<br />
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".<br />
<br />
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.<br />
<br />
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. <br />
<br />
You can avoid these agencies all together by simply managing your money right. Self-Help may be the Best Help.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2300Debt Relief2004-12-07T22:14:58Z<p>MHartley: /* Managing Your Credit */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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.<br />
<br />
==Debt Management==<br />
'''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.<br />
<br />
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.<br />
<br />
The steps most of these agencies take to help debtors eliminate debt are: <br />
<br />
1.) They help debtors to assess his/her debt situation.<br />
<br />
2.) Avoiding overspending and handling existing debts are other areas consultants help debtors with.<br />
<br />
3.) The final steps are helping the client to build and maintain good credit.<br />
<br />
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.<br />
<br />
==Managing Your Credit==<br />
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. <br />
<br />
*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit card| unsecured credit]] cards on your own.<br />
<br />
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:<br />
<br />
1.) Pay bills on time.<br />
<br />
2.) Pay down debt.<br />
<br />
3.) Maintain long-term credit relationships.<br />
<br />
4.) Do not apply for too many loans.<br />
<br />
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 U<br />
nion Magazine suggest that bankruptcy be the last resort in certain circumstances.<br />
<br />
==Credit Card Consolidation==<br />
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. <br />
<br />
Although trying to set up a debt management plan using services available through the various credit card companies may prove d<br />
ifficult, the small fees and inconvenience associated with debt management companies may be avoided.<br />
<br />
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 indepth look at the credit card business and common practices unknown to many of us.<br />
<br />
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:<br />
<br />
# Evaluate where you stand with your debts.<br />
# Don't wait until you are in over your head.<br />
# Be sure to understand how debt consolidation truly works.(Morris, 103)<br />
<br />
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)<br />
<br />
==Credit Harrassment==<br />
'''Creditor Harassment: Know Your Rights With Creditors'''. <br />
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]]. <br />
<br />
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. <br />
<br />
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 <br />
a third party, such as a collection agency or attorney. <br />
<br />
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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
<br />
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. <br />
<br />
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.<br />
<br />
==Bankruptcy==<br />
<br />
'''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.<br />
<br />
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. <br />
<br />
*'''Chapter 7 bankruptcy:'''involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.<br />
<br />
*'''Chapter 13 bankruptcy:'''is a court-ordered and approved repayment plan to your creditors.<br />
<br />
The following questions were answered during a telephone interview with Robert M. Matson from the law offices of Akin, Webster, & Matson, PC <br />
Attorney at Law:<br />
<br />
1) What is the process of filing for bankruptcy?<br />
* 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.<br />
2) How long does filing for bankruptcy stay on your credit report?<br />
* 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.<br />
3) Does filing for bankruptcy make your credit bad?<br />
* 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.<br />
4) How do you determine the fee that you charge clients who file for bankruptcy?<br />
* 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.<br />
5) Are they any other forms of bankruptcy besides Chapter 7 and Chapter 13?<br />
*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.<br />
* '''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.<br />
* '''Chapter 12 bankruptcy:''' is the filing of bankruptcy by farmers.<br />
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?<br />
* 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. <br />
*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.<br />
<br />
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.<br />
<br />
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. <br />
<br />
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.)<br />
<br />
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.<br />
<br />
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. <br />
<br />
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. <br />
<br />
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.<br />
<br />
==Collection Agencies==<br />
<br />
A Collection agency is not the same as a debt counseling service.<br />
Collections agencies are employed by creditors to recover money owed to them.<br />
<br />
Creditors wait from six months to two years before turning a bad account over to a collection agency.<br />
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.<br />
<br />
The following information was gathered in an interview with Sandra Harden, Manager of Bibb Collections.<br />
<br />
* A collection agency goes after an individual who will not pay a debt. This debt is anything from medical bills to florists bills.<br />
* A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent. <br />
* 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.<br />
*Collection agencies charge a percentage o<br />
f what is collected as a fee for the service.<br />
*The methods u<br />
sed 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. <br />
*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.<br />
<br />
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.<br />
<br />
[[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. <br />
Credit counseling is also recommended.<br />
<br />
A collection agency is a company that is contacted by the original lender to collect past due and defaulted accounts. (www.spu.edu)<br />
<br />
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".<br />
<br />
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.<br />
<br />
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. <br />
<br />
You can avoid these agencies all together by simply managing your money right. Self-Help may be the Best Help.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=User:MHartley&diff=8390User:MHartley2004-12-03T00:11:01Z<p>MHartley: </p>
<hr />
<div>In this Professional Communication class, I have grown as a writer in some ways. I have always enjoyed writing and felt there were some things that I needed to develop. In my current job, I write appeal letters to insurance companies every day. The letters are all written free hand and on occasion, I struggle with what I need to say. I am using the techniques I have learned and having an easier time developing the letters.<br />
<br />
I truly expected the class to be boring. I was wrong. I enjoy writing and the assignments were not hard. I do wish I had taken a few extra minutes to make a perfect score on each assignment. I was stressed with the Wiki assignment at first because I felt certain the project would not be completed. Once everything came together I began to feel better about it. I do not care much for reading textbooks, but I will keep this one and use for reference. The lecture portion of the class reinforced the reading material by highlighting the key stuff. The only suggestion I would have in improving the course would be to assign individual Wiki projects.</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2275Debt Relief2004-12-03T00:05:26Z<p>MHartley: /* Bankruptcy */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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.<br />
<br />
==Debt Management==<br />
'''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.<br />
==Managing Your Credit==<br />
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. <br />
<br />
*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit card| unsecured credit]] cards on your own.<br />
<br />
==Credit Card Consolidation==<br />
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. <br />
<br />
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.<br />
<br />
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 indepth look at the credit card business and common practices unknown to many of us.<br />
<br />
==Credit Harrassment==<br />
'''Creditor Harassment: Know Your Rights With Creditors'''. <br />
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]]. <br />
<br />
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. <br />
<br />
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 <br />
a third party, such as a collection agency or attorney. <br />
<br />
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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
<br />
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. <br />
<br />
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.<br />
<br />
==Bankruptcy==<br />
<br />
'''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.<br />
<br />
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. <br />
<br />
*'''Chapter 7 bankruptcy:'''involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.<br />
<br />
*'''Chapter 13 bankruptcy:'''is a court-ordered and approved repayment plan to your creditors.<br />
<br />
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:<br />
<br />
1) What is the process of filing for bankruptcy?<br />
* 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.<br />
2) How long does filing for bankruptcy stay on your credit report?<br />
* 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.<br />
3) Does filing for bankruptcy make your credit bad?<br />
* 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.<br />
4) How do you determine the fee that you charge clients who file for bankruptcy?<br />
* 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.<br />
5) Are they any other forms of bankruptcy besides Chapter 7 and Chapter 13?<br />
*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.<br />
* '''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.<br />
* '''Chapter 12 bankruptcy:''' is the filing of bankruptcy by farmers.<br />
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?<br />
* 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. <br />
*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.<br />
<br />
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.<br />
<br />
==Collection Agencies==<br />
<br />
A Collection agency is not the same as a debt counseling service.<br />
Collections agencies are employed by creditors to recover money owed to them.<br />
<br />
Creditors wait from six months to two years before turning a bad account over to a collection agency.<br />
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.<br />
<br />
The following information was gathered in an interview with Sandra Harden, Manager of Bibb Collections.<br />
<br />
* A collection agency goes after an individual who will not pay a debt. This debt is anything from medical bills to florists bills.<br />
* A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent. <br />
* 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.<br />
*Collection agencies charge a percentage o<br />
f what is collected as a fee for the service.<br />
*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. <br />
*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.<br />
<br />
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.<br />
<br />
[[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. <br />
Credit counseling is also recommended.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2255Debt Relief2004-12-02T23:58:57Z<p>MHartley: /* Credit Card Consolidation */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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.<br />
<br />
==Debt Management==<br />
'''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.<br />
==Managing Your Credit==<br />
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. <br />
<br />
*Apply for a [[Debt Relief:Definitions#secured card | secured card]] or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit card| unsecured credit]] cards on your own.<br />
<br />
==Credit Card Consolidation==<br />
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. <br />
<br />
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.<br />
<br />
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 indepth look at the credit card business and common practices unknown to many of us.<br />
<br />
==Credit Harrassment==<br />
'''Creditor Harassment: Know Your Rights With Creditors'''. <br />
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]]. <br />
<br />
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. <br />
<br />
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 <br />
a third party, such as a collection agency or attorney. <br />
<br />
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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
<br />
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. <br />
<br />
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.<br />
<br />
==Bankruptcy==<br />
<br />
'''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.<br />
<br />
There are two types of personal bankruptcy: '''Chapter 7''' and '''Chapter 13'''. Chapter 7 bankruptcy and Chapter 13 bankruptcy are legal proceedings that are avaliable 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 minimial fee for court and attorney costs. <br />
<br />
*'''Chapter 7 bankruptcy:'''involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.<br />
<br />
*'''Chapter 13 bankruptcy:'''is a court-ordered and approved repayment plan to your creditors.<br />
<br />
The following questions were answered during a telephone interview with Robert M. Matson fro<br />
m the law offices of Akin, Webster, & Matson, PC Attorney at Law:<br />
<br />
1) What is the process of filing for bankruptcy?<br />
* 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 notify the client's to inform them on whether or not they should file for bankruptcy.<br />
2) How long does filing for bankruptcy stay on your credit report?<br />
* 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.<br />
3) Does filing for bankruptcy make your credit bad?<br />
* 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.<br />
4) How do you determine the fee that you charge clients who file for bankruptcy?<br />
* 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.<br />
5) Are they any other forms of bankruptcy besides Chapter 7 and Chapter 13?<br />
*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.<br />
* '''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.<br />
* '''Chapter 12 bankruptcy:''' is the filing of bankruptcy by farmers.<br />
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?<br />
* 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. <br />
*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.<br />
