What Creditors and Bill Collectors do NOT Want me to Tell You

Ah, the age of communication. A respected colleague of mine posted a Reader's Digest article on their Facebook page. The link to the article : http://www.rd.com/slideshows/13-things-a-debt-collector-wont-tell-you/?v=print .

Fair enough reading; bullet points and all. However, this simply skims over the overall picture of how everyday Americans should arm themselves with knowledge concerning how to respond to a creditor and debt collector. Each state has different levels of protection for their citizens when it comes to debt collection; from both the creditor and their agents (read: bill collector).

The first seven years of my post-law school career were spent in a collection agency; overseeing bankruptcy, compliance, and all areas concerning the law/regulations affecting the job. The first thing a collector does not want you to know; THEY ARE NOT THE FINAL AUTHORITY. Many of the best bill collectors create the aura of their authority over the "account"/"obligation"/"debt" and how that specific matter will be collected from you. As an individual, on the other end of the phone, you need to keep in mind certain rights; 1) They can not threaten to sue me unless the creditor intends to 2) They can not say they are an attorney if they are not one 3) They can not threaten me with imprisonment 4) They can not threaten to do something the law does not allow. All of these facts, regardless of the tales being told to you, remain throughout.

The most important thing a person has to realize is that should they fall behind on an obligation (be it a credit card, personal loan, or the like), that obligation does not go away. Yes, there are statutes of limitations that govern the length in time a person can be sued, however, the fact of ignoring the bill you got behind on puts one in a precarious position. You go from being a "customer" to a "debtor". The person you owe the money to is the creditor at that point; and they would like to get paid. You can convey the reasons why the bill is behind, however, their interests and concern begin and end with how much you owe, how much can you pay, and when will that payment come.

This also holds true when the creditor turns over the efforts of getting paid to someone else, a "third party", often referred to as a debt collector. The state and federal government have established laws over how these individuals conduct their business. If you wish to learn them, please do look them up on the FTC website. The overall gist is spelled out in the link above.

This is where things get tricky. The creditor and collector's greatest weapon is the level of pressure they can exert to force someone to pay. That pressure would be called harassment by some, "collection efforts" by others. Daily calls in states where it is allowed, letters to the home, even some have resorted to knocking on the door in the past. What they rely on is the perceived thin skin of the "debtor" to not be able to deal with the volume of calls and letters.

Combine the perceived thin skin with the fear of the unknown as to what can happen next. When I oversaw a collection team; our greatest weapon we honed was the fear of the unknown and we being the only ones who can control the unknown consequences from happening. Think of it as a squeaky wheel getting the attention. We wanted our wheel to be the one controlling the entire ship. There are ways you can quiet the squeaky bill collector wheel; sending a cease and desist letter and making sure they have received it being one such method.

SO, what do you do? You arm yourself with information. Make sure the bill they are trying to collect from you is valid; and that means you recognize the creditor and agree to the amount owed. Ask for this information in writing. Make sure you are aware of the consequences you created by ignoring the bill to this point in time and then make yourself aware of further actions that the LAW allows the creditor to take.

What the credit card companies do not like to admit is they can not first hand take any effort to make you pay the bill once it falls behind. A credit card company can not repossess your car; who you owe the money to for that car can. The credit card company would have to go to court, obtain a judgement, and then be able to collect on that judgement before having a chance at your possessions. Obviously, someone in the unfortunate position of being behind on their bills should act sooner rather than later; do not allow the creditors to reach this point.

There has been a wealth of information provided by the government, debt settlement companies, and consumer advocates concerning the collection of past due bills and how Americans should deal with them. Unfortunately, if you do fall behind, you most likely will hear from who you owe; or the debt collector they hire to remind you (as often as possible) about that very bill.

What the creditors and bill collectors do NOT want me to tell you is to educate yourself. Educate yourself about how much you owe on their particular bill, and all others. Educate yourself on what your state allows a creditor to do once someone is behind and cannot pay the bill. Educate yourself about the option in speaking with an attorney. More and more people are turning to bankruptcy as a way to free them of the overall debt burden; not just the one bill that you keep receiving calls for this week.

The best defense is a good offense. This is true in sport and finances. Build your offense in knowing the laws and your financial picture. If you have ignored bills thinking they were going to just go away; build your offense in knowing everything about what you make in income, what you need to survive and care for loved ones, and what you owe to creditors. Make yourself aware. A person who is aware about their rights, about their financial picture, and about what can be done; this is the collector's worst "debtor".

Lastly, the one dirty secret that no creditor or collector will tell you; you control your own financial picture. You control your wallet, you control your obligations, you can control how creditors and collectors communicate with you. The trick is, especially if you have been ignoring those obligations, take. back. the. control.

And, if you feel these bills are overwhelming; reach out to an attorney. I unfortunately have seen where clients feel that if they "just took care of this one bill", everything else would be OK. If you face bill collectors, lawsuits being threatened, etc; reach out to an attorney in your state. We are here to help you take back control of your finances and get the fresh start in life you now feel can never come.

The RIGHT advice for YOU

Sometimes, it is not as simple as you see on television. A couple nights ago my wife and I were watching ABC News and they interviewed Suze Orman regarding the housing and mortgage crises. The gist of the report can be found here: http://abcnews.go.com/US/housing-figures-offer-hope/story?id=14575419

Now I can see some of the wisdom in the advice she gives. However, it is myopic at best to think this can truly be the best advice for those people that make up the entire audience. My appreciation of the news trying to cover this very difficult issue for a lot of Americans turned quickly to disappointment in realizing that it is those very Americans in distress who might rely on this advice alone.

