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Advice on options if you cannot afford to file bankruptcy - The Bills.com Blog
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Advice on options if you cannot afford to file bankruptcy
Monday, Dec 31, 2007
Question: Need advice. I am unable to afford to file for Bankruptcy. Hope to do in the near future. In the mean time, how do i handle all the creditors calling and the letters? Do I answer them?
Answer: I am sorry to hear about your situation. About 1.5 million American households file for bankruptcy every year. Sadly, filing for bankruptcy can also be a proposition that you just cannot afford, given your present financial condition. You are filing for bankruptcy because you have no money, but you need money to file for bankruptcy!For more information on bankruptcy, please visit the Federal Trade Commission's facts page available at www.ftc.gov . For self-help tips, please visit the BCS Alliance website at www.bcsalliance.com . I also encourage you to visit the bankruptcy page on Bills.com available at http://www.bills.com/bankruptcy/.
Now, about the creditor calls. Please remember that not answering the calls will in no way stop them. You will have to inform the creditor calling you about your present situation and make it clear to them that you are in no position to make payments on your debt at this time and that you are in the process of filing for bankruptcy. I also know that the collectors can be unrelenting; you have to make it clear to them that you are aware of your rights or they will continue to harass you.
Congress enacted a federal legislation that regulates debt collectors and collection attorneys and protects the rights of debtors. This law, The Fair
Debt Collection Practices Act, requires that debt collectors and attorneys stop calling you at home and at work once you ask them to stop. The law specifies that your request must be in writing, therefore, you should tell them to stop calling you at home and at work the next time they call, but then follow it up with a certified letter, return receipt requested. Shown below is a sample letter template.
Your Name
Your Address
Date
Collection Agency's Name
Collection Agency's Address
Subject: Debt Collection Against [Your Name] Creditor Name: [Creditor] Account No. [Number]
Dear Account Representative,
I am writing pursuant to the Fair Debt Collection Practices Act, 15 USC 1692c(c), to request to request that you cease all communication to me about my account [number ________] with [creditor].
[If you wish, explain your circumstances. For example, "I was recently laid off from my job, and I do not presently have any resources with which to pay off this debt. Once I have again secured employment, I intend to resume payment on the debt."]
[If
Your Name
Your Address
Date
Collection Agency's Name
Collection Agency's Address
Subject: Debt Collection Against [Your Name] Creditor Name: [Creditor] Account No. [Number]
Dear Account Representative,
I am writing pursuant to the Fair Debt Collection Practices Act, 15 USC 1692c(c), to request to request that you cease all communication to me about my account [number ________] with [creditor].
[If you wish, explain your circumstances. For example, "I was recently laid off from my job, and I do not presently have any resources with which to pay off this debt. Once I have again secured employment, I intend to resume payment on the debt."]
[If
there have been any violations of the FDCPA, you may wish to describe them. For example, "Please note that in violation of the Fair Debt Collection Practices Act, one of your agents contacted me last night at 9:30 PM. Should your agency contact me at any time in the future, please be sure that your contact is made in full compliance with the FDCPA."]
Sincerely,
[Your Name]
Sending this type of notice does not resolve the debt. For example, the creditor may file a lawsuit against you in order to collect the debt, even if you prohibit further contact by the collection agency. The Fair Debt Collection Practices Act does not apply to original creditors, like a credit card company; it only applies to debt collection agencies and attorneys collecting debt. Therefore, do not quote the FDCPA to get original creditors to stop calling. Instead, quote state law that governs original creditors but usually has similar provisions to the federal legislation.
I hope the information provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Sincerely,
[Your Name]
Sending this type of notice does not resolve the debt. For example, the creditor may file a lawsuit against you in order to collect the debt, even if you prohibit further contact by the collection agency. The Fair Debt Collection Practices Act does not apply to original creditors, like a credit card company; it only applies to debt collection agencies and attorneys collecting debt. Therefore, do not quote the FDCPA to get original creditors to stop calling. Instead, quote state law that governs original creditors but usually has similar provisions to the federal legislation.
I hope the information provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by Bee on Friday 30th January 2009 13:31
But I notice one thing, though: YOU DID NOT ANSWER THE QUESTION - YOUR OWN QUESTION. QUESTION IS: What is my option, what avenues do I have to file for bankruptcy, if I CANNOT AFFORD to file bankruptcy? If I cannot afford the $2-3000 for the lawyers' fee? Please, I need a direct answer to this.
2. Posted by Kwanman on Friday 30th January 2009 13:52
Check this link: http://www.bankrate.com/brm/news/debt/20040928b1.asp
3. Posted by angela casey on Wednesday 3rd June 2009 21:14
my son has to file for bankrupcy.He had a credit card for $8.000 that he also added my name to use it.He took my name off few days ago.If he files for bankurupcy,Will that effect my credit? thank you.
4. Posted by Bill on Thursday 4th June 2009 15:08
I would be careful. Usually if an account was opened jointly (meaning, if both your credit was involved in issuing the credit card, then it is unlikely that the credit card will simply remove you from the joint responsibility. On the other hand, if you were only an authorized user, then you can easily be removed from the account and his bankruptcy filing will not affect yo. In any case, I would strongly suggest that you consult with the bankruptcy attorney about the same.