<br />
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.<br />
<br />
==Collection Agencies==<br />
<br />
A Collection agency is not the same as a debt counseling service.<br />
Collections agencies are employed by creditors to recover money owed to them.<br />
<br />
Creditors wait from six months to two years before turning a bad account over to a collection agency.<br />
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.<br />
<br />
The following information was gathered in an interview with Sandra Harden, Manager of Bibb Collections.<br />
<br />
* A collection agency goes after an individual who will not pay a debt. This debt is anything from medical bills to florists bills.<br />
* A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent. <br />
* 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.<br />
*Collection agencies charge a percentage o<br />
f what is collected as a fee for the service.<br />
*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. <br />
*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.<br />
<br />
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.<br />
<br />
[[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. <br />
Credit counseling is also recommended.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=User:MHartley&diff=2257User:MHartley2004-12-02T23:32:09Z<p>MHartley: </p>
<hr />
<div>In this Professional Communication class, I have grown as a writer in some ways. I have always enjoyed writing and felt there were some things that I needed to develop. In my current job, I write appeal letters to insurance companies every day. The letters are all written free hand and on occasion, I struggle with what I need to say. I am using the techniques I have learned and having an easier time developing the letters.<br />
<br />
I truly expected the class to be boring. I was wrong. I enjoy writing and the assignments were not hard. I do wish I had taken a few extra minutes to make a perfect score on each assignment. I was stressed with Wiki assignment at first because I felt certain the project would not be completed. Once everything came together I began to feel better about it. I do not care much for reading textbooks, but I will keep this one and use for reference. The lecture portion of the class reinforced the reading material by highlighting the key stuff. The only suggestion I would have in improving the course would be to assign individual Wiki projects.</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2200Debt Relief2004-12-02T01:29:41Z<p>MHartley: /* Resources */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
==Managing Your Credit==<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and Equifax. Whether your credit is good or bad is determined by your [[Debt Relief:Definitions#Beacon |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. <br />
<br />
*Apply for a secured card or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, but pay them off in full each month. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit| unsecured credit]] cards on your own.<br />
<br />
==Credit Card Consolidation==<br />
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. <br />
<br />
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.<br />
<br />
==Credit Harrassment==<br />
Creditor Harassment Know Your Rights With Creditors <br />
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]]. <br />
<br />
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. <br />
<br />
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. <br />
<br />
Fair Debt Collection Practices Act 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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
<br />
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. <br />
<br />
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.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2199Debt Relief2004-12-02T01:25:24Z<p>MHartley: /* Resources */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
==Managing Your Credit==<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and Equifax. Whether your credit is good or bad is determined by your [[Debt Relief:Definitions#Beacon |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. <br />
<br />
*Apply for a secured card or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, but pay them off in full each month. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit| unsecured credit]] cards on your own.<br />
<br />
==Credit Card Consolidation==<br />
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. <br />
<br />
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.<br />
<br />
==Credit Harrassment==<br />
Creditor Harassment Know Your Rights With Creditors <br />
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]]. <br />
<br />
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. <br />
<br />
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. <br />
<br />
Fair Debt Collection Practices Act 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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
<br />
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. <br />
<br />
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.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2198Debt Relief2004-12-02T01:23:54Z<p>MHartley: /* Credit Consolidation */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
==Managing Your Credit==<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and Equifax. Whether your credit is good or bad is determined by your [[Debt Relief:Definitions#Beacon |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. <br />
<br />
*Apply for a secured card or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, but pay them off in full each month. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit| unsecured credit]] cards on your own.<br />
<br />
==Credit Card Consolidation==<br />
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. <br />
<br />
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.<br />
<br />
==Credit Harrassment==<br />
Creditor Harassment Know Your Rights With Creditors <br />
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]]. <br />
<br />
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. <br />
<br />
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. <br />
<br />
Fair Debt Collection Practices Act 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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
<br />
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. <br />
<br />
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.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2197Debt Relief2004-12-02T01:22:06Z<p>MHartley: </p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
==Managing Your Credit==<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and Equifax. Whether your credit is good or bad is determined by your [[Debt Relief:Definitions#Beacon |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. <br />
<br />
*Apply for a secured card or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, but pay them off in full each month. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit| unsecured credit]] cards on your own.<br />
<br />
==Credit Consolidation==<br />
<br />
==Credit Harrassment==<br />
Creditor Harassment Know Your Rights With Creditors <br />
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]]. <br />
<br />
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. <br />
<br />
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. <br />
<br />
Fair Debt Collection Practices Act 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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
<br />
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. <br />
<br />
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.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2196Debt Relief2004-12-02T01:14:34Z<p>MHartley: /* Credit Harrassment */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
==Managing Your Credit==<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and Equifax. Whether your credit is good or bad is determined by your [[Debt Relief:Definitions#Beacon |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. <br />
<br />
*Apply for a secured card or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, but pay them off in full each month. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit| unsecured credit]] cards on your own.<br />
<br />
==Credit Harrassment==<br />
Creditor Harassment Know Your Rights With Creditors <br />
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]]. <br />
<br />
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. <br />
<br />
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. <br />
<br />
Fair Debt Collection Practices Act 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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
<br />
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. <br />
<br />
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.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2195Debt Relief2004-12-02T01:13:02Z<p>MHartley: /* Credit Harrassment */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
==Managing Your Credit==<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and Equifax. Whether your credit is good or bad is determined by your [[Debt Relief:Definitions#Beacon |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. <br />
<br />
*Apply for a secured card or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, but pay them off in full each month. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit| unsecured credit]] cards on your own.<br />
<br />
==Credit Harrassment==<br />
Creditor Harassment Know Your Rights With Creditors <br />
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]]. <br />
<br />
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. <br />
<br />
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. <br />
<br />
Fair Debt Collection Practices Act 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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
ensure they receive it <br />
<br />
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. <br />
<br />
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.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2194Debt Relief2004-12-02T01:07:56Z<p>MHartley: /* Credit Harrassment */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
==Managing Your Credit==<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and Equifax. Whether your credit is good or bad is determined by your [[Debt Relief:Definitions#Beacon |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. <br />
<br />
*Apply for a secured card or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, but pay them off in full each month. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit| unsecured credit]] cards on your own.<br />
<br />
==Credit Harrassment==<br />
Creditor Harassment Know Your Rights With Creditors <br />
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]]. <br />
<br />
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. <br />
<br />
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. <br />
<br />
Fair Debt Collection Practices Act 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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when collecting debt<br />
* Obtain amounts greater or less than debt amount (unless state laws permit change)<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collects calls <br />
* Threaten to take property (unless done legally) <br />
* Contact via postcard Tips for success <br />
* Address the letter to the collection agency, not the original creditor <br />
* Use the physical address for the agency, not a PO Box <br />
* Send the letter Certified Mail - Return Receipt to ensure they receive it <br />
* Keep a copy of the letter and receipt for your records<br />
<br />
What can I 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. <br />
<br />
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.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2193Debt Relief2004-12-02T01:00:07Z<p>MHartley: /* Credit Harrassment */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
==Managing Your Credit==<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and Equifax. Whether your credit is good or bad is determined by your [[Debt Relief:Definitions#Beacon |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. <br />
<br />
*Apply for a secured card or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, but pay them off in full each month. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit| unsecured credit]] cards on your own.<br />
<br />
==Credit Harrassment==<br />
Creditor Harassment Know Your Rights With Creditors <br />
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]]. <br />
<br />
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. <br />
<br />
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. <br />
<br />
Fair Debt Collection Practices Act 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: <br />
* Harass, oppress, abuse, or publish lists of consumers who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when Obtain amounts greater or less than debt amount (unless state laws permit change)collecting debt<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collect call <br />
* Threaten to take property (unless done legally) <br />
* Contact via postcard Tips for success <br />
* Address the letter to the collection agency, not the original creditor <br />
* Use the physical address for the agency, not a PO Box <br />
* Send the letter Certified Mail - Return Receipt to ensure they receive it <br />
* Keep a copy of the letter and receipt for your records<br />
<br />
What can I 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. <br />
<br />
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.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2192Debt Relief2004-12-02T00:53:52Z<p>MHartley: /* Managing Your Credit */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
==Managing Your Credit==<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and Equifax. Whether your credit is good or bad is determined by your [[Debt Relief:Definitions#Beacon |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. <br />
<br />
*Apply for a secured card or deposit money in your checking account. <br />
*Apply for a department store or gasoline credit card and build small balances, but pay them off in full each month. <br />
*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. <br />
*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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit| unsecured credit]] cards on your own.<br />
<br />
==Credit Harrassment==<br />
Creditor Harassment Know Your Rights With Creditors <br />
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]]. <br />
<br />
How can I protect myself 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. <br />
<br />
Can I send a Cease and Desist letter to my creditor? 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. <br />
<br />
Fair Debt Collection Practices Act 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: <br />
* Harass, oppress, abuse, or publish lists of consumer who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when Obtain amounts greater or less than debt amount (unless state laws permit change)collecting debt<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collect call <br />