In the years of my practice, there are some constants. One is that when facing economic strife; there usually are more than one area of distress. If the mortgage is not being paid, then the car may be overdue. If you can not pay either to put food on the table; then the credit cards and utility bill may be ignored. Simply telling people to "walk away" from their home should be the start of the advice or recommendation; sadly this news report makes it appear as if Suze Orman made it the final word.

This is the shame of it all. As an attorney, I have seen various creditors, not just the mortgage companies, become quite active in the courts to gain whatever monies they can from those who are behind in their bills. This economic turmoil has hit everyone; from your kitchen table to the boardroom table.

It is for that very reason my advice to anyone considering giving up their home immediately seek the advice of an attorney; particularly a bankruptcy one. The surrender of one's home can have lasting implications on their credit and future financial outlook. Also, one would need to consider any second or third mortgages against the home that they think is being given back to the first mortgage company. Lastly, the walking away from one's home does not address the credit car bill, the car loan that is behind, or any other issue that is there.

Simply put, any financial difficulty that you are going through needs sincere, attentive, and dedicated advice so you can be best educated in what steps to take. This can only be obtained by a consultation with an attorney; giving them the particulars of your individual situation and allowing that attorney to give you individual advice.

If you take anything from reading this post, please do not only rely on the advice from the news. While it may sound like good advice, it may not be the right advice for you.

The Current State of Bankruptcy

Please click on this link: http://www.financiallit.org/PDF/2010_Demographics_Report.pdf

This report is eye-opening. It is from a national foundation that assists individuals facing financial difficulty; including on the verge of filing bankruptcy.

When I was in my younger career, bankruptcy was almost viewed as a "dirty word"; almost like those who file walk around with a Scarlet "B" tattooed on their chest.

What this report shows, and if anyone is paying attention to our economic climate can tell, is that the continued recession has reached into more homes at an alarming rate.

What has previously been viewed as making enough to be bankruptcy proof is not the case in 2011. Job reduction, income reduction, cost inflation; all of these factors have contributed to the strife facing an ever-increasing amount of Americans.

If you are an everyday American reading this and going through financial difficulty; I hope this shows you that there is no shame in reaching out for help. Many of your neighbors and people you would not believe are doing so. If you are a fellow attorney; this should certainly be an eye opener to just how much our services are needed today more than ever.

'via Blog this'

9/11 Always remember; never forget.

Ten years. Think about that a moment and then repeat; ten. years. That is how long it has been since the most horrific sight in my generation's lifetime unfolded on national television. I am sure we can recall where we were and what we were doing at the exact moment we first saw an airplane fly through the World Trade Center (link here: http://www.911memorial.org/ ) . What we felt when we learned the Pentagon (link here: http://pentagonmemorial.org/ )was also attacked. What we felt after learning of the heroism of Flight 93 (link here : http://www.honorflight93.org/ ).

I have provided links to all three memorials. I invite you to take a look through the very informative websites that each organization has created. Like me, I think you will easily be taken back to that very day when no matter our age; we lost the innocence of ignorance to the horror of terrorism on your land.

There will be ample opportunity to relive and educate our younger generation about exactly what transpired and how it has affected our nation then, now, and in the future. As for me, I distinctly remember being on the floor of a collection agency I was an attorney for the morning of 9/11/2001. This collection agency was located in New Jersey; not too far from Manhattan. Personally, my father had not been buried for more than three months after a year long battle. I was a month ahead of meeting my future wife. She herself has told me that she was with her father in a municipal court at the Jersey Shore. Both of us shared the same response in our first dates together; shock, sadness for the lives senselessly lost, and hopefulness that retribution would be swift.

When word spread through our office of what was transpiring, the phones immediately went silent. The staff that was on for the day huddled around the big screen television in our break room. I think we were still for hours until many of us realized it might be difficult to travel home.

For those of us who are blessed to not have lost a loved one in this tragedy; our stories might be quite similar. We called who we loved, we rushed home to make sure everyone was ok, we watched everything unfold.

For those of us whose lives were never the same because we personally were hurt in these attacks, we lost a loved one due to these attacks, or we were heroic to run and assist the victims on site; you each have my deepest sympathy and prayer for your continued healing. As I just crossed ten years from losing my father; it never fully heals. It remains.

What remains is what I think we all are responsible for. My daughter will be three this year and when the time is right; my wife and I will tell her about that sad day. Hopefully when the memorials are fully constructed; we all have a place to relive, learn more, and remember when our country was viciously attacked and our fellow citizens lost their lives.

I remember talking to my mother about what we were doing that day. I commented that we are still at war; but not like World War I or II. There is no bright, distinct "front line" you can look to a map and point. The front line is more a map of pinpoints; many in our proverbial back yard. There are American, and foreign, men and women risking their lives on this 21st Century front line to defend and protect you and I.

In closing, I welcome any and all stories, responses, remembrances, thoughts and comments you may have. Please leave them here on my blog, through my facebook, or email me. My wife and I have promised ourselves that we will see each of the memorials when they are ready. We surely will be watching the services on the television and listening to the stories that, just now after ten years, are first being told. What do you plan to do in remembering 9/11?