Debt Settlement Laws & Learning Centre
Due to recent increases in debt levels and subsequent demands for professional debt relief services, debt settlement companies settled over $1 billion in debt and eliminated an estimated $600 million for consumers in 2009 alone. Debt settlement is an attractive alternative to bankruptcy for consumers facing $10,000 or more in unsecured debt. If you believe you qualify for debt settlement, make sure to be as informed as possible about federal and state debt settlement laws, as well as the wide array of legal options and alternatives to bankruptcy available to consumers with unsecured debt. Good decisions are the products of good information. Our debt settlement lawyers are dedicated to aiding your decision-making process by providing you current and reliable debt settlement information.
Below you will find articles about the most common debt settlement topics, as well as links to articles about federal and state debt settlement laws and amendments to these laws. The articles are solely for informational purposes. For detailed advice regarding your specific situation, contact our Consumer Law Offices to schedule an appointment with one of our debt settlement lawyers.
Debts Covered under Fair Debt Collection Practices Act
When you are seeking debt relief, you are encouraged to seek someone who has professional experience in debt problems and understands the Fair Debt Collection Practices Act. This act provides very specific protection to the consumer and a knowledgeable debt specialist can make sure that you receive that protection.
Uniform Debt-Management Services Act – Simplified
In 2005, The National Conference of Commissioners on Uniform State Laws adopted a new legislation for regulating how the law viewed certain matters involving debt management, debt pooling, debt adjusting, debt settlement, debt relief and much more. These different factors vary as far as how they are handled, however the legislation was passed in order to provide rules for governing consumer credit counseling services. This would also include debt settlement services as well.
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The New Bankruptcy Law – How Will It Affect Debt Settlement?
Effective Oct 17, 2005 new bankruptcy laws went into effect making it tougher to file bankruptcy, what it basically means is a lot of grief and problems for Americans already drowning in a sea of debt.
How will the new Bankruptcy Laws affect Debt settlement? Consumers wonder, how willing will creditors be to negotiate any kind of a deal to settle debt now? Are they still going to be accepting the lump sum offers that they were once willing to negotiate with their customers?
Of course they will, the credit card banks had millions of dollars at their disposal that they lobbied with to attempt to get the new law passed. Why not, it was going to benefit them. They felt that bankruptcy was an easy way out and it was being abused by the upper class to get out of paying back their debt. Even though research can prove this not to be the case and the facts speak for themselves. From 1995-2004, while bankruptcy cases doubled, credit card profits tripled. Credit card companies target individuals that they know cannot afford to repay the loans, thus adding to the bankruptcy figures. More than half of the bankruptcies filed are because of medical bills that have piled up due to lack of insurance or loss wages. The income range for people filing is somewhere around $25,000.00. This does not point to the upper class trying to take the easy way out of their debt. Divorced woman, Hispanic and African American couples have the highest percentages of bankruptcies filed a year.
In a nutshell, this new law will profit the credit card companies more than anyone else; it will be business as always for them. Collections will continue, people who cannot afford to pay will continue to try and juggle one bill to pay another; inevitably getting into more debt trying to get out of debt. Hard working honest people will continue to be hit the hardest by both the new bankruptcy law that at once gave them some relief when they had reached the end of their rope, and the credit card companies also. Credit Card companies will still try to bully and force people into paying up, sometimes in a very rude manner, but when all is said and done, they are still going to make a deal.
How a debt management program works
If rising debt is giving you sleepless nights then debt management could be a solution that you can consider. Debt management is a process in which usually a third party assists you in the repayment of your debt. Many companies that offer credit counseling also offer consolidate bills programs plans to help people with heavy debt, get their financial situation under control. The third party or the company also negotiates with your creditors and tries to get your interest rates reduced.
Positive and negative effects of consolidation on your credit report
It is very easy to acquire debt but it is equally difficult to pay it off. Debt consolidation is one debt solution that can help you get out of debt. How does debt consolidation affect your credit report, could be the next thing you would want to know. To answer this you must first know what debt consolidation aims at. The very purpose of debt consolidation is to combine all your multiple debt and get you out of debt as soon as possible. Ultimately, it tries to improve your credit and not harm it. However, the effects of debt consolidation could be both positive and negative.
How Flexible Is Chapter 7 Bankruptcy
Over 1.5 million people are expected to file bankruptcy in the United States this year. For those who don’t possess a valuable asset, such as a car or a home, or have a dependable income, and whose debts have become unmanageable, filing chapter 7 bankruptcy can provide relief. Chapter 7 bankruptcy is a form of bankruptcy in which your assets are liquidated and the proceeds are used to pay off your creditors. Like other forms of bankruptcy, chapter 7 bankruptcy is a court-supervised process in which an impartial trustee oversees every aspect of the proceedings.
Tags: Chapter 7 bankruptcy, Chapter 7 bankruptcy Law, Chapter 7 Bankruptcy Laws, Chapter 7 Law, Chapter 7 Laws, Filing Chapter 7 Bankruptcy, Personal Bankruptcy
Debt Settlement Consumer Protection Act
There have been many people that have applied for home loans and applied to agencies that claim to be able to get hem out of debt or help them to get a loan and they have been defrauded and led along a path that has put them in debt. Due to this constant action the courts have put into place an amended law called the Debt Settlement Consumer Protection Act.
Tags: debt settlement, Debt Settlement Acts, Debt Settlement Providers
A Review of Fair Debt Collections Law
The Fair Debt Collection Practices Act was added to the Consumer Protection Act in 1978. The statute was added to the Consumer Credit Protection Act in order to stop debt collectors from harassing consumers that they are attempting to collect money from. The act describes numerous acts that are illegal for debt collectors, as well as a list of requirements that they must follow. Consumers are given added protection under the Fair Debt Collections law as they are able to validate that the debt belongs to them, as well as dispute a debt that is charged to them.
Tags: Debt Collections Law, Fair Debt Collections Law
How New Laws Have Made Debt Settlement A Viable Option
In recent years, debt settlement has become more and more popular, and in some cases, the only viable option for consumers to get out of debt. This is in part due to the effect of the struggling economy on all Americans, but it can also be attributed to changes in U.S. bankruptcy law as well as state-specific changes to debt settlement law.
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