* Threaten to take property (unless done legally) <br />
* Contact via postcard Tips for success <br />
* Address the letter to the collection agency, not the original creditor <br />
* Use the physical address for the agency, not a PO Box <br />
* Send the letter Certified Mail - Return Receipt to ensure they receive it <br />
* Keep a copy of the letter and receipt for your records<br />
<br />
What can I 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. <br />
<br />
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.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2191Debt Relief2004-12-02T00:51:54Z<p>MHartley: /* Managing Your Credit */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
==Managing Your Credit==<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and Equifax. Whether your credit is good or bad is determined by your [[Debt Relief:Definitions#Beacon |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. <br />
<br />
Apply for a secured card or deposit money in your checking account. <br />
Apply for a department store or gasoline credit card and build small balances, but pay them off in full each month. <br />
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. <br />
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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit| unsecured credit]] cards on your own.<br />
<br />
==Credit Harrassment==<br />
Creditor Harassment Know Your Rights With Creditors <br />
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]]. <br />
<br />
How can I protect myself 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. <br />
<br />
Can I send a Cease and Desist letter to my creditor? 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. <br />
<br />
Fair Debt Collection Practices Act 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: <br />
* Harass, oppress, abuse, or publish lists of consumer who refuse payment <br />
* Use profane language <br />
* Repeatedly use the telephone to badger someone <br />
* Give false information <br />
* Imply they are attorneys, government representatives, or work for a credit bureau <br />
* Insinuate you have committed a crime<br />
* Falsely suggest they work for a credit bureau<br />
* Misinterpret the debt amount <br />
* Submit false information about you to anyone (including credit bureaus) <br />
* Indicate sent forms are from the court or government agency when they are not <br />
* Participate in unfair practices when Obtain amounts greater or less than debt amount (unless state laws permit change)collecting debt<br />
* Deposit a post-dated check prematurely <br />
* Use deception to make a debtor accept collect call <br />
* Threaten to take property (unless done legally) <br />
* Contact via postcard Tips for success <br />
* Address the letter to the collection agency, not the original creditor <br />
* Use the physical address for the agency, not a PO Box <br />
* Send the letter Certified Mail - Return Receipt to ensure they receive it <br />
* Keep a copy of the letter and receipt for your records<br />
<br />
What can I 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. <br />
<br />
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.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2184Debt Relief2004-12-01T00:19:20Z<p>MHartley: /* Resources */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
==Managing Your Credit==<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and Equifax. Whether your credit is good or bad is determined by your 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. <br />
<br />
Apply for a secured card or deposit money in your checking account. <br />
Apply for a department store or gasoline credit card and build small balances, but pay them off in full each month. <br />
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. <br />
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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit| unsecured credit]] cards on your own.<br />
<br />
==Credit Harrassment==<br />
Creditor Harassment Know Your Rights With Creditors <br />
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]]. <br />
<br />
How can I protect myself from harassment? Asking a collector to stop calling should be effective in most cases. However, a 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. <br />
<br />
Can I send a Cease and Desist letter to my creditor? 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. <br />
<br />
Fair Debt Collection Practices Act 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 consumer 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 Obtain amounts greater or less than debt amount (unless state laws permit change)collecting debt • Deposit a post-dated check prematurely • Use deception to make a debtor accept collect call • Threaten to take property (unless done legally) • Contact via postcard Tips for success • Address the letter to the collection agency, not the original creditor • Use the physical address for the agency, not a PO Box • Send the letter Certified Mail - Return Receipt to ensure they receive it • Keep a copy of the letter and receipt for your records What can I 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. <br />
<br />
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.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: Debt Test|Debt Test]]<br />
*[[Debt Relief: Sample Cease and Desist Letter|Sample Cease and Desist Letter]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:Fair_Debt_Collection_Act&diff=2234Debt Relief:Fair Debt Collection Act2004-12-01T00:18:22Z<p>MHartley: </p>
<hr />
<div>THE FAIR DEBT COLLECTION PRACTICES ACT <br />
<br />
As amended by Public Law 104-208, 110 Stat. 3009 (Sept. 30, 1996) <br />
<br />
<br />
<br />
<br />
<br />
--------------------------------------------------------------------------------<br />
<br />
To amend the Consumer Credit Protection Act to prohibit abusive practices by debt collectors. <br />
<br />
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) is amended by adding at the end thereof the following new title: <br />
<br />
TITLE VIII - DEBT COLLECTION PRACTICES [Fair Debt Collection Practices Act] <br />
<br />
Sec. 801. Short Title 802. Congressional findings and declaration of purpose 803. Definitions 804. Acquisition of location information 805. Communication in connection with debt collection 806. Harassment or abuse 807. False or misleading representations 808. Unfair practice 809. Validation of debts 810. Multiple debts 811. Legal actions by debt collectors 812. Furnishing certain deceptive forms 813. Civil liability 814. Administrative enforcement 815. Reports to Congress by the Commission 816. Relation to State laws 817. Exemption for State regulation 818. Effective date <br />
<br />
§ 801. Short Title [15 USC 1601 note] <br />
<br />
This title may be cited as the "Fair Debt Collection Practices Act." <br />
<br />
§ 802. Congressional findings and declarations of purpose [15 USC 1692] <br />
<br />
(a) There is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors. Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy. <br />
<br />
(b) Existing laws and procedures for redressing these injuries are inadequate to protect consumers. <br />
<br />
(c) Means other than misrepresentation or other abusive debt collection practices are available for the effective collection of debts. <br />
<br />
(d) Abusive debt collection practices are carried on to a substantial extent in interstate commerce and through means and instrumentalities of such commerce. Even where abusive debt collection practices are purely intrastate in character, they nevertheless directly affect interstate commerce. <br />
<br />
(e) It is the purpose of this title to eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses. <br />
<br />
§ 803. Definitions [15 USC 1692a] <br />
<br />
As used in this title -- <br />
<br />
(1) The term "Commission" means the Federal Trade Commission. <br />
<br />
(2) The term "communication" means the conveying of information regarding a debt directly or indirectly to any person through any medium. <br />
<br />
(3) The term "consumer" means any natural person obligated or allegedly obligated to pay any debt. <br />
<br />
(4) The term "creditor" means any person who offers or extends credit creating a debt or to whom a debt is owed, but such term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another. <br />
<br />
(5) The term "debt" means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance or services which are the subject of the transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to judgment. <br />
<br />
(6) The term "debt collector" means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. Notwithstanding the exclusion provided by clause (F) of the last sentence of this paragraph, the term includes any creditor who, in the process of collecting his own debts, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts. For the purpose of section 808(6), such term also includes any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the enforcement of security interests. The term does not include -- <br />
<br />
(A) any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor; <br />
<br />
(B) any person while acting as a debt collector for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a debt collector does so only for persons to whom it is so related or affiliated and if the principal business of such person is not the collection of debts; <br />
<br />
(C) any officer or employee of the United States or any State to the extent that collecting or attempting to collect any debt is in the performance of his official duties; <br />
<br />
(D) any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt; <br />
<br />
(E) any nonprofit organization which, at the request of consumers, performs bona fide consumer credit counseling and assists consumers in the liquidation of their debts by receiving payments from such consumers and distributing such amounts to creditors; and <br />
<br />
(F) any person collecting or attempting to collect any debt owed or due or asserted to be owed or due another to the extent such activity (i) is incidental to a bona fide fiduciary obligation or a bona fide escrow arrangement; (ii) concerns a debt which was originated by such person; (iii) concerns a debt which was not in default at the time it was obtained by such person; or (iv) concerns a debt obtained by such person as a secured party in a commercial credit transaction involving the creditor. <br />
<br />
(7) The term "location information" means a consumer's place of abode and his telephone number at such place, or his place of employment. <br />
<br />
(8) The term "State" means any State, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any political subdivision of any of the foregoing. <br />
<br />
§ 804. Acquisition of location information [15 USC 1692b] <br />
<br />
Any debt collector communicating with any person other than the consumer for the purpose of acquiring location information about the consumer shall -- <br />
<br />
(1) identify himself, state that he is confirming or correcting location information concerning the consumer, and, only if expressly requested, identify his employer; <br />
<br />
(2) not state that such consumer owes any debt; <br />
<br />
(3) not communicate with any such person more than once unless requested to do so by such person or unless the debt collector reasonably believes that the earlier response of such person is erroneous or incomplete and that such person now has correct or complete location information; <br />
<br />
(4) not communicate by post card; <br />
<br />
(5) not use any language or symbol on any envelope or in the contents of any communication effected by the mails or telegram that indicates that the debt collector is in the debt collection business or that the communication relates to the collection of a debt; and <br />
<br />
(6) after the debt collector knows the consumer is represented by an attorney with regard to the subject debt and has knowledge of, or can readily ascertain, such attorney's name and address, not communicate with any person other than that attorney, unless the attorney fails to respond within a reasonable period of time to the communication from the debt collector. <br />
<br />
§ 805. Communication in connection with debt collection [15 USC 1692c] <br />
<br />
(a) COMMUNICATION WITH THE CONSUMER GENERALLY. Without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer in connection with the collection of any debt -- <br />
<br />
(1) at any unusual time or place or a time or place known or which should be known to be inconvenient to the consumer. In the absence of knowledge of circumstances to the contrary, a debt collector shall assume that the convenient time for communicating with a consumer is after 8 o'clock antimeridian and before 9 o'clock postmeridian, local time at the consumer's location; <br />
<br />
(2) if the debt collector knows the consumer is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain, such attorney's name and address, unless the attorney fails to respond within a reasonable period of time to a communication from the debt collector or unless the attorney consents to direct communication with the consumer; or <br />
<br />
(3) at the consumer's place of employment if the debt collector knows or has reason to know that the consumer's employer prohibits the consumer from receiving such communication. <br />
<br />
(b) COMMUNICATION WITH THIRD PARTIES. Except as provided in section 804, without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than a consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector. <br />
<br />
(c) CEASING COMMUNICATION. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except -- <br />
<br />
(1) to advise the consumer that the debt collector's further efforts are being terminated; <br />
<br />
(2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or <br />
<br />
(3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy. <br />
<br />
If such notice from the consumer is made by mail, notification shall be complete upon receipt. <br />
<br />
(d) For the purpose of this section, the term "consumer" includes the consumer's spouse, parent (if the consumer is a minor), guardian, executor, or administrator. <br />
<br />
§ 806. Harassment or abuse [15 USC 1692d] <br />
<br />
A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: <br />
<br />
(1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person. <br />
<br />
(2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader. <br />
<br />
(3) The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency or to persons meeting the requirements of section 603(f) or 604(3)1 of this Act. <br />
<br />
(4) The advertisement for sale of any debt to coerce payment of the debt. <br />
<br />
(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number. <br />
<br />
(6) Except as provided in section 804, the placement of telephone calls without meaningful disclosure of the caller's identity. <br />
<br />
§ 807. False or misleading representations [15 USC 1692e] <br />
<br />
A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: <br />
<br />
(1) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof. <br />
<br />
(2) The false representation of -- <br />
<br />
(A) the character, amount, or legal status of any debt; or <br />
<br />
(B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt. <br />
<br />
(3) The false representation or implication that any individual is an attorney or that any communication is from an attorney. <br />
