In previous articles we’ve talked about the statute of limitations on a debt. To review, the statute of limitations is the time period in which a debt collector can sue you to collect a debt. Oftentimes debt collectors will still try to collect a debt after the time period has run out. This is legal but can very misleading. Many debt collection agencies use the uncertainty about the statute of limitations to confuse people into making payments on a debt that is outside the time period. In effort to make communications between collection agencies and consumers more clear, several states require that debt collectors disclose the statute of limitations of a debt. A bill introduced to the Pennsylvania legislature looks to put the Commonwealth among those states increasing consumer protections from debt collection agencies. House Bill 1633 would require collectors to disclose the applicable statute of limitations on an account in initial communications. The bill…Read More
Nothing is more alarming than being served with a lawsuit. It can be embarrassing, frightening, upsetting, and can cause a lot of anxiety. Is your lawsuit based upon an unpaid debt? If so, take a deep breath and realize that you have options. First, do not ignore it as ignoring the complaint will lead to you automatically losing the case and the debt collector getting a judgment against you. If that happens, the debt collector can garnish your wages or seize your bank account. Now that you’ve decided not to ignore the complaint, what should you do? First, you need to determine by when you need to answer the complaint. Read the summons that is attached to the complaint and it will tell you how many days you have to respond. In West Virginia, you typically only have twenty days to answer following the day on which you are served, so do not delay. Next,…Read More
If you’ve found yourself in the stressful position of getting contacted by debt collection companies, take a look at these tips. They may help you minimize or eliminate the issue altogether. First, make sure that the debt collector is actually looking for you and not someone else. This may sound like a no brainer but it could save your some aggravation. The collector may be calling you to find out the location of another person or you may have the same name as the person they’re looking for. If it’s a case of mistaken identity or the wrong phone number, you should be able to stop the calls immediately. Second, if the debt collection agency is actually looking for you, don’t play ostrich and bury your head in the sand. You may lose certain rights just by doing nothing. For example, the Federal Fair Debt Collections and Practices Act (FDCPA) requires that a debt collection…Read More
Companies that claim to help ease the burden of your debt are so tempting! It seems like a great idea… and sometimes it is. But please be careful before you move forward with these companies! Unfortunately this industry is ripe with scammers… and even if the company is not scamming and is completely legitimate, is it right for you? We highly recommend that you get an opinion regarding your options from a consumer or bankruptcy attorney before you move forward with debt consolidation, debt management, or debt settlement. The answers you receive from an attorney may surprise you, and you will almost certainly have a better understanding of your options. Hint: Don’t Believe Everything You Read On The Internet! What’s the difference between debt consolidation, debt settlement, and debt management? Here’s a quick breakdown: Debt settlement companies offer to negotiate settlements of your debts for a fee. In other words, they offer to negotiate down…Read More
This is a common question that I often get from clients. You can only file a joint bankruptcy case with a spouse. However, just because you are married does not mean that you have to file a joint bankruptcy in West Virginia. There are plenty of times where it is better to only have one spouse file bankruptcy. When advising our clients in West Virginia area, there are some things we consider when deciding if you should file a joint case: 1) Is The Majority Of The Credit Card Debt Etc. In One Spouses Name? If so, this may be a reason to have just one spouse file bankruptcy. 2) Do You Have Any Joint Debts With Your Spouse? If they are debts that you intend to keep, like mortgages or car loans, than you may consider to a single bankruptcy. However, if the debts that you want to get rid of are joint, then…Read More
Nobody wants a debt collector call when they are at work. It’s stressful, embarrassing and could get get you in trouble at work. That’s exactly why collection companies call the workplace. Their job is to create enough aggravation and stress to make you pay them. Given the choice you probably would pay them but sometimes you don’t have a choice. You may simply not have the ability to pay. However, even if you owe someone money, there are rules that debt collection agencies must follow. So if you get a call at work, follow these steps: Step One: Ask the debt collector for their name, their companies name and the debt that they are trying to collect. Write this information down. Step Two: Tell the debt collector that you are not permitted to take calls at work. Step Three: Write down the date and that you spoke to the debt collector. Step Four: If that debt collector calls you…Read More
I meet with a lot of potential clients who have been told a myth or two about bankruptcy. I’m forever adding to the list of those myths in hopes that I can help educate consumers about their rights and all of the powerful tools available in bankruptcy. As a result of these myths, a lot of people who could use the help of a bankruptcy attorney don’t ever seek advice or they wait too long to find out their options. Some of these “scary” bankruptcy stories come from well meaning people in our lives. Often times a friend or family member or co-worker will tell you to avoid bankruptcy. These folks may have your best interests in mind but they are often misinformed. Other “scary” bankruptcy stories come from people who don’t have your best interests in mind. Often times, these people want to profit off of the fear that you have about bankruptcy. They will tell…Read More
Yes! Declaring Bankruptcy In WV Does Stop Wage Garnishments. West Virginia is like most states in that it allows for judgement creditors to garnish your wages in order have a debt repaid. In order for a creditor to garnish your wages, they first have to take you to court and get a judgement against you. A wage garnishment is a way for creditors to collect money by having it deducted from your salary or compensation. A bankruptcy filing can stop collection lawsuits and wage garnishments, even if the garnishment has already started. You could also potentially recover lost wages if you have already been subjected to wage garnishment. The primary purpose of the federal bankruptcy law is to give debtors a financial “fresh start” from their debts. This purpose is achieved by attaining a bankruptcy discharge. Most debts are discharged in a bankruptcy. When a debt is discharged under bankruptcy law, it means that you…Read More
The reality is that most people who have found themselves on the wrong end of a debt collector would love to be able to pay the debt. We’ve all run into financial difficulties but that doesn’t mean that you’re not entitled to some rights. Whether or not you owe the debt is irrelevant. In fact, according to the legislative history of the Federal Fair Debt Collections and Practices Act (Otherwise known as the FDCPA) the purpose of debt collection laws is to preserve the civil rights of consumers and to protect consumers from being terrorized and abused by unethical debt collectors. Debt collectors have legal and ethical means to collect a debt but some choose not to be ethical. When debt collectors act in a way that is abusive it can have devastating effects on a person and their family. In fact the FDCPA states that “Abusive debt collection practices contribute to the number of…Read More
I get this question a lot from my clients. Obviously, for most of us, our cars and trucks are our lifelines. Without them it would be difficult, if not impossible, to get to and from work, the grocery store, etc. This is especially true for those of us in the Martinsburg and Charles Town areas of West Virginia where public transportation options are limited and many people commute to other states for work. There is also a common misconception that the bankruptcy laws only allow a family to keep one car. Luckily that is a myth because otherwise it would make it very difficult for families to get a fresh start after bankruptcy. While every case is different, there are some general guidelines regarding vehicles that determine how a bankruptcy can affect the vehicles: First, if you have a loan that is secured by your vehicle, you must maintain the payments and insurance if you…Read More
