Debt Law

A:

A debt collector can call a person at work unless they have been told verbally or in writing that the debtor cannot take calls at work. However, the Federal Trade Commission protects consumers against bullying or calling at inappropriate times by bill collectors.

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  • What happens during bankruptcy?

    Q: What happens during bankruptcy?

    A: Although an individual can file for a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, both types involve the same four steps, according to Money Crashers. These steps include providing a financial inventory, receiving credit counseling, attending a creditors' meeting and completing post-bankruptcy credit counseling. Most bankruptcy cases are handled through paperwork rather than court attendance.
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  • What happens to debt when a person moves out of the country?

    Q: What happens to debt when a person moves out of the country?

    A: The results of moving out of the United States and leaving debt behind vary from lawsuits filed on behalf of the debt holder to poor credit for the debtor. Depending on the length of time out of the country, there may be no result.
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  • What is life like after bankruptcy?

    Q: What is life like after bankruptcy?

    A: Life after bankruptcy includes a new financial beginning and some challenges. Bankruptcy stays on a credit report for 10 years, which limits credit options, according to Bankrate. Lenders sometimes view individuals who filed bankruptcy as too risky because some past debts were written off. As a result, individuals who filed bankruptcy may not be issued a credit card for some time.
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  • What is a good bankruptcy score?

    Q: What is a good bankruptcy score?

    A: The lower a bankruptcy risk score, the better. According to Bankrate, bankruptcy risk scores range from negative numbers to 2,000. While these scores are hidden from consumers, businesses use them to decide whether to extend credit to a customer.
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  • Q: What are the repossession laws in Pennsylvania?

    A: Pennsylvania law allows lenders to repossess property in which they have a security interest if the debtor falls behind in payments, according to the Pennsylvania Legal Aid Network. For lenders to take this action, there must be a written security agreement and it must be possible to peacefully repossess the property.
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  • Q: What is a certificate of municipal lien?

    A: A certificate of municipal lien is a document that lists all of the money charged to a particular property. This includes any back taxes, water charges and other assessments a municipality may place on a specific property.
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  • Q: Where can you find forms for handling your own foreclosure?

    A: State court websites, such as those of the State of Connecticut Judicial Branch and the New York State Unified Court System, typically provide downloadable documents to help people handle their own foreclosures. Each state requires different documents, as the state court websites make clear.
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  • Q: Where can you find examples of debt settlement letters?

    A: Several websites, including those for LeaveDebtBehind, CuraDebt and SJ Packman & Associates, offer sample debt settlement letters for customers. All these sites protect the identity of the debtor for privacy reasons.
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  • Q: How do you report a cancellation of debt to the IRS?

    A: Cancellation of debt is reported to the IRS on Form 1099-C, according to Connie Prater and Fred Williams for CreditCards.com. The IRS considers a cancelled debt as income, and a 1099-C is provided to the debtor and the IRS. The amount is reported on the Other Income line of the form, notes TurboTax.
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  • Q: What are the differences between Chapter 13 and Chapter 7 bankruptcy?

    A: Differences between Chapter 13 and Chapter 7 bankruptcy include the income level of people eligible for each type of bankruptcy and the amount of time it takes to file for each, according to FindLaw. Only people whose income does not exceed a certain level can file for Chapter 7 bankruptcy.
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  • Q: What is the process of being sued for a debt?

    A: The process of a being sued for a debt begins when a creditor files a complaint with the court outlining the reason for the lawsuit and providing the information needed for the defendant to file a response, Nolo explains. The complaint includes the amount the creditor requests in the judgment, including any interest, attorneys fees and court costs. The creditor then serves the defendant with a copy of the complaint and a summons to appear in court.
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  • Q: Where can you find answers to common questions about bankruptcy?

    A: As of June 2015, answers to common questions about bankruptcy are the website of the U.S. Bankruptcy Court Southern District of New York. The site's Filing Without an Attorney page has a link to a PDF from the New York City Bankruptcy Assistance Project.
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  • Q: What is a letter of demand?

    A: A demand letter is a letter that states a legal claim making a demand for restitution or performance of an obligation owed to recipients for a breach of contract or legal wrong. These are also often referred to as a LOD, and they are typically drafted by lawyers.
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  • Q: What services does Second Bankruptcy Course offer?

    A: The Second Bankruptcy Course provides financial education and debt management instruction to individuals who file bankruptcy. The United States Justice Department approved the service as an official bankruptcy course in all states but Alabama and North Carolina, as the company claims.
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  • Q: What should you include in a debt collection letter?

    A: A debt collection letter should include the amount of the debt, the debtor, how the individual can dispute the debt and how he can verify the debt, according to the Consumer Financial Protection Bureau. All of the information has to be received within five days of initial contact.
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  • Q: Can the American Debt Foundation get consumers out of debt?

    A: The American Debt Foundation cannot get consumers out of debt because the company is already out of business as of 2015, according to the Better Business Bureau. The company was not BBB accredited, and it received a BBB rating of F, which is the lowest rating on the scale.
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  • Q: What legal points need to be included in a debt collection letter?

    A: Legal points to include in a debt collection letter include the facts regarding the debt and a request for the recipient to respond in a timely manner, the Houston Chronicle reports. The letter should be written in a strong but not harsh tone.
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  • Q: How does AllianceOne collect debts?

    A: AllianceOne collects debts through phone contact with the debtor. Once the contact is confirmed, an AllianceOne representative questions the reason for the unpaid debt and creates a payment plan to pay off the debt.
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  • Q: What are the FHA loan rules for buying a house after bankruptcy?

    A: FHA rules stipulate that a borrower must wait two years after a Chapter 7 bankruptcy before getting another home loan, but the FHA Back to Work – Extenuating Circumstances Program allows some borrowers to receive loans one year after bankruptcy, reports Nolo. To qualify, borrowers must prove financial stability.
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  • Q: How long does a Chapter 7 bankruptcy take to discharge?

    A: The court usually grants a discharge in a Chapter 7 bankruptcy four to six months after the petitioner first files the case with the clerk, states Nolo. The time varies according to individual case circumstances and by local jurisdiction processing times.
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  • Q: What are some debt collection laws in Florida?

    A: The Fair Debt Collection Practices Act and Florida Consumer Collection Practices Act prevent creditors from being able to collect debt through abuse, harassment, misleading or deceptive methods, according to Nolo. They are not allowed to pretend to be a government employee, contact third parties or file a lawsuit in the wrong venue just to collect a debt.
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