A Troubling New Tactic by Debt Collectors

Posted on November 16, 2018. Filed under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Consumer Alerts, Consumer Bankruptcy Attorney, Debt Collectors | Tags: , |


Click on the paragraph excerpt below to read about CBS News report on a troubling new tactic being used by debt collectors.  If you are suffering from debt collectors contacting you,  Bankruptcy can help. Give us a call today to schedule a free, no obligation  appointment to review your options.

“Overstating a debtor’s balance — also called “overbiffing” — is the latest outrage in unfair debt collection.

In a recent case, regulators allege a New York debt collector may have tricked thousands of consumers into paying far more than they actually owed by fraudulently inflating consumer balances and using profane, abusive and illegal tactics to collect the fabricated bills. The term is called “overbiffing” because the scammers overstate a person’s “balance in full,” which is sometimes shortened to BIF.”

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What do Easter and Bankruptcy have in common ?

Posted on April 18, 2014. Filed under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Consumer Alerts | Tags: , , , , |

flowers spring

Easter is about redemption, forgiveness and a fresh start with a new life.

Guess what ? … bankruptcy is about the very same thing.

As you enjoy this Easter holiday weekend with family and friends, focus on those relationships and think about changing your life and removing the burden of debt so you can more richly enjoy those relationships without the constant worry of debt and debt collectors.

You don’t have to live like this … and we can help. Call today 1-888-651-9353

photo credit: Bert Kaufmann via photopin cc

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Can you go to jail for not paying your debts ?

Posted on January 29, 2014. Filed under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Consumer Alerts, Consumer Bankruptcy Attorney | Tags: , |


In other words, can debt collectors use the courts to hold debtors in contempt with jail time ?

This technique has been used to success by a collection attorney here in South Central Kentucky. It is occurring in other states as well. I haven’t seen it lately, but have within the last two years or so.

It is basically an end run around the old maxim that you can not be put in jail for owing debt, other than child support and, sometimes, taxes. Here’s how it goes: the debt collector’s attorney obtains a judgment against the debtor, then schedules a deposition on the judgment for asset discovery purposes. Then, when the debtor does not show for the deposition, the debtor’s attorney asks the state court judge to have the debtor held in contempt of court for not appearing and be required to post a cash bond equal to the amount of the debt in order to not be incarcerated.

Any debtor that faces this situation should immediately seek the advice of an attorney skilled in representing folks who owe and have been sued. Unfortunately, the debtor often does not even know that the deposition has been scheduled.

I am hopeful that most state court judges would see this for what it is, and not incarcerate individuals for this type of contempt.

photo credit: Thomas Hawk via photopin cc

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I thought creditors would stop contacting me when I file Chapter 13 ? What do I do if they don’t ?

Posted on July 31, 2013. Filed under: Chapter 13 Bankruptcy, Debt Collectors | Tags: , , |

petition 4

The filing of your bankruptcy papers operate to automatically stop any collection efforts once the creditor is notified. Most legitimate creditors know about this and will respect that legal
requirement. It usually takes about 30 days for a creditor to get officially notified. Occasionally, however, some creditors may not get the word or may just try to muscle their way in for more money than they are allowed to receive. If you are contacted, first check to be sure that creditor has been listed on your bankruptcy papers. If they weren’t listed, see your attorney about adding them to your bankruptcy. If they were listed, still contact your attorney.

REMEMBER: You do not have to discuss the matter with a creditor who might contact you even after they were listed. Maybe they just don’t know about it yet. It is best to simply tell them you are in Chapter 13, give them your case number and attorney’s name. Then politely tell them not to call you again. If they persist, tell them they are in violation of a court order and you want them to stop. Be sure to keep a record and forward it to your attorney.

John Rogers, Kentucky Bankruptcy Attorney

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