<br />
(4) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action. <br />
<br />
(5) The threat to take any action that cannot legally be taken or that is not intended to be taken. <br />
<br />
(6) The false representation or implication that a sale, referral, or other transfer of any interest in a debt shall cause the consumer to -- <br />
<br />
(A) lose any claim or defense to payment of the debt; or <br />
<br />
(B) become subject to any practice prohibited by this title. <br />
<br />
(7) The false representation or implication that the consumer committed any crime or other conduct in order to disgrace the consumer. <br />
<br />
(8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed. <br />
<br />
(9) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval. <br />
<br />
(10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer. <br />
<br />
(11) The failure to disclose in the initial written communication with the consumer and, in addition, if the initial communication with the consumer is oral, in that initial oral communication, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector, except that this paragraph shall not apply to a formal pleading made in connection with a legal action. <br />
<br />
(12) The false representation or implication that accounts have been turned over to innocent purchasers for value. <br />
<br />
(13) The false representation or implication that documents are legal process. <br />
<br />
(14) The use of any business, company, or organization name other than the true name of the debt collector's business, company, or organization. <br />
<br />
(15) The false representation or implication that documents are not legal process forms or do not require action by the consumer. <br />
<br />
(16) The false representation or implication that a debt collector operates or is employed by a consumer reporting agency as defined by section 603(f) of this Act. <br />
<br />
§ 808. Unfair practices [15 USC 1692f] <br />
<br />
A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: <br />
<br />
(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law. <br />
<br />
(2) The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit. <br />
<br />
(3) The solicitation by a debt collector of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution. <br />
<br />
(4) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument. <br />
<br />
(5) Causing charges to be made to any person for communications by concealment of the true propose of the communication. Such charges include, but are not limited to, collect telephone calls and telegram fees. <br />
<br />
(6) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if -- <br />
<br />
(A) there is no present right to possession of the property claimed as collateral through an enforceable security interest; <br />
<br />
(B) there is no present intention to take possession of the property; or <br />
<br />
(C) the property is exempt by law from such dispossession or disablement. <br />
<br />
(7) Communicating with a consumer regarding a debt by post card. <br />
<br />
(8) Using any language or symbol, other than the debt collector's address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business. <br />
<br />
§ 809. Validation of debts [15 USC 1692g] <br />
<br />
(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing -- <br />
<br />
(1) the amount of the debt; <br />
<br />
(2) the name of the creditor to whom the debt is owed; <br />
<br />
(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector; <br />
<br />
(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and <br />
<br />
(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor. <br />
<br />
(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. <br />
<br />
(c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer. <br />
<br />
§ 810. Multiple debts [15 USC 1692h] <br />
<br />
If any consumer owes multiple debts and makes any single payment to any debt collector with respect to such debts, such debt collector may not apply such payment to any debt which is disputed by the consumer and, where applicable, shall apply such payment in accordance with the consumer's directions. <br />
<br />
§ 811. Legal actions by debt collectors [15 USC 1692i] <br />
<br />
(a) Any debt collector who brings any legal action on a debt against any consumer shall -- <br />
<br />
(1) in the case of an action to enforce an interest in real property securing the consumer's obligation, bring such action only in a judicial district or similar legal entity in which such real property is located; or <br />
<br />
(2) in the case of an action not described in paragraph (1), bring such action only in the judicial district or similar legal entity -- <br />
<br />
(A) in which such consumer signed the contract sued upon; or <br />
<br />
(B) in which such consumer resides at the commencement of the action. <br />
<br />
(b) Nothing in this title shall be construed to authorize the bringing of legal actions by debt collectors. <br />
<br />
§ 812. Furnishing certain deceptive forms [15 USC 1692j] <br />
<br />
(a) It is unlawful to design, compile, and furnish any form knowing that such form would be used to create the false belief in a consumer that a person other than the creditor of such consumer is participating in the collection of or in an attempt to collect a debt such consumer allegedly owes such creditor, when in fact such person is not so participating. <br />
<br />
(b) Any person who violates this section shall be liable to the same extent and in the same manner as a debt collector is liable under section 813 for failure to comply with a provision of this title. <br />
<br />
§ 813. Civil liability [15 USC 1692k] <br />
<br />
(a) Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this title with respect to any person is liable to such person in an amount equal to the sum of -- <br />
<br />
(1) any actual damage sustained by such person as a result of such failure; <br />
<br />
(2) (A) in the case of any action by an individual, such additional damages as the court may allow, but not exceeding $1,000; or <br />
<br />
(B) in the case of a class action, (i) such amount for each named plaintiff as could be recovered under subparagraph (A), and (ii) such amount as the court may allow for all other class members, without regard to a minimum individual recovery, not to exceed the lesser of $500,000 or 1 per centum of the net worth of the debt collector; and <br />
<br />
(3) in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney's fee as determined by the court. On a finding by the court that an action under this section was brought in bad faith and for the purpose of harassment, the court may award to the defendant attorney's fees reasonable in relation to the work expended and costs. <br />
<br />
(b) In determining the amount of liability in any action under subsection (a), the court shall consider, among other relevant factors -- <br />
<br />
(1) in any individual action under subsection (a)(2)(A), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, and the extent to which such noncompliance was intentional; or <br />
<br />
(2) in any class action under subsection (a)(2)(B), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, the resources of the debt collector, the number of persons adversely affected, and the extent to which the debt collector's noncompliance was intentional. <br />
<br />
(c) A debt collector may not be held liable in any action brought under this title if the debt collector shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error. <br />
<br />
(d) An action to enforce any liability created by this title may be brought in any appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction, within one year from the date on which the violation occurs. <br />
<br />
(e) No provision of this section imposing any liability shall apply to any act done or omitted in good faith in conformity with any advisory opinion of the Commission, notwithstanding that after such act or omission has occurred, such opinion is amended, rescinded, or determined by judicial or other authority to be invalid for any reason. <br />
<br />
§ 814. Administrative enforcement [15 USC 1692l] <br />
<br />
(a) Compliance with this title shall be enforced by the Commission, except to the extend that enforcement of the requirements imposed under this title is specifically committed to another agency under subsection (b). For purpose of the exercise by the Commission of its functions and powers under the Federal Trade Commission Act, a violation of this title shall be deemed an unfair or deceptive act or practice in violation of that Act. All of the functions and powers of the Commission under the Federal Trade Commission Act are available to the Commission to enforce compliance by any person with this title, irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests in the Federal Trade Commission Act, including the power to enforce the provisions of this title in the same manner as if the violation had been a violation of a Federal Trade Commission trade regulation rule. <br />
<br />
(b) Compliance with any requirements imposed under this title shall be enforced under -- <br />
<br />
(1) section 8 of the Federal Deposit Insurance Act, in the case of -- <br />
<br />
(A) national banks, by the Comptroller of the Currency; <br />
<br />
(B) member banks of the Federal Reserve System (other than national banks), by the Federal Reserve Board; and <br />
<br />
(C) banks the deposits or accounts of which are insured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System), by the Board of Directors of the Federal Deposit Insurance Corporation; <br />
<br />
(2) section 5(d) of the Home Owners Loan Act of 1933, section 407 of the National Housing Act, and sections 6(i) and 17 of the Federal Home Loan Bank Act, by the Federal Home Loan Bank Board (acting directing or through the Federal Savings and Loan Insurance Corporation), in the case of any institution subject to any of those provisions; <br />
<br />
(3) the Federal Credit Union Act, by the Administrator of the National Credit Union Administration with respect to any Federal credit union; <br />
<br />
(4) subtitle IV of Title 49, by the Interstate Commerce Commission with respect to any common carrier subject to such subtitle; <br />
<br />
(5) the Federal Aviation Act of 1958, by the Secretary of Transportation with respect to any air carrier or any foreign air carrier subject to that Act; and <br />
<br />
(6) the Packers and Stockyards Act, 1921 (except as provided in section 406 of that Act), by the Secretary of Agriculture with respect to any activities subject to that Act. <br />
<br />
(c) For the purpose of the exercise by any agency referred to in subsection (b) of its powers under any Act referred to in that subsection, a violation of any requirement imposed under this title shall be deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any provision of law specifically referred to in subsection (b), each of the agencies referred to in that subsection may exercise, for the purpose of enforcing compliance with any requirement imposed under this title any other authority conferred on it by law, except as provided in subsection (d). <br />
<br />
(d) Neither the Commission nor any other agency referred to in subsection (b) may promulgate trade regulation rules or other regulations with respect to the collection of debts by debt collectors as defined in this title. <br />
<br />
§ 815. Reports to Congress by the Commission [15 USC 1692m] <br />
<br />
(a) Not later than one year after the effective date of this title and at one-year intervals thereafter, the Commission shall make reports to the Congress concerning the administration of its functions under this title, including such recommendations as the Commission deems necessary or appropriate. In addition, each report of the Commission shall include its assessment of the extent to which compliance with this title is being achieved and a summary of the enforcement actions taken by the Commission under section 814 of this title. <br />
<br />
(b) In the exercise of its functions under this title, the Commission may obtain upon request the views of any other Federal agency which exercises enforcement functions under section 814 of this title. <br />
<br />
§ 816. Relation to State laws [15 USC 1692n] <br />
<br />
This title does not annul, alter, or affect, or exempt any person subject to the provisions of this title from complying with the laws of any State with respect to debt collection practices, except to the extent that those laws are inconsistent with any provision of this title, and then only to the extent of the inconsistency. For purposes of this section, a State law is not inconsistent with this title if the protection such law affords any consumer is greater than the protection provided by this title. <br />
<br />
§ 817. Exemption for State regulation [15 USC 1692o] <br />
<br />
The Commission shall by regulation exempt from the requirements of this title any class of debt collection practices within any State if the Commission determines that under the law of that State that class of debt collection practices is subject to requirements substantially similar to those imposed by this title, and that there is adequate provision for enforcement. <br />
<br />
§ 818. Effective date [15 USC 1692 note] <br />
<br />
This title takes effect upon the expiration of six months after the date of its enactment, but section 809 shall apply only with respect to debts for which the initial attempt to collect occurs after such effective date. <br />
<br />
Approved September 20, 1977 <br />
<br />
<br />
<br />
<br />
<br />
--------------------------------------------------------------------------------<br />
<br />
ENDNOTES <br />
<br />
1. So in original; however, should read "604(a)(3)." <br />
<br />
<br />
<br />
<br />
<br />
--------------------------------------------------------------------------------<br />
<br />
LEGISLATIVE HISTORY: <br />
<br />
Public Law 95-109 [H.R. 5294] <br />
<br />
HOUSE REPORT No. 95-131 (Comm. on Banking, Finance, and Urban Affairs). <br />
<br />
SENATE REPORT No. 95-382 (Comm. on Banking, Housing, and Urban Affairs). <br />
<br />
CONGRESSIONAL RECORD, Vol. 123 (1977): <br />
<br />
Apr. 4, considered and passed House. <br />
<br />
Aug. 5, considered and passed Senate, amended. <br />
<br />
Sept. 8, House agreed to Senate amendment. <br />
<br />
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 39: <br />
<br />
Sept. 20, Presidential statement. <br />
<br />
AMENDMENTS: <br />
<br />
SECTION 621, SUBSECTIONS (b)(3), (b)(4) and (b)(5) were amended to transfer certain administrative enforcement responsibilities, pursuant to Pub. L. 95-473, § 3(b), Oct. 17, 1978. 92 Stat. 166; Pub. L. 95-630, Title V. § 501, November 10, 1978, 92 Stat. 3680; Pub. L. 98-443, § 9(h), Oct. 4, 1984, 98 Stat. 708. <br />
<br />
SECTION 803, SUBSECTION (6), defining "debt collector," was amended to repeal the attorney at law exemption at former Section (6)(F) and to redesignate Section 803(6)(G) pursuant to Pub. L. 99-361, July 9, 1986, 100 Stat. 768. For legislative history, see H.R. 237, HOUSE REPORT No. 99-405 (Comm. on Banking, Finance and Urban Affairs). CONGRESSIONAL RECORD: Vol. 131 (1985): Dec. 2, considered and passed House. Vol. 132 (1986): June 26, considered and passed Senate. <br />
<br />
