Small Business Debt in Missouri and Illinois: How Can Chapter 7 Bankruptcy Help?

Saturday, February 6th, 2010 at 3:38 am  
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If you are a small business owner needing to file Missouri or Illinois Chapter 7 bankruptcy, you may be wondering what happens to your business debt. In terms of Chapter 7 bankruptcy, debt is divided into two categories. Some debts are dischargeable, meaning they can be eliminated through Chapter 7 bankruptcy. Examples of dischargeable debt include personal loans, credit card debt, medical bills, leases and most income tax debts over three years old. A smaller list of debts, however, is non-dischargeable. That means that they cannot be completely eliminated through bankruptcy. Non-dischargeable debts include student loans, alimony, child support, income tax debts less than three years old and criminal fines.

So, where does small business debt fall? If you are filing Missouri or Illinois Chapter 7 bankruptcy to stop harassing creditor calls, get credit card debt help, or stop a wage garnishment, your debt must be primarily consumer debt. If you are, indeed eligible as a debtor, a chapter 7 bankruptcy will discharge your personal obligation to pay the small business debt. Now, does that mean that your debt has disappeared forever? Not necessarily. Creditors may still take action to collect the debt from your actual business if your business is structured a specific way. Filing a chapter 7, however, does protect your personal interest in the debt; and since most lenders require small business owners to make a personal guarantee on any loan, this could be a great move to get yourself out from under your crushing debt.

The best move would be to contact a St. Louis Missouri or Belleville Illinois bankruptcy attorney who is experienced in handling small business debt in a bankruptcy case. Normally I recommend finding the best attorney in your area but, if you are filing bankruptcy as a small business owner, finding the best attorney in your area is absolutely critical. You may even be able to keep your small business with a Chapter 13 bankruptcy.

The roots of the American economy all lie in small business. Following your dreams to open a small business is not always an easy process. But, luckily, there are Missouri and Illinois bankruptcy lawyers who can help you keep your dream alive while also helping you handle the debt you?ve incurred in the process. How do you know when you’ve found the best bankruptcy attorney in your area? Most attorneys offer a free consultation but the best attorneys will offer you free information before you even step foot in an office. Look for an attorney who offers you free articles, blogs, and even free publications to help you understand how bankruptcy can help you.

Missouri Bankruptcy attorney James Brown has been working to relieve the debt of hard-working American families for over 15 years. He has dedicated his career to educating consumers about options for debt relief and has released 5 publications, including, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.” You can request a free copy at http://www.castlelaw.net

Article Source: ArticleSpan

Debt Collector Harassment: Four Illegal and Bogus Collection Tactics You Should Know About

Wednesday, February 3rd, 2010 at 11:33 pm  
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Even though the Federal Trade Commission (FTC) received nearly 80,000 complaints last year concerning debt collectors and unfair practices, its largely believed that only a small percentage of debt collector violations are actually reported by consumers. And while most debt collectors stay well within the boundaries defined by the Federal Fair Debt Collection Practices Act (FDCPA), there are others who use illegal tactics including threats and intimidation to collect a debt. It’s of the utmost importance that consumers who may have fallen behind on their bills know that debt collector harassment can occur quite often. Furthermore, debt harassment can come in a variety of forms from intimidation to the use of obscene or profane languag, all of which is illegal.

It’s even more important to provide examples of some common bogus and illegal debt collection practices. Below are four illegal and bogus tactics that some debt collectors use:

"You’re Wages Will Be Garnished To Recover This Debt": Unless a debt collector has legal authority to do so, they can not threaten legal action; third party collection agencies have no legal authority. In addition, the only way your wages can be garnished by a creditor is if a creditor has a won a judgment against you.

"You Better Pay Up Today Because We Know Where You Live": It may be hard to believe but more than 300 FTC complaints last year were made by consumers citing threats of violence. Even implying physical harm to collect a debt is illegal.

Discussing Debts With Neighbors, Relatives and Employers: Debt collectors frequently call relatives and even employers to obtain information about debtors. Verifying addresses or even contact information keeps debt collectors safe in the realm of fair debt collection practices, however discussing the debt or even hinting they are calling about a debt is illegal.

