Debt consolidation - Can you be sued for debts

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Loans and Credit Problems
Most of us owe money to people or organisations most of the time: bills are a fact of life. But occasionally, we may find ourselves swamped by Debts, and can`t see a way of paying them all. But it`s never a good idea to ignore bills. Instead you need to get help to deal with them.

Most Loans that you have which aren`t on a Hire Purchase agreement and aren`t Secured on your home {eg, Mor... Read debt consolidation article



Debt Consolidation Information
It is no secret that more and more consumers today are carrying greater and greater levels of personal debt. With spending rising faster than income levels, it is easy to see how quickly this situation can get out of control, and that is where a solid debt consolidation program comes into play.

One of the most attractive things about debt consolidation programs is that they allow consum... Read debt consolidation article



Debt consolidation - Can you be sued for debts
It is possible for creditors and third-party collection agencies to use legal means as a way to collect debts. The likelihood of being sued or having your wages garnished depends largely on the creditor that is owed money. It has been my experience that certain creditors are more prone to legal action than others.

Traditionally, creditors seek legal action only if there is a considerable lack of contact with regard to the account or if they feel that a consumer could simply be trying to escape their financial obligations. If the debtor currently earns a respectable salary, owns a home that has a sizable amount of equity, or can most likely afford to repay your current debts without the use of credit counseling, debt settlement, or bankruptcy, then there is a possibility that a judgment may be filed against you if begin to miss your monthly payments.

Additionally, for legal action to proceed, third-party creditors and collection agencies must retain the services of an attorney that is LICENSED in the state in which you live.

Even if legal action is pursued, a wage garnishment can take a considerable amount of time and depends upon your current employment. Many states have laws that stop creditors from being able to use wage garnishment as a means to collect debts.

Further, it is illegal for Debt Collectors to do any of the following:

Suggest that failure to pay your debts could result in arrest, jailtime, or wage garnishment

Contact consumers at their place of employment if they know the consumers employers prohibited such calls

Talk with third parties, including family, neighbors, children, and employers, for purposes other than acquiring location information about consumers, without consumers consent

Engaged a person in telephone conversations, repeatedly or continuously, with the intent to annoy, abuse, or harass a the person

Threaten to take action with regard to filing a lawsuit when they do not intend to do so

Call consumers at times or places that they know or should have known were not appropriate

Fail to inform consumers of their legal right to dispute and obtain validation of their debts, and to obtain the name of the original creditor

Continue to try to collect debts after consumers have formally disputed them in writing, and before verifying the debts

Use obscene or profane language with the intent to offend

If you wish to stop creditor harassment, you must also send a Cease and Desist letter to stop the communication.

Make sure you send it via certified mail with a return receipt request.

Alan Barnes
IAPDA Certified Debt Arbitrator
President and CEO of Debt Regret
http://www.debtregret.com

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Debt

We all know about debt. If you don't have too much as an individual you can increase the quality of your life, but with more than you can handle it can make your life a nightmare.

There are two kinds of debt. Usually it is personal and used to buy a depreciating item such as a car or entertainment. Today a car has become a necessity, but it doesn't mean you have to buy a new one every 2 years or one that is beyond your means. It should be thought of as transportation.

The second kind of debt creates an asset that produces income that will more than pay off the debt. For a business this can be a truck, a new machine, even a new building for office or production. A person may borrow money to continue education so there can be career advancement. Money borrowed for production is very healthy.

A mortgage is a necessity and can be classified as creative debt. You have to live some place so you have a choice of rent or mortgage payments. Most everyone prefers the latter as it creates an asset as well as shelter.

Before taking on any type of debt it is wise to determine the risk. Debt creates risk. For personal noncreative debt you must consider your income that will allow repayment of the obligation especially if it is one that has no value to anyone else such as a vacation or flying lessons. Do not borrow money to go to the racetrack or gamble in the stock market. The first consideration when borrowing is what will happen if I can't make the payments? Will what I have purchased have any remaining value that can be sold to reduce the balance remaining?

If the balance cannot be repaid you want to do everything possible to avoid bankruptcy as that can haunt you for the rest of your life. Debt consolidation is sometimes a solution. For a business there is a preliminary bankruptcy that allows the court to appoint a special manager to watch over even run the business until it is back on its feet or declared defunct.

The world as we know it swims in a pool of debt. Business today could not survive without some form of borrowing nor could the consumer have all the conveniences that make living a pleasure - washing machines, TVs, air conditioning, garage door openers, can openers, computers just to mention a few most of which are obtained with the help of a credit card.

Keep in mind the 2 kinds of debt - the kind that creates an income producing asset and the kind that does not. You must decide how much of each you can afford.

There is nothing wrong with debt as long as it is used intelligently.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

al@mutualfundstrategy.com; 1-888-345-7870


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Debt consolidation - Can you be sued for debts
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