SECTION 807, SUBSECTION (11), was amended to affect when debt collectors must state (a) that they are attempting to collect a debt and (b) that information obtained will be used for that purpose, pursuant to Pub. L. 104-208 § 2305, 110 Stat. 3009 (Sept. 30, 1996).</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2182Debt Relief2004-12-01T00:16:20Z<p>MHartley: /* Credit Harrassment */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
==Managing Your Credit==<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and Equifax. Whether your credit is good or bad is determined by your 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. <br />
<br />
Apply for a secured card or deposit money in your checking account. <br />
Apply for a department store or gasoline credit card and build small balances, but pay them off in full each month. <br />
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. <br />
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. <br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#unsecured credit| unsecured credit]] cards on your own.<br />
<br />
==Credit Harrassment==<br />
Creditor Harassment Know Your Rights With Creditors <br />
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]]. <br />
<br />
How can I protect myself from harassment? Asking a collector to stop calling should be effective in most cases. However, a 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. <br />
<br />
Can I send a Cease and Desist letter to my creditor? 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. <br />
<br />
Fair Debt Collection Practices Act 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 consumer 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 Obtain amounts greater or less than debt amount (unless state laws permit change)collecting debt • Deposit a post-dated check prematurely • Use deception to make a debtor accept collect call • Threaten to take property (unless done legally) • Contact via postcard Tips for success • Address the letter to the collection agency, not the original creditor • Use the physical address for the agency, not a PO Box • Send the letter Certified Mail - Return Receipt to ensure they receive it • Keep a copy of the letter and receipt for your records What can I 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. <br />
<br />
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.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: THE FAIR DEBT COLLECTION PRACTICES ACT| THE FAIR DEBT COLLECTION PRACTICES ACT]]<br />
* [[Debt Relief: Debt Test|Debt Test]]<br />
*[[Debt Relief: Sample Cease and Desist Letter|Sample Cease and Desist Letter]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2171Debt Relief2004-12-01T00:05:30Z<p>MHartley: /* Credit Harrassment */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
<br />
==Credit Harrassment==<br />
Creditor Harassment Know Your Rights With Creditors <br />
<br />
<br />
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 Fair Debt Collection Act. <br />
<br />
How can I protect myself from harassment? Asking a collector to stop calling should be effective in most cases. However, a 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. <br />
<br />
Can I send a Cease and Desist letter to my creditor? 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. <br />
<br />
Fair Debt Collection Practices Act 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 consumer 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 Obtain amounts greater or less than debt amount (unless state laws permit change)collecting debt • Deposit a post-dated check prematurely • Use deception to make a debtor accept collect call • Threaten to take property (unless done legally) • Contact via postcard Tips for success • Address the letter to the collection agency, not the original creditor • Use the physical address for the agency, not a PO Box • Send the letter Certified Mail - Return Receipt to ensure they receive it • Keep a copy of the letter and receipt for your records What can I 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. <br />
<br />
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.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
*[[Debt Relief:Managing Your Credit|Managing Your Credit]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: THE FAIR DEBT COLLECTION PRACTICES ACT| THE FAIR DEBT COLLECTION PRACTICES ACT]]<br />
* [[Debt Relief: Debt Test|Debt Test]]<br />
*[[Debt Relief: Credit Harrassment|Credit Harrassment]]<br />
*[[Debt Relief: Sample Cease and Desist Letter|Sample Cease and Desist Letter]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2170Debt Relief2004-12-01T00:04:25Z<p>MHartley: /* Credit Harrassment */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
<br />
==Credit Harrassment==<br />
Creditor Harassment Know Your Rights With Creditors <br />
<br />
<br />
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 Fair Debt Collection Act. <br />
<br />
How can I protect myself from harassment? Asking a collector to stop calling should be effective in most cases. However, a 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. <br />
<br />
Can I send a Cease and Desist letter to my creditor? 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. <br />
<br />
Fair Debt Collection Practices Act 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 consumer 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 Obtain amounts greater or less than debt amount (unless state laws permit change)collecting debt • Deposit a post-dated check prematurely • Use deception to make a debtor accept collect call • Threaten to take property (unless done legally) • Contact via postcard Tips for success • Address the letter to the collection agency, not the original creditor • Use the physical address for the agency, not a PO Box • Send the letter Certified Mail - Return Receipt to ensure they receive it • Keep a copy of the letter and receipt for your records What can I 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. <br />
<br />
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. <br />
<br />
Retrieved from "http://litmuse.maconstate.edu/litwiki/index.php/Debt_Relief:_Credit_Harrassment"<br />
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<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
*[[Debt Relief:Managing Your Credit|Managing Your Credit]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: THE FAIR DEBT COLLECTION PRACTICES ACT| THE FAIR DEBT COLLECTION PRACTICES ACT]]<br />
* [[Debt Relief: Debt Test|Debt Test]]<br />
*[[Debt Relief: Credit Harrassment|Credit Harrassment]]<br />
*[[Debt Relief: Sample Cease and Desist Letter|Sample Cease and Desist Letter]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2169Debt Relief2004-12-01T00:02:58Z<p>MHartley: </p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
==Debt Management==<br />
'''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.<br />
<br />
==Credit Harrassment==<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
*[[Debt Relief:Managing Your Credit|Managing Your Credit]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: THE FAIR DEBT COLLECTION PRACTICES ACT| THE FAIR DEBT COLLECTION PRACTICES ACT]]<br />
* [[Debt Relief: Debt Test|Debt Test]]<br />
*[[Debt Relief: Credit Harrassment|Credit Harrassment]]<br />
*[[Debt Relief: Sample Cease and Desist Letter|Sample Cease and Desist Letter]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:_Sample_Cease_and_Desist_Letter&diff=8368Debt Relief: Sample Cease and Desist Letter2004-11-30T22:53:55Z<p>MHartley: </p>
<hr />
<div><br />
Your Name<br />
Your Address<br />
City, State ZIP<br />
<br />
(Sent via Certified Mail with Return Receipt)<br />
<br />
Date:<br />
<br />
Re: Account #<br />
<br />
Collection Agency<br />
Address<br />
City, State ZIP<br />
<br />
Pursuant to the Fair Debt Collection Practices Act, 15 U. S. C. section 805., you are hereby notified to cease and desist all further communication with me in regard to the referenced debt.<br />
<br />
Failure to abide by this law will result in a complaint being filed against you with the Federal Trade Commission, the Attorney General of both your state and mine, and also your own company management. I also reserve the right to file suit against you for any future violations of this law. I will record any phone calls if you fail to comply with this cease and desist.<br />
<br />
Sincerely,<br />
<br />
<br />
Your Name</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2161Debt Relief2004-11-30T22:47:10Z<p>MHartley: /* Resources */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Debt Management|Debt Management]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
*[[Debt Relief:Managing Your Credit|Managing Your Credit]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: THE FAIR DEBT COLLECTION PRACTICES ACT| THE FAIR DEBT COLLECTION PRACTICES ACT]]<br />
* [[Debt Relief: Debt Test|Debt Test]]<br />
*[[Debt Relief: Credit Harrassment|Credit Harrassment]]<br />
*[[Debt Relief: Sample Cease and Desist Letter|Sample Cease and Desist Letter]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:_Credit_Harrassment&diff=2167Debt Relief: Credit Harrassment2004-11-30T22:43:05Z<p>MHartley: </p>
<hr />
<div>Creditor Harassment<br />
Know Your Rights With Creditors<br />
<br />
<br />
Are you being harassed by collection agencies?<br />
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 Fair Debt Collection Act.<br />
<br />
How can I protect myself from harassment?<br />
Asking a collector to stop calling should be effective in most cases. However, a 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.<br />
<br />
Can I send a Cease and Desist letter to my creditor?<br />
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.<br />
<br />
Fair Debt Collection Practices Act<br />
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: <br />
• Harass, oppress, abuse, or publish lists of consumer who refuse payment <br />
• Use profane language <br />
• Repeatedly use the telephone to badger someone <br />
• Give false information <br />
• Imply they are attorneys, government representatives, or work for a credit bureau <br />
• Insinuate you have committed a crime <br />
• Falsely suggest they work for a credit bureau <br />
• Misinterpret the debt amount <br />
• Submit false information about you to anyone (including credit bureaus) <br />
• Indicate sent forms are from the court or government agency when they are not <br />
• Participate in unfair practices when Obtain amounts greater or less than debt amount (unless state laws permit change)collecting debt <br />
• Deposit a post-dated check prematurely <br />
• Use deception to make a debtor accept collect call <br />
• Threaten to take property (unless done legally) <br />
• Contact via postcard<br />
Tips for success<br />
• Address the letter to the collection agency, not the original creditor <br />
• Use the physical address for the agency, not a PO Box <br />
• Send the letter Certified Mail - Return Receipt to ensure they receive it <br />
• Keep a copy of the letter and receipt for your records<br />
What can I do if the law has been violated?<br />
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.<br />
<br />
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.</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2155Debt Relief2004-11-30T22:41:11Z<p>MHartley: /* Resources */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
* [[Debt Relief:Primary Research Results | Primary Research Results]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Debt Management|Debt Management]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
*[[Debt Relief:Managing Your Credit|Managing Your Credit]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]<br />
* [[Debt Relief: Research Reports]]<br />
* [[Debt Relief: THE FAIR DEBT COLLECTION PRACTICES ACT| THE FAIR DEBT COLLECTION PRACTICES ACT]]<br />
* [[Debt Relief: Debt Test|Debt Test]]<br />
*[[Debt Relief: Credit Harrassment|Credit Harrassment]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:_Credit_Card_Companies_Offers_Consolidation&diff=8333Debt Relief: Credit Card Companies Offers Consolidation2004-11-24T23:25:49Z<p>MHartley: </p>
<hr />
<div>[[Debt Relief | Debt Relief Home Page]]<br />
<br />
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. <br />
<br />
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.</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:Definitions&diff=2209Debt Relief:Definitions2004-11-24T23:22:12Z<p>MHartley: /* Beacon or Credit Score */</p>
<hr />
<div>==Definitions and Common Terms==<br />
[[Debt Relief | Debt Relief Home Page]] | [[Debt Relief: Bankruptcy| Bankruptcy]]<br />
===Bankruptcy===<br />
*Bankruptcy is a court case. It is used when a person cannot pay his or her bills. It helps a person get a fresh financial start. All bankruptcy cases are handled in a federal court. When the debtor exceeds his or her ability to pay, the debtor may file a petition with the bankruptcy court for voluntary bankruptcy. '''It is wise to have an attorney help you decide whether bankruptcy is the best way for you to handle your situation.''' <br />
The two most common types of bankruptcy filed by individuals and businesses are: Chapter 7 bankruptcy and Chapter 13 bankruptcy.<br />
<br />
*'''Chapter 7 bankruptcy'''-involves the liquidation of all your assets that are not exempt from the bankruptcy settlement. <br />
*'''Chapter 13 bankruptcy'''-is a court-ordered and approved repayment plan to your creditors.<br />
<br />
===Beacon or Credit Score===<br />
* Points kept on file by credit reporting agencies that indicate how much debt a person has; higher scores are ideal. Low scores indicate an unfavorable credit history.<br />
<br />
===Credit Reports===<br />
*Credit reports contain information about where you work, live, and your bill paying habits. Credit Reporting Agencies are companies that gather and sell information concerning your credit history to various businesses. This credit history is sold in the form of a credit report. The Fair Credit Reporting Act (FCRA), enforced by the Federal Trade Commission, is designed to promote accuracy and ensure the privacy of the information used in credit reports. Under this act, Credit Reporting Agencies must furnish correct and complete information to businesses to use in evaluating your applications for credit, insurance or a job.<br />
<br />
===Debt===<br />
* Liability; money owed<br />
<br />
===Debt Consolidation===<br />
*The process of combining all debt into one sum and having only one payment. This may be helpful when there are multiple credit cards with high interest rates. In most cases payments are lowered and interest rates are reduced<br />
<br />
===Garnishee or Garnishment===<br />
*A creditor can legally take money from a debtor's paycheck.<br />
<br />
===Insolvent===<br />
* Unable to meet debts or discharge liabilities.<br />
<br />
===Liens===<br />
*The creditor can legally claim the property of the debtor by placing a lien on the property until the debt is paid.<br />
<br />
===Liquidation===<br />
* A debtor may be legally ordered to sell all assets in order to settle debts.<br />
<br />
===Secured Credit===<br />
* Where a deposit is made to the credit supplying company to cover any expenses or purchases made with the credit. Often times calling it a savings account for credit. A limit is then placed on the credit issued for the amount of the deposit paid.<br />
<br />
===Sue or suit===<br />
* The creditor can take legal action to get the money owed<br />
<br />
===Unsecured Credit Card===<br />