"We Are Going To Issue a Warrant for Your Arrest If You Don’t Pay This Bill": Failure to satisfy a debt is a civil matter, not a criminal one. Any debt collector who states you will go to jail for not paying a bill is breaking the rules pursuant to The Fair Debt Collection Practice Act (FDCPA).

There are many more debt collector harassment techniques including the use of intimidation of which consumers should be aware. It’s important that consumers know their rights as described under The Fair Debt Collection Practice Act (FDCPA) and stop debt collectors, who engage in illegal debt collection practices, in their tracks.

About CreditLaw.com: CreditLaw.com helps consumers stop collection calls in states throughout the Northeast. Operated by the law firm of Kimmel and Silverman, PC, CreditLaw.com uses the Fair Debt Collection Practices Act to help families in financial difficulty end bill collector harassment.http://www.creditlaw.com

Article Source: ArticleSpan

How to overcome Debt?

Wednesday, February 3rd, 2010 at 12:39 pm  
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Overspending has lead to the most dreaded thing in anyone’s life i.e. Debt. Because of this people who are heavy on debts are not only worried but it is also creating havoc in their personal lives.

There is a feeling among the people that if they own a credit card they are some king or queen who owns everything and they will shop to their heart’s content. That is really true. When one owns a credit card, he can shop for how much ever he wants. Whenever you use your credit card make sure that you have the repayment option within your grasp. People must think once or twice before they spend money. Most of the people do not adhere to this in their life span. They end up paying a huge amount to the bank because they spend a lot. They won’t even think whether they will be able to pay it back or not. When they end up in inability to payback the bank, it leads to bankruptcy and this will lead to the economic crisis.

You will need to earn a lot of money to get rid of your debts. There are lots of ways you can make additional money. You need to have a lot of money for paying the debts. You need to earn a lot in addition to the money that you earn regularly. You should be really educated enough on finances to get debt free. Not only should you know your financial plans but also the concepts behind them. Only if you are aware of your plan, you can use it efficiently in future. Some other things that can be done for leading a debt free life are: try to pay the money that is under debt from time to time. Do not keep overloading it. Whenever you get some money in hand, try to pay your debts slowly. Get the help of others in your financial planning. Know your requirements and spend money accordingly. Do not spend more than your efficiency. Have a budget for your week and then spend according to that. You should primarily complete the payment of the debts which have a higher interest rate on them. You can even try getting money from other sources. You can go for a part-time or a spare time job to make additional money. Your debts would be closed sooner through this.

You can get good jobs on internet itself which could increase your income. And whatever it may be, being debt free is not something that you can achieve in a short span. You need to go a long run.

Debts Free Life provides debt settlement services by negotiating with creditors to reduce client’s debt from 40-60%. Please visit our website for more details http://www.debtsfreelife.com/

Article Source: ArticleSpan

Stop Collection Calls

Wednesday, October 28th, 2009 at 9:17 am  
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In the current down economy, many people are in debt, and searching for a way to stop collection calls that may be occurring on a daily basis. If this is happening to you, don’t feel like you are alone, and don’t buy into the guilt trip that many people put themselves through once they realize they are in over their heads with debt. That guilt trip is one of the many tactics that debt collectors will use against you, in the process of trying to squeeze every last dollar they can from you – if you let them.

If you are like countless other people, and you have credit card or other debts in collection, chances are that happened completely by accident, and not by any intention of your own. Many debt collectors like to make implications that consumers they are trying to collect from are somehow “dishonest”, and that they just borrowed unsecured debt with no intention of paying it back. You and I, and most everyday people, know the truth is very different.

Lost jobs, declining real estate values, rising costs of food and healthcare, are just a few of the reasons that so many people find themselves struggling to stay on top of their budgets. Most of the things I just mentioned are far out of any single individual’s power to control. But if you’ve ever had to deal with debt collector phone calls, you know that they love to try to use shame to push your buttons and wring some kind of payment from you, whether you are in a position to pay or not.

