A Collections Agency Sued Me and Won. What Collection Measures Can It Now Take Against Me?
Before debt collectors get a legally-enforceable judgment against you, a collections agency generally has only one way of getting paid: by asking. In Colorado, this is often done by telephone call or letter. However, once the debt collector sues you and wins, the law allows the collections agency to take further steps to collect your unpaid debt(s). For example, the debt collector can: – Garnish up to 25% of your net wages; – Seize your bank accounts; or – Record a lien against real property (to be paid off when...
read moreCan Collection Agencies Add Interest to My Debt?
Yes. Under the federal and Colorado state Fair Debt Collection Practices Act (or “FDCPA”), collection agencies may add interest to your debt so long as your original financing agreement allows them to do so. Every state authorizes the addition of interest, although the maximum amount each state allows often varies.
read moreHow Can I Stop the Collections Department of a Local Merchant from Harassing Me?
Unfortunately, the federal Fair Debt Collection Practices Act (or “FDCPA”) does not apply to your creditors’ in-house collections department. It only applies to collection agencies that are hired by your lenders to collect your debts. However, some states have fair debt collection laws that do cover creditors’ collection departments. In Colorado, for example, the Colorado state Fair Debt Collection Practices Act (or “CFDCPA”) protects consumers from unfair and abusive debt collection practices. It...
read moreHow Can I Get Collections Agencies to STOP Calling Me?
Under the federal Fair Debt Collection Practices Act (or “FDCPA”), it’s against the law for a bill collector from a collections agency to call you at an “unreasonable” time. Unreasonable, in this case, means before 8:00 AM or after 9:00 PM, but other times may be unreasonable like daytime hours for a person who works the night shift. The Fair Debt Collection Practices Act prohibits debt collectors from: – Harassing you; – Using abusive language; – Using false or misleading statements; ...
read moreShould I Try to Avoid Debt Collectors?
Unless you’re “judgment proof” or planning to file bankruptcy, most credit counselors feel you shouldn’t ignore your debt(s) or try to hide from debt collectors. Generally, the longer you put off resolving the issue, the worse the situation and consequences will become. Whether you negotiate directly with the collector or obtain a our firm’s assistance, most counselors feel it is almost always best to talk with the collector and try to work out a mutually satisfactory arrangement.
read moreDo I Have to Reaffirm Credit Cards and Department Store Cards When Filing Bankruptcy?
It’s almost never a good idea to reaffirm a credit card. Reaffirming means you will pay bills that your bankruptcy would normally wipe out. That can be a very high price to pay for the convenience of a credit card. Try paying with cash for awhile after your bankruptcy case is over. Then, in a year or two, you’ll probably be able to get a new credit card that won’t come with a large unpaid balance! If you do reaffirm a credit card or department store card, try to get something in return like a balance reduction or lower...
read moreDo I Have to Reaffirm Car Loans or Mortgages By Filing Bankruptcy?
In Colorado, if you’re behind on your car loan or home mortgage payments but you can actually afford to catch up with your payments, you may be eligible to reaffirm your debts with your lender. If your lender agrees to give you the time you need to catch up on a default, you can sign a “reaffirmation agreement” with your lender, which will allow you to keep your car or home. If you were having trouble staying current with your payments before bankruptcy and your situation has not improved, reaffirming debt can be a big...
read moreBesides Reaffirmation, Do I Have Other Options for Secured Debts?
You may be able to keep the collateral you originally pledged to your lender by repaying your lender in a lump sum that amount the item is worth, rather than what you actually owe on the loan. This is your right under bankruptcy law, and it’s called “redeeming” collateral. Redeeming collateral can save you hundreds of dollars. Because furniture, appliances, and other household goods decrease in value over time, you may redeem them for less than their original cost or what you actually owe on the account. You may also have...
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