* A credit card where a security deposit is not required to open the credit account.</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:_Credit_Card_Companies_Offers_Consolidation&diff=2146Debt Relief: Credit Card Companies Offers Consolidation2004-11-20T00:23:13Z<p>MHartley: </p>
<hr />
<div>[[Debt Relief | Debt Relief Home Page]]<br />
<br />
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, but it is now(??) a requirement. 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. <br />
<br />
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.</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:_Credit_Card_Companies_Offers_Consolidation&diff=2117Debt Relief: Credit Card Companies Offers Consolidation2004-11-20T00:20:27Z<p>MHartley: </p>
<hr />
<div>[[Debt Relief | Debt Relief Home Page]]<br />
<br />
Credit card agencies such as Visa, Discover, MasterCard, and American Express have a 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 deal with specialized debt consolidation firms. These firms take on a substantial burden of individual repayment agreements and terms as well as attendant paperwork, but it is now(??) a requirement. 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. <br />
<br />
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.</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:_Credit_Card_Companies_Offers_Consolidation&diff=2116Debt Relief: Credit Card Companies Offers Consolidation2004-11-20T00:15:19Z<p>MHartley: </p>
<hr />
<div>[[Debt Relief | Debt Relief Home Page]]<br />
<br />
Credit card agencies such as Visa, Discover, MasterCard, and American Express have a department that does essentially the same service as the various 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 would prefer that people dealt with specialized debt consolidation firms who take on the substantial burden of individual repayment agreements and terms as well as all the attendant paperwork, but it is now a requirement. MasterCard for example, prefers their card holders use a debt management service. Therefore, Mastercard does not advertise that there is 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. <br />
<br />
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.</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:Managing_Your_Credit&diff=8329Debt Relief:Managing Your Credit2004-11-19T22:34:13Z<p>MHartley: </p>
<hr />
<div>[[Debt Relief | Debt Relief Home Page]]<br />
<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and 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. <br />
<br />
# Apply for a secured card or deposit money in your checking account. <br />
# Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''. <br />
# 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. <br />
# 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. <br />
<br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#Unsecured Credit Card|unsecured credit]] cards on your own.</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:Bibliography&diff=2118Debt Relief:Bibliography2004-11-19T00:42:21Z<p>MHartley: /* Articles */</p>
<hr />
<div>[[Debt Relief | Debt Relief Home Page]]<br />
<br />
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]].<br />
<br />
== Web Resources ==<br />
<br />
=== Articles ===<br />
* [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.<br />
*[http://www.moneycentral.msn.com/content/savingsanddebt/managedebt/P36230.asp/ A 24 - hour debt reduction plan. Dunleavey, M.P. November 2004]- An interesting article offering assistance to the recent college graduate overwhelmed by secure and unsecured debt. <br />
*[http://www.moneycentral.msn.com/content/savingsanddebt/managedebt/P84133.asp/ The long, hard road back from bankruptcy] - This article gives a realistic look of what a Chapter 13 or Chapter 7 does to your credit history. The article is an overall view of how you are view as a potential customer even after the bankruptcy is discharged.<br />
*[http://www.ftc.gov/bcp/conline/pubs/credit/crdright.htm The Federal Trade Commission]- Credit and Your Consumer Rights<br />
<br />
=== Blogs ===<br />
* [http://finance.baylor.edu/weblogs/garven/ Jim Garven’s Blog] — A blog exploring the intersection of risk management, insurance, and finance.<br />
<br />
<br />
=== Credit Reporting Agencies ===<br />
View your credit report.<br />
* [http://www.transunion.com/ TransUnion] - Credit reporting agency<br />
* [http://www.equifax.com/ Equifax] - Credit reporting agency<br />
* [http://www.experian.com/ Experian] - Credit reporting agency<br />
<br />
<br />
=== Self Help ===<br />
* [http://www.debtattack.com/ Debt Attack] - Extensive information on good and bad debt and ways to get out of debt.<br />
* [http://www.familycredit.org/ Family Credit]-- A non-profit, faith-based approach to managing debt.<br />
* [http://www.debtsteps.com/ Debt Steps] — Comprehensive reviews to help you protect your financial future.<br />
* [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.<br />
* [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.<br />
*[http://consumer-debt-consolidation.com/ Debt Consolidation Help]- Consolidate your debt into one payment.<br />
* [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.<br />
* [http://www.usaweekend.com/99_issues/990822/990822finance.html/ Good debt vs. bad] - USA Weekend Magazine establishes some borrowing guidelines to avoid bad debt.<br />
*[http://promise.ecol.net/finance/bankrupt.htm Bankruptcy and Restructuring Debt] - Gives advice on the advantages and disadvantages of bankrutcy and restructuring debt.<br />
*[http://creditinfocenter.com/debt/settle_debts.shtml/ Settling Debts] - Learn ways to settle debts including dealing with creditors<br />
*[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.<br />
*[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.<br />
*[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.<br />
*[http://www.edebtfree.org/ccc.htm/ Credit Counseling]-Provides you with information on credit counseling.<br />
*[http://www.edebtfree.org/consolidation.htm Debt consolidation loans]-Provides you with information on debt consolidation.<br />
*[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<br />
*[http://www.moneycentral.msn.com/savingsanddebt/managedebt/ Your worst 3 debt consolidation moves] - If you are overwhelmed and seeking a quick outlet for relief debt consolidation can seem like the best answer. This source will allows you to view some of the consequences if you dive in without reading the fine print of debt consolidation.<br />
* [http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.htm Choosing a credit counselor]-This site gives advise on choosing a credit counselor.<br />
<br />
=== Statistics ===<br />
* [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.<br />
* Anonymous. "Graduates learn a lesson in debt management" "Credit Management" (May 2003): 12.<br />
* Oglivie, Donald G. "A view of the economy" "The Kansas Banker" 89.1 (Jan 1999): 20.<br />
* Mapother, William R. "Taming Consumer Debt" "Credit Union Magazine" 70.4 (Apr 2004): 72.<br />
<br />
== Print Resources ==<br />
=== Articles ===<br />
* Allen, Mary and Chantal Vaillancourt. “Class of 2000: Student Loans.” ''Canadian Social Trends'' 74 (2004): 18.<br />
*Hynes, Richard M. "Overoptimism and Overborrowing." ''Bringham Young University Law Review''2004.1 (2004): 127.<br />
* Rowland, Mary. "Good Credit gone Bad?" ''NEA Today'' 16.5 (Jan 1998): 38.<br />
*Sandberg, Erica. "The Value of Financial Planning and Debt Reduction Services for Employees and Employers." ''Employee Benefits Journal'' 27.4 (2002): 37.<br />
* "Coming To Terms" ''NEA Today'' 16.5 (Jan 1998): 38.<br />
* Goldwasser, Joan; Lankford, Kimberly. "Where To Go For Help" ''Kiplinger's Personal Finance'' 55.11 (Nov 2001): 77.<br />
* Morris, Valerie. "Should You Consider Debt Consolidation" ''Essence'' 33.11 (Mar 2003): 103<br />
* Brown, Monique R. "Debt Dilemma" ''Black Enterprise'' 31.11 (Jun 2001): 326<br />
* McClannahan, Rory. "Simple Steps can curb debt, New Mexico Expert says" "Knight Ridder Tribune Business News" (Jun 2004): 1.<br />
* Lee, Karl. " Secured Credit Lines" "The Shooting Industry" 48.10 (Oct 2003): 15.<br />
* Scott, Matthew S. "Q & A: What about debt management?" "Black Enterprise" (Aug 2004): 44.<br />
* Anonymous. "7 Debt - Counseling warning signs" "Essence" 34.6 (oct 2003): 120.<br />
* Vogt, Katherine. "Climbing Out Of Debt." "American Medical News." (Feb 2004): Vol 47. pg 13.<br />
* Stav, Julie. "Scoring Good Credit." "Hispanic" (Nov 2004): Vol 17. pg 42.<br />
* Kuykendall, Lavone. "Sallie Mae Gets Into Business Of Buting Bad Debt." American Banker." (Sep 2004): Vol 169. pg 17.<br />
* Young, Gary. "Does the 'Fourth Option' Exist." "National Law Journal." (Jun 2004): Vol 26. pg 15.<br />
* Lim, Paul J. "How to improve your credit profile." U.S. News & World Report; 6/17/2002, Vol. 132 Issue 21, p42<br />
* Ryan, Mike. "Qualifying Your Collection Agency: Ask the Right Questions." Business Credit; Sep2004, Vol. 106 Issue 8, p65, 2p<br />
<br />
=== Books ===<br />
* McNaughton, Debra. ''All About Credit''. Chicago: Dearborn, 1999.<br />
* Hammond, Bob. "Life Without Debt." New Jersey: Career Press, 1995.<br />
* Leonard, Attorney Robin. "Bankruptcy." Berkley: Nolo Press, 1998.<br />
* Fisher, Sarah Young. "The Complete Idiots Guide To Personal Finance In Your 20's and 30's." Indianapolis: Alpha Books, 2002.<br />
* Heady, Robert. "The Complete Idiot's Guide to Managing Your Money." New York: Alpha Books, 1999.<br />
<br />
=== Journals ===<br />
* Cressy, Robert C. "Debt rescheduling versus bankruptcy: The creditor's decision problem." Journal of Business Finance & Accounting; Oct96, Vol. 23 Issue 8, p1141, 16p<br />
* Hynes, Richard M. "Overoptimism and Overborrowing" Brigham Young University Law Review; 2004, Vol. 2004 Issue 1, p127, 42p<br />
<br />
----<br />
<br />
[[Debt Relief]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:Bibliography&diff=2110Debt Relief:Bibliography2004-11-19T00:41:01Z<p>MHartley: /* Articles */</p>
<hr />
<div>[[Debt Relief | Debt Relief Home Page]]<br />
<br />
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]].<br />
<br />
== Web Resources ==<br />
<br />
=== Articles ===<br />
* [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.<br />
*[http://www.moneycentral.msn.com/content/savingsanddebt/managedebt/P36230.asp/ A 24 - hour debt reduction plan. Dunleavey, M.P. November 2004]- An interesting article offering assistance to the recent college graduate overwhelmed by secure and unsecured debt. <br />
*[http://www.moneycentral.msn.com/content/savingsanddebt/managedebt/P84133.asp/ The long, hard road back from bankruptcy] - This article gives a realistic look of what a Chapter 13 or Chapter 7 does to your credit history. The article is an overall view of how you are view as a potential customer even after the bankruptcy is discharged.<br />
*[http://www.ftc.gov/bcp/conline/pubs/credit/crdright.htm/ The Federal Trade Commission]- Credit and Your Consumer Rights<br />
<br />
=== Blogs ===<br />
* [http://finance.baylor.edu/weblogs/garven/ Jim Garven’s Blog] — A blog exploring the intersection of risk management, insurance, and finance.<br />
<br />
<br />
=== Credit Reporting Agencies ===<br />
View your credit report.<br />
* [http://www.transunion.com/ TransUnion] - Credit reporting agency<br />
* [http://www.equifax.com/ Equifax] - Credit reporting agency<br />
* [http://www.experian.com/ Experian] - Credit reporting agency<br />
<br />
<br />
=== Self Help ===<br />
* [http://www.debtattack.com/ Debt Attack] - Extensive information on good and bad debt and ways to get out of debt.<br />
* [http://www.familycredit.org/ Family Credit]-- A non-profit, faith-based approach to managing debt.<br />
* [http://www.debtsteps.com/ Debt Steps] — Comprehensive reviews to help you protect your financial future.<br />
* [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.<br />
* [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.<br />
*[http://consumer-debt-consolidation.com/ Debt Consolidation Help]- Consolidate your debt into one payment.<br />
* [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.<br />
* [http://www.usaweekend.com/99_issues/990822/990822finance.html/ Good debt vs. bad] - USA Weekend Magazine establishes some borrowing guidelines to avoid bad debt.<br />
*[http://promise.ecol.net/finance/bankrupt.htm Bankruptcy and Restructuring Debt] - Gives advice on the advantages and disadvantages of bankrutcy and restructuring debt.<br />
*[http://creditinfocenter.com/debt/settle_debts.shtml/ Settling Debts] - Learn ways to settle debts including dealing with creditors<br />
*[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.<br />
*[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.<br />
*[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.<br />
*[http://www.edebtfree.org/ccc.htm/ Credit Counseling]-Provides you with information on credit counseling.<br />
*[http://www.edebtfree.org/consolidation.htm Debt consolidation loans]-Provides you with information on debt consolidation.<br />
*[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<br />
*[http://www.moneycentral.msn.com/savingsanddebt/managedebt/ Your worst 3 debt consolidation moves] - If you are overwhelmed and seeking a quick outlet for relief debt consolidation can seem like the best answer. This source will allows you to view some of the consequences if you dive in without reading the fine print of debt consolidation.<br />
* [http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.htm Choosing a credit counselor]-This site gives advise on choosing a credit counselor.<br />
<br />
=== Statistics ===<br />
* [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.<br />
* Anonymous. "Graduates learn a lesson in debt management" "Credit Management" (May 2003): 12.<br />
* Oglivie, Donald G. "A view of the economy" "The Kansas Banker" 89.1 (Jan 1999): 20.<br />
* Mapother, William R. "Taming Consumer Debt" "Credit Union Magazine" 70.4 (Apr 2004): 72.<br />
<br />
== Print Resources ==<br />
=== Articles ===<br />
* Allen, Mary and Chantal Vaillancourt. “Class of 2000: Student Loans.” ''Canadian Social Trends'' 74 (2004): 18.<br />
*Hynes, Richard M. "Overoptimism and Overborrowing." ''Bringham Young University Law Review''2004.1 (2004): 127.<br />
* Rowland, Mary. "Good Credit gone Bad?" ''NEA Today'' 16.5 (Jan 1998): 38.<br />
*Sandberg, Erica. "The Value of Financial Planning and Debt Reduction Services for Employees and Employers." ''Employee Benefits Journal'' 27.4 (2002): 37.<br />
* "Coming To Terms" ''NEA Today'' 16.5 (Jan 1998): 38.<br />
* Goldwasser, Joan; Lankford, Kimberly. "Where To Go For Help" ''Kiplinger's Personal Finance'' 55.11 (Nov 2001): 77.<br />
* Morris, Valerie. "Should You Consider Debt Consolidation" ''Essence'' 33.11 (Mar 2003): 103<br />
* Brown, Monique R. "Debt Dilemma" ''Black Enterprise'' 31.11 (Jun 2001): 326<br />
* McClannahan, Rory. "Simple Steps can curb debt, New Mexico Expert says" "Knight Ridder Tribune Business News" (Jun 2004): 1.<br />
* Lee, Karl. " Secured Credit Lines" "The Shooting Industry" 48.10 (Oct 2003): 15.<br />
* Scott, Matthew S. "Q & A: What about debt management?" "Black Enterprise" (Aug 2004): 44.<br />
* Anonymous. "7 Debt - Counseling warning signs" "Essence" 34.6 (oct 2003): 120.<br />
* Vogt, Katherine. "Climbing Out Of Debt." "American Medical News." (Feb 2004): Vol 47. pg 13.<br />
* Stav, Julie. "Scoring Good Credit." "Hispanic" (Nov 2004): Vol 17. pg 42.<br />
* Kuykendall, Lavone. "Sallie Mae Gets Into Business Of Buting Bad Debt." American Banker." (Sep 2004): Vol 169. pg 17.<br />