The fact is, between the two parties involved – you, the consumer struggling to make ends meet, and the debt collectors calling you each and every day – the ones likely more deserving of suspicion and shame are the debt collectors. They buy old debt that has been charged off (which means the original creditor has received at the very least a tax write-off for the lost revenue) and they buy it for pennies on the dollar. This gives them the legal right to “collect” on the debt. However, it does not give them the legal right to hassle and insult you. Those behaviors are strictly outlawed by the FDCPA, or Fair Debt Collections Practices Act.

The FDCPA is the federal law that protects consumers from abusive debt collectors; it is by knowing and using it effectively that you can stop collection calls. In it is a provision for how a debt collector can legally communicate with you regarding a debt. The bottom line is, if you request they cease and desist communication by phone, and conduct all communication in writing, the debt collectors must stop calling – and if they do not, you can actually sue them for financial damages.

The fact is, if you have a debt outstanding, you should make an effort to pay it back. However, not everybody is in a position to pay all their debts off at one time, or in some cases, at all, depending on their particular situation. If a debt does get charged off, that means the original creditor has essentially washed their hands of your debt. So, to be fair and honest, yes you still owe a debt – but all the rules change once that debt is charged off. Who, when, and how much you owe are all now a matter of perspective, in many ways, they are negotiable – literally and legally.

When it comes to debt collectors calling and constant harassing, the best thing you can do for yourself is to know your rights under the law, and choose to look at the situation very objectively as a business negotiation. Protect yourself, stop the calls, cut your losses, and move on. There’s plenty of time to improve your credit and financial situation, and life is too short to waste being made to feel guilty by abusive debt collector thugs.

Are you sick and tired of getting collection calls on a daily basis? Are you being harassed, pushed, or even threatened to make payments to debt collectors on old, charged off debts? The fact is, you do not have to put up with being fed guilt and fear, on top of experiencing the financial hardships that put you behind on your payments in the first place.

Debt collector thugs will try and question your integrity and decency, while threatening to take everything you have in an effort to influence you to pay the full balance on an old debt. You are protected by the FDCPA, and you have every right to negotiate lower payoff balances. Most likely, these debt collectors do not even have the legal right to take you to court, even though they often threaten to do so.


Stop Debt Collectors Legally

Wednesday, October 28th, 2009 at 4:33 am  
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Wondering if it is possible to stop debt collectors from calling? Are you tired of constant phone calls from debt collectors that are rude, obnoxious, insulting, and even threatening? Ever wondered who gave them the right to bug you constantly and try to pressure or scare you into making payments you can’t afford? Well, the fact is, NO ONE gave them the legal right to harass you, and you DON’T have to take it any more! You can stop debt collector phone calls, and prevent them from bugging you constantly at home and at work.

Debt collectors have to abide by legal guidelines when they collect debts. They cannot threaten to sue you, or to have you arrested, or make any other ridiculous threats. If they do, you can use that to beat them at their own game.

Debt collection agency abuse has been on the rise in the United States. Recently, the Attorney General of New York had one infamous debt collector prosecuted and locked up, and the whole story was featured on prime time news. Some of these guys actually threaten physical violence, or pretend to be police officers and federal agents! This is totally and completely illegal and if they try that on you, you can use it to your advantage.

Obviously, their only motivation is greed. Debt collection agencies buy charged off debts at pennies on the dollar. So, they could buy a $5,000 debt that you owe to a credit card company for say, $250 (just an example.) This means that if they successfully convince you to pay them the full amount owed (to the original creditor) they see a profit of $4750! (This illustration contains a big hint as to why and how you can settle your collection accounts for much less than what you actually owed.)

Debt collectors routinely sling insults at you, your work ethic, your integrity, and yet many of them are nothing more than greedy thugs that simply buy the “right” to try and collect a debt from you. But that right is extremely limited, and frankly, your rights as a consumer give you MUCH MORE POWER than they have!

The bottom line is, debt collector harassment is against the law, and you can effectively Stop Debt Collectors In Their Tracks, if you have the guidance and the right tools in place. Don’t put up with the abuse any longer. Give yourself the gift of peace of mind. How nice will it feel to no longer fear the sound of a ringing phone?

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