* Young, Gary. "Does the 'Fourth Option' Exist." "National Law Journal." (Jun 2004): Vol 26. pg 15.<br />
* Lim, Paul J. "How to improve your credit profile." U.S. News & World Report; 6/17/2002, Vol. 132 Issue 21, p42<br />
* Ryan, Mike. "Qualifying Your Collection Agency: Ask the Right Questions." Business Credit; Sep2004, Vol. 106 Issue 8, p65, 2p<br />
<br />
=== Books ===<br />
* McNaughton, Debra. ''All About Credit''. Chicago: Dearborn, 1999.<br />
* Hammond, Bob. "Life Without Debt." New Jersey: Career Press, 1995.<br />
* Leonard, Attorney Robin. "Bankruptcy." Berkley: Nolo Press, 1998.<br />
* Fisher, Sarah Young. "The Complete Idiots Guide To Personal Finance In Your 20's and 30's." Indianapolis: Alpha Books, 2002.<br />
* Heady, Robert. "The Complete Idiot's Guide to Managing Your Money." New York: Alpha Books, 1999.<br />
<br />
=== Journals ===<br />
* Cressy, Robert C. "Debt rescheduling versus bankruptcy: The creditor's decision problem." Journal of Business Finance & Accounting; Oct96, Vol. 23 Issue 8, p1141, 16p<br />
* Hynes, Richard M. "Overoptimism and Overborrowing" Brigham Young University Law Review; 2004, Vol. 2004 Issue 1, p127, 42p<br />
<br />
----<br />
<br />
[[Debt Relief]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:Bibliography&diff=2109Debt Relief:Bibliography2004-11-19T00:38:17Z<p>MHartley: /* Articles */</p>
<hr />
<div>[[Debt Relief | Debt Relief Home Page]]<br />
<br />
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]].<br />
<br />
== Web Resources ==<br />
<br />
=== Articles ===<br />
* [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.<br />
*[http://www.moneycentral.msn.com/content/savingsanddebt/managedebt/P36230.asp/ A 24 - hour debt reduction plan. Dunleavey, M.P. November 2004]- An interesting article offering assistance to the recent college graduate overwhelmed by secure and unsecured debt. <br />
*[http://www.moneycentral.msn.com/content/savingsanddebt/managedebt/P84133.asp/ The long, hard road back from bankruptcy] - This article gives a realistic look of what a Chapter 13 or Chapter 7 does to your credit history. The article is an overall view of how you are view as a potential customer even after the bankruptcy is discharged.<br />
*[http://ftc.gov/bcp/conline/pubs/credit/crdright.htm/ The Federal Trade Commission]- Credit and Your Consumer Rights<br />
<br />
=== Blogs ===<br />
* [http://finance.baylor.edu/weblogs/garven/ Jim Garven’s Blog] — A blog exploring the intersection of risk management, insurance, and finance.<br />
<br />
<br />
=== Credit Reporting Agencies ===<br />
View your credit report.<br />
* [http://www.transunion.com/ TransUnion] - Credit reporting agency<br />
* [http://www.equifax.com/ Equifax] - Credit reporting agency<br />
* [http://www.experian.com/ Experian] - Credit reporting agency<br />
<br />
<br />
=== Self Help ===<br />
* [http://www.debtattack.com/ Debt Attack] - Extensive information on good and bad debt and ways to get out of debt.<br />
* [http://www.familycredit.org/ Family Credit]-- A non-profit, faith-based approach to managing debt.<br />
* [http://www.debtsteps.com/ Debt Steps] — Comprehensive reviews to help you protect your financial future.<br />
* [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.<br />
* [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.<br />
*[http://consumer-debt-consolidation.com/ Debt Consolidation Help]- Consolidate your debt into one payment.<br />
* [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.<br />
* [http://www.usaweekend.com/99_issues/990822/990822finance.html/ Good debt vs. bad] - USA Weekend Magazine establishes some borrowing guidelines to avoid bad debt.<br />
*[http://promise.ecol.net/finance/bankrupt.htm Bankruptcy and Restructuring Debt] - Gives advice on the advantages and disadvantages of bankrutcy and restructuring debt.<br />
*[http://creditinfocenter.com/debt/settle_debts.shtml/ Settling Debts] - Learn ways to settle debts including dealing with creditors<br />
*[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.<br />
*[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.<br />
*[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.<br />
*[http://www.edebtfree.org/ccc.htm/ Credit Counseling]-Provides you with information on credit counseling.<br />
*[http://www.edebtfree.org/consolidation.htm Debt consolidation loans]-Provides you with information on debt consolidation.<br />
*[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<br />
*[http://www.moneycentral.msn.com/savingsanddebt/managedebt/ Your worst 3 debt consolidation moves] - If you are overwhelmed and seeking a quick outlet for relief debt consolidation can seem like the best answer. This source will allows you to view some of the consequences if you dive in without reading the fine print of debt consolidation.<br />
* [http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.htm Choosing a credit counselor]-This site gives advise on choosing a credit counselor.<br />
<br />
=== Statistics ===<br />
* [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.<br />
* Anonymous. "Graduates learn a lesson in debt management" "Credit Management" (May 2003): 12.<br />
* Oglivie, Donald G. "A view of the economy" "The Kansas Banker" 89.1 (Jan 1999): 20.<br />
* Mapother, William R. "Taming Consumer Debt" "Credit Union Magazine" 70.4 (Apr 2004): 72.<br />
<br />
== Print Resources ==<br />
=== Articles ===<br />
* Allen, Mary and Chantal Vaillancourt. “Class of 2000: Student Loans.” ''Canadian Social Trends'' 74 (2004): 18.<br />
*Hynes, Richard M. "Overoptimism and Overborrowing." ''Bringham Young University Law Review''2004.1 (2004): 127.<br />
* Rowland, Mary. "Good Credit gone Bad?" ''NEA Today'' 16.5 (Jan 1998): 38.<br />
*Sandberg, Erica. "The Value of Financial Planning and Debt Reduction Services for Employees and Employers." ''Employee Benefits Journal'' 27.4 (2002): 37.<br />
* "Coming To Terms" ''NEA Today'' 16.5 (Jan 1998): 38.<br />
* Goldwasser, Joan; Lankford, Kimberly. "Where To Go For Help" ''Kiplinger's Personal Finance'' 55.11 (Nov 2001): 77.<br />
* Morris, Valerie. "Should You Consider Debt Consolidation" ''Essence'' 33.11 (Mar 2003): 103<br />
* Brown, Monique R. "Debt Dilemma" ''Black Enterprise'' 31.11 (Jun 2001): 326<br />
* McClannahan, Rory. "Simple Steps can curb debt, New Mexico Expert says" "Knight Ridder Tribune Business News" (Jun 2004): 1.<br />
* Lee, Karl. " Secured Credit Lines" "The Shooting Industry" 48.10 (Oct 2003): 15.<br />
* Scott, Matthew S. "Q & A: What about debt management?" "Black Enterprise" (Aug 2004): 44.<br />
* Anonymous. "7 Debt - Counseling warning signs" "Essence" 34.6 (oct 2003): 120.<br />
* Vogt, Katherine. "Climbing Out Of Debt." "American Medical News." (Feb 2004): Vol 47. pg 13.<br />
* Stav, Julie. "Scoring Good Credit." "Hispanic" (Nov 2004): Vol 17. pg 42.<br />
* Kuykendall, Lavone. "Sallie Mae Gets Into Business Of Buting Bad Debt." American Banker." (Sep 2004): Vol 169. pg 17.<br />
* Young, Gary. "Does the 'Fourth Option' Exist." "National Law Journal." (Jun 2004): Vol 26. pg 15.<br />
* Lim, Paul J. "How to improve your credit profile." U.S. News & World Report; 6/17/2002, Vol. 132 Issue 21, p42<br />
* Ryan, Mike. "Qualifying Your Collection Agency: Ask the Right Questions." Business Credit; Sep2004, Vol. 106 Issue 8, p65, 2p<br />
<br />
=== Books ===<br />
* McNaughton, Debra. ''All About Credit''. Chicago: Dearborn, 1999.<br />
* Hammond, Bob. "Life Without Debt." New Jersey: Career Press, 1995.<br />
* Leonard, Attorney Robin. "Bankruptcy." Berkley: Nolo Press, 1998.<br />
* Fisher, Sarah Young. "The Complete Idiots Guide To Personal Finance In Your 20's and 30's." Indianapolis: Alpha Books, 2002.<br />
* Heady, Robert. "The Complete Idiot's Guide to Managing Your Money." New York: Alpha Books, 1999.<br />
<br />
=== Journals ===<br />
* Cressy, Robert C. "Debt rescheduling versus bankruptcy: The creditor's decision problem." Journal of Business Finance & Accounting; Oct96, Vol. 23 Issue 8, p1141, 16p<br />
* Hynes, Richard M. "Overoptimism and Overborrowing" Brigham Young University Law Review; 2004, Vol. 2004 Issue 1, p127, 42p<br />
<br />
----<br />
<br />
[[Debt Relief]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:Bibliography&diff=2108Debt Relief:Bibliography2004-11-19T00:35:01Z<p>MHartley: /* Articles */</p>
<hr />
<div>[[Debt Relief | Debt Relief Home Page]]<br />
<br />
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]].<br />
<br />
== Web Resources ==<br />
<br />
=== Articles ===<br />
* [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.<br />
*[http://www.moneycentral.msn.com/content/savingsanddebt/managedebt/P36230.asp/ A 24 - hour debt reduction plan. Dunleavey, M.P. November 2004]- An interesting article offering assistance to the recent college graduate overwhelmed by secure and unsecured debt. <br />
*[http://www.moneycentral.msn.com/content/savingsanddebt/managedebt/P84133.asp/ The long, hard road back from bankruptcy] - This article gives a realistic look of what a Chapter 13 or Chapter 7 does to your credit history. The article is an overall view of how you are view as a potential customer even after the bankruptcy is discharged.<br />
*<br />
[http://ftc.gov/bcp/conline/pubs/credit/crdright.htm/ The Federal Trade Commission]<br />
<br />
=== Blogs ===<br />
* [http://finance.baylor.edu/weblogs/garven/ Jim Garven’s Blog] — A blog exploring the intersection of risk management, insurance, and finance.<br />
<br />
<br />
=== Credit Reporting Agencies ===<br />
View your credit report.<br />
* [http://www.transunion.com/ TransUnion] - Credit reporting agency<br />
* [http://www.equifax.com/ Equifax] - Credit reporting agency<br />
* [http://www.experian.com/ Experian] - Credit reporting agency<br />
<br />
<br />
=== Self Help ===<br />
* [http://www.debtattack.com/ Debt Attack] - Extensive information on good and bad debt and ways to get out of debt.<br />
* [http://www.familycredit.org/ Family Credit]-- A non-profit, faith-based approach to managing debt.<br />
* [http://www.debtsteps.com/ Debt Steps] — Comprehensive reviews to help you protect your financial future.<br />
* [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.<br />
* [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.<br />
*[http://consumer-debt-consolidation.com/ Debt Consolidation Help]- Consolidate your debt into one payment.<br />
* [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.<br />
* [http://www.usaweekend.com/99_issues/990822/990822finance.html/ Good debt vs. bad] - USA Weekend Magazine establishes some borrowing guidelines to avoid bad debt.<br />
*[http://promise.ecol.net/finance/bankrupt.htm Bankruptcy and Restructuring Debt] - Gives advice on the advantages and disadvantages of bankrutcy and restructuring debt.<br />
*[http://creditinfocenter.com/debt/settle_debts.shtml/ Settling Debts] - Learn ways to settle debts including dealing with creditors<br />
*[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.<br />
*[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.<br />
*[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.<br />
*[http://www.edebtfree.org/ccc.htm/ Credit Counseling]-Provides you with information on credit counseling.<br />
*[http://www.edebtfree.org/consolidation.htm Debt consolidation loans]-Provides you with information on debt consolidation.<br />
*[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<br />
*[http://www.moneycentral.msn.com/savingsanddebt/managedebt/ Your worst 3 debt consolidation moves] - If you are overwhelmed and seeking a quick outlet for relief debt consolidation can seem like the best answer. This source will allows you to view some of the consequences if you dive in without reading the fine print of debt consolidation.<br />
* [http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.htm Choosing a credit counselor]-This site gives advise on choosing a credit counselor.<br />
<br />
=== Statistics ===<br />
* [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.<br />
* Anonymous. "Graduates learn a lesson in debt management" "Credit Management" (May 2003): 12.<br />
* Oglivie, Donald G. "A view of the economy" "The Kansas Banker" 89.1 (Jan 1999): 20.<br />
* Mapother, William R. "Taming Consumer Debt" "Credit Union Magazine" 70.4 (Apr 2004): 72.<br />
<br />
== Print Resources ==<br />
=== Articles ===<br />
* Allen, Mary and Chantal Vaillancourt. “Class of 2000: Student Loans.” ''Canadian Social Trends'' 74 (2004): 18.<br />
*Hynes, Richard M. "Overoptimism and Overborrowing." ''Bringham Young University Law Review''2004.1 (2004): 127.<br />
* Rowland, Mary. "Good Credit gone Bad?" ''NEA Today'' 16.5 (Jan 1998): 38.<br />
*Sandberg, Erica. "The Value of Financial Planning and Debt Reduction Services for Employees and Employers." ''Employee Benefits Journal'' 27.4 (2002): 37.<br />
* "Coming To Terms" ''NEA Today'' 16.5 (Jan 1998): 38.<br />
* Goldwasser, Joan; Lankford, Kimberly. "Where To Go For Help" ''Kiplinger's Personal Finance'' 55.11 (Nov 2001): 77.<br />
* Morris, Valerie. "Should You Consider Debt Consolidation" ''Essence'' 33.11 (Mar 2003): 103<br />
* Brown, Monique R. "Debt Dilemma" ''Black Enterprise'' 31.11 (Jun 2001): 326<br />
* McClannahan, Rory. "Simple Steps can curb debt, New Mexico Expert says" "Knight Ridder Tribune Business News" (Jun 2004): 1.<br />
* Lee, Karl. " Secured Credit Lines" "The Shooting Industry" 48.10 (Oct 2003): 15.<br />
* Scott, Matthew S. "Q & A: What about debt management?" "Black Enterprise" (Aug 2004): 44.<br />
* Anonymous. "7 Debt - Counseling warning signs" "Essence" 34.6 (oct 2003): 120.<br />
* Vogt, Katherine. "Climbing Out Of Debt." "American Medical News." (Feb 2004): Vol 47. pg 13.<br />
* Stav, Julie. "Scoring Good Credit." "Hispanic" (Nov 2004): Vol 17. pg 42.<br />
* Kuykendall, Lavone. "Sallie Mae Gets Into Business Of Buting Bad Debt." American Banker." (Sep 2004): Vol 169. pg 17.<br />
* Young, Gary. "Does the 'Fourth Option' Exist." "National Law Journal." (Jun 2004): Vol 26. pg 15.<br />
* Lim, Paul J. "How to improve your credit profile." U.S. News & World Report; 6/17/2002, Vol. 132 Issue 21, p42<br />
* Ryan, Mike. "Qualifying Your Collection Agency: Ask the Right Questions." Business Credit; Sep2004, Vol. 106 Issue 8, p65, 2p<br />
<br />
=== Books ===<br />
* McNaughton, Debra. ''All About Credit''. Chicago: Dearborn, 1999.<br />
* Hammond, Bob. "Life Without Debt." New Jersey: Career Press, 1995.<br />
* Leonard, Attorney Robin. "Bankruptcy." Berkley: Nolo Press, 1998.<br />
* Fisher, Sarah Young. "The Complete Idiots Guide To Personal Finance In Your 20's and 30's." Indianapolis: Alpha Books, 2002.<br />
* Heady, Robert. "The Complete Idiot's Guide to Managing Your Money." New York: Alpha Books, 1999.<br />
<br />
=== Journals ===<br />
* Cressy, Robert C. "Debt rescheduling versus bankruptcy: The creditor's decision problem." Journal of Business Finance & Accounting; Oct96, Vol. 23 Issue 8, p1141, 16p<br />
* Hynes, Richard M. "Overoptimism and Overborrowing" Brigham Young University Law Review; 2004, Vol. 2004 Issue 1, p127, 42p<br />
<br />
----<br />
<br />
[[Debt Relief]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:Definitions&diff=2121Debt Relief:Definitions2004-11-18T22:31:25Z<p>MHartley: /* Bankruptcy */</p>
<hr />
<div>==Definitions and Common Terms==<br />
[[Debt Relief | Debt Relief Home Page]] | [[Debt Relief: Bankruptcy| Bankruptcy]]<br />
===Bankruptcy===<br />
*Bankruptcy is a court case. It is used when a person cannot pay his or her bills. It helps a person get a fresh financial start. All bankruptcy cases are handled in a federal court. When the debtor exceeds his or her ability to pay, the debtor may file a petition with the bankruptcy court for voluntary bankruptcy. '''It is wise to have an attorney help you decide whether bankruptcy is the best way for you to handle your situation.''' <br />
The two most common types of bankruptcy filed by individuals and businesses are: Chapter 7 bankruptcy and Chapter 13 bankruptcy.<br />
<br />
*'''Chapter 7 bankruptcy'''-involves the liquidation of all your assets that are not exempt from the bankruptcy settlement. <br />
*'''Chapter 13 bankruptcy'''-is a court-ordered and approved repayment plan to your creditors.<br />
<br />
===Beacon or Credit Score===<br />
* Points kept on file by credit reporting agencies that indicate how much debt a person has; higher scores are ideal. Low scores indicate an unfavorable credit history.<br />
<br />
===Debt===<br />
* Liability; money owed<br />
<br />
===Debt Consolidation===<br />
*The process of combining all debt into one sum and having only one payment. This may be helpful when there are multiple credit cards with high interest rates. In most cases payments are lowered and interest rates are reduced<br />
<br />
===Garnishee or Garnishment===<br />
*A creditor can legally take money from a debtor's paycheck.<br />
<br />
===Insolvent===<br />
* Unable to meet debts or discharge liabilities.<br />
<br />
===Liens===<br />
*The creditor can legally claim the property of the debtor by placing a lien on the property until the debt is paid.<br />
<br />
===Liquidation===<br />
* A debtor may be legally ordered to sell all assets in order to settle debts.<br />
<br />
===Secured Credit===<br />
* Where a deposit is made to the credit supplying company to cover any expenses or purchases made with the credit. Often times calling it a savings account for credit. A limit is then placed on the credit issued for the amount of the deposit paid.<br />
<br />
===Sue or suit===<br />
* The creditor can take legal action to get the money owed<br />
<br />
===Unsecured Credit Card===<br />
* A credit card where a security deposit is not required to open the credit account.<br />
<br />
===Credit Reports===<br />
*Credit reports contain information about where you work, live, and your bill paying habits. Credit Reporting Agencies are companies that gather and sell information concerning your credit history to various businesses. This credit history is sold in the form of a credit report. The Fair Credit Reporting Act (FCRA), enforced by the Federal Trade Commission, is designed to promote accuracy and ensure the privacy of the information used in credit reports. Under this act, Credit Reporting Agencies must furnish correct and complete information to businesses to use in evaluating your applications for credit, insurance or a job.</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:Definitions&diff=2097Debt Relief:Definitions2004-11-18T22:29:53Z<p>MHartley: /* Credit Reports */</p>
<hr />
<div>==Definitions and Common Terms==<br />
[[Debt Relief | Debt Relief Home Page]] | [[Debt Relief: Bankruptcy| Bankruptcy]]<br />
===Bankruptcy===<br />
*Bankruptcy is a court case. It is used when a person cannot pay his or her bills. It helps a person get a fresh financial start. All bankruptcy cases are handled in a federal court. When the debtor exceeds his or her ability to pay, the debtor may file a petition with the bankruptcy court for voluntary bankruptcy. It is wise to have an attorney help you decide whether bankruptcy is the best way for you to handle your situation. <br />
<br />
The two most common types of bankruptcy filed by individuals and businesses are: Chapter 7 bankruptcy and Chapter 13 bankruptcy.<br />
<br />
*'''Chapter 7 bankruptcy'''-involves the liquidation of all your assets that are not exempt from the bankruptcy settlement. <br />
*'''Chapter 13 bankruptcy'''-is a court-ordered and approved repayment plan to your creditors.<br />
<br />
===Beacon or Credit Score===<br />
* Points kept on file by credit reporting agencies that indicate how much debt a person has; higher scores are ideal. Low scores indicate an unfavorable credit history.<br />
<br />
===Debt===<br />
* Liability; money owed<br />
<br />
===Debt Consolidation===<br />
*The process of combining all debt into one sum and having only one payment. This may be helpful when there are multiple credit cards with high interest rates. In most cases payments are lowered and interest rates are reduced<br />
<br />
===Garnishee or Garnishment===<br />
*A creditor can legally take money from a debtor's paycheck.<br />
<br />
===Insolvent===<br />
* Unable to meet debts or discharge liabilities.<br />
<br />
===Liens===<br />
*The creditor can legally claim the property of the debtor by placing a lien on the property until the debt is paid.<br />
<br />
===Liquidation===<br />
* A debtor may be legally ordered to sell all assets in order to settle debts.<br />
<br />
===Secured Credit===<br />
* Where a deposit is made to the credit supplying company to cover any expenses or purchases made with the credit. Often times calling it a savings account for credit. A limit is then placed on the credit issued for the amount of the deposit paid.<br />
<br />
===Sue or suit===<br />
* The creditor can take legal action to get the money owed<br />
<br />
===Unsecured Credit Card===<br />
* A credit card where a security deposit is not required to open the credit account.<br />
<br />
===Credit Reports===<br />
*Credit reports contain information about where you work, live, and your bill paying habits. Credit Reporting Agencies are companies that gather and sell information concerning your credit history to various businesses. This credit history is sold in the form of a credit report. The Fair Credit Reporting Act (FCRA), enforced by the Federal Trade Commission, is designed to promote accuracy and ensure the privacy of the information used in credit reports. Under this act, Credit Reporting Agencies must furnish correct and complete information to businesses to use in evaluating your applications for credit, insurance or a job.</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief&diff=2111Debt Relief2004-11-18T22:27:13Z<p>MHartley: /* Introduction */</p>
<hr />
<div>== Introduction ==<br />
[[Image:Debtrelief.jpg|right|Debt Relief]] <br />
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 ours 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 going 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. <br />
<br />
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#Consolidation| debt consolidation]], [[Debt Relief:Definitions#credit reports | credit reports]] to [[Debt Relief:Definitions#bankruptcy | bankruptcy]], and more.<br />
<br />
== Project Documents ==<br />
<br />
* [[Debt Relief:Proposal | Proposal]]<br />
* [[Debt Relief:Primary Research Proposal | Primary Research Proposal]]<br />
* [[Debt Relief:Survey | Survey SAMPLE]]<br />
<br />
== Resources ==<br />
<br />
* [[Debt Relief:Bibliography | Bibliography]]<br />
* [[Debt Relief:Debt Consolidation | Debt Consolidation]]<br />
* [[Debt Relief:Collection Agency | Collection Agency]]<br />
* [[Professional Communication]]<br />
* [[Debt Relief: Bankruptcy|Bankruptcy]]<br />
* [[Debt Relief:Debt Management|Debt Management]]<br />
* [[Debt Relief:Definitions|Definitions and Common Terms]]<br />
*[[Debt Relief:Managing Your Credit|Managing Your Credit]]<br />
* [[Debt Relief: Credit Card Companies Offers Consolidation| Credit Card Companies Offer Consolidation]]<br />
* [[Debt Relief: Collection Laws|Collection Laws]]</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:Definitions&diff=2096Debt Relief:Definitions2004-11-18T01:29:18Z<p>MHartley: /* Definitions and Common Terms */</p>
<hr />
<div>==Definitions and Common Terms==<br />
[[Debt Relief | Debt Relief Home Page]] | [[Debt Relief: Bankruptcy| Bankruptcy]]<br />
===Bankruptcy===<br />
*Bankruptcy is a court case. It is used when a person cannot pay his or her bills. It helps a person get a fresh financial start. All bankruptcy cases are handled in a federal court. When the debtor exceeds his or her ability to pay, the debtor may file a petition with the bankruptcy court for voluntary bankruptcy. It is wise to have an attorney help you decide whether bankruptcy is the best way for you to handle your situation. <br />
<br />
The two most common types of bankruptcy filed by individuals and businesses are: Chapter 7 bankruptcy and Chapter 13 bankruptcy.<br />
<br />
*'''Chapter 7 bankruptcy'''-involves the liquidation of all your assets that are not exempt from the bankruptcy settlement. <br />
*'''Chapter 13 bankruptcy'''-is a court-ordered and approved repayment plan to your creditors.<br />
<br />
===Beacon or Credit Score===<br />
* Points kept on file by credit reporting agencies that indicate how much debt a person has; higher scores are ideal. Low scores indicate an unfavorable credit history.<br />
<br />
===Debt===<br />
* Liability; money owed<br />
<br />
===Debt Consolidation===<br />
*The process of combining all debt into one sum and having only one payment. This may be helpful when there are multiple credit cards with high interest rates. In most cases payments are lowered and interest rates are reduced<br />
<br />
===Garnishee or Garnishment===<br />
*A creditor can legally take money from a debtor's paycheck.<br />
<br />
===Insolvent===<br />
* Unable to meet debts or discharge liabilities.<br />
<br />
===Liens===<br />
*The creditor can legally claim the property of the debtor by placing a lien on the property until the debt is paid.<br />
<br />
===Liquidation===<br />
* A debtor may be legally ordered to sell all assets in order to settle debts.<br />
<br />
===Secured Credit===<br />
* Where a deposit is made to the credit supplying company to cover any expenses or purchases made with the credit. Often times calling it a savings account for credit. A limit is then placed on the credit issued for the amount of the deposit paid.<br />
<br />
===Sue or suit===<br />
* The creditor can take legal action to get the money owed<br />
<br />
===Unsecured Credit Card===<br />
* A credit card where a security deposit is not required to open the credit account.<br />
<br />
===Credit Reports===<br />
*Credit reports contain information about where you work, live, and your bill paying habits. Credit reporting agencies Credit Reporting Agencies are companies that gather and sell information concerning your credit history to various businesses. This credit history is sold in the form of a credit report. The Fair Credit Reporting Act (FCRA), enforced by the Federal Trade Commission, is designed to promote accuracy and ensure the privacy of the information used in credit reports. Under this act, Credit Reporting Agencies must furnish correct and complete information to businesses to use in evaluating your applications for credit, insurance or a job.</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:Definitions&diff=2089Debt Relief:Definitions2004-11-18T01:25:00Z<p>MHartley: /* Bankruptcy */</p>
<hr />
<div>==Definitions and Common Terms==<br />
[[Debt Relief | Debt Relief Home Page]] | [[Debt Relief: Bankruptcy| Bankruptcy]]<br />
===Bankruptcy===<br />
*Bankruptcy is a court case. It is used when a person cannot pay his or her bills. It helps a person get a fresh financial start. All bankruptcy cases are handled in a federal court. When the debtor exceeds his or her ability to pay, the debtor may file a petition with the bankruptcy court for voluntary bankruptcy. It is wise to have an attorney help you decide whether bankruptcy is the best way for you to handle your situation. <br />
<br />
The two most common types of bankruptcy filed by individuals and businesses are: Chapter 7 bankruptcy and Chapter 13 bankruptcy.<br />
<br />
*'''Chapter 7 bankruptcy'''-involves the liquidation of all your assets that are not exempt from the bankruptcy settlement. <br />
*'''Chapter 13 bankruptcy'''-is a court-ordered and approved repayment plan to your creditors.<br />
<br />
===Beacon or Credit Score===<br />
* Points kept on file by credit reporting agencies that indicate how much debt a person has; higher scores are ideal. Low scores indicate an unfavorable credit history.<br />
<br />
===Debt===<br />
* Liability; money owed<br />
<br />
===Debt Consolidation===<br />
*The process of combining all debt into one sum and having only one payment. This may be helpful when there are multiple credit cards with high interest rates. In most cases payments are lowered and interest rates are reduced<br />
<br />
===Garnishee or Garnishment===<br />
*A creditor can legally take money from a debtor's paycheck.<br />
<br />
===Insolvent===<br />
* Unable to meet debts or discharge liabilities.<br />
<br />
===Liens===<br />
*The creditor can legally claim the property of the debtor by placing a lien on the property until the debt is paid.<br />
<br />
===Liquidation===<br />
* A debtor may be legally ordered to sell all assets in order to settle debts.<br />
<br />
===Secured Credit===<br />
* Where a deposit is made to the credit supplying company to cover any expenses or purchases made with the credit. Often times calling it a savings account for credit. A limit is then placed on the credit issued for the amount of the deposit paid.<br />
<br />
===Sue or suit===<br />
* The creditor can take legal action to get the money owed<br />
<br />
===Unsecured Credit Card===<br />
* A credit card where a security deposit is not required to open the credit account.</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:Managing_Your_Credit&diff=2106Debt Relief:Managing Your Credit2004-11-17T20:45:06Z<p>MHartley: </p>
<hr />
<div>[[Debt Relief | Debt Relief Home Page]]<br />
<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and 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 will be denied. The higher your credit score, the more likely you will receive approval. Every 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. <br />
<br />
# Apply for a secured card or deposit money in your checking account. <br />
# Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''. <br />
# 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. <br />
# 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. <br />
<br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#Unsecured Credit Card|unsecured credit]] cards on your own.</div>MHartleyhttps://litwiki.org/index.php?title=Debt_Relief:Managing_Your_Credit&diff=2076Debt Relief:Managing Your Credit2004-11-17T00:40:31Z<p>MHartley: </p>
<hr />
<div>[[Debt Relief | Debt Relief Home Page]]<br />
<br />
Specific criteria has to be met in order to obtain credit. Creditors solicit your credit history from credit reporting agencies such as Experian, Trans Union, and 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 a high risk and chances are your request will be denied. The higher your credit score, the more likely you will receive approval. Every 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. <br />
<br />
# Apply for a secured card or deposit money in your checking account. <br />
# Apply for a department store or gasoline credit card and build small balances, '''but pay them off in full each month'''. <br />
# 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. <br />
# 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. <br />
<br />
Over time, your credit score will improve, and you will qualify for [[Debt Relief:Definitions#Unsecured Credit Card|unsecured credit]] cards on your own.</div>MHartley