The debt collection industry in the United States is rife with unscrupulous, dishonest operators who use almost any means including lies, deception, and harassment to collect money from American consumers.

Although limits have been imposed on bill collectors by the Fair Debt Collection Practices Act (FDCPA), many operators still choose to use whatever means they feel are required to collect a debt.

They have no regard for the financial difficulties a person may be suffering. Most times their financial problems have been caused circumstances beyond their control such as a loss of a job, reduction in income, medical bills, death in the family, etc. There are some threats which are sometimes used by bill collectors. Some of the most egregious threats common to the industry include the following:

Telling the debtor that if they don’t pay the bill collector will sue them.

Such a threat is based on a false premise.  Bill collectors have no “legal standing to sue” any debtor for a past due debt.  Consequently, they can’t sue a debtor and their threat to do so is just a threat and nothing more.  Debtors should not be intimidated by such talk.

Telling the debtor that if they don’t pay they will be arrested.

Although such threats are illegal, some bill collectors still employ this technique.  The truth of the matter is that no person can be arrested for non-payment of any alleged debt.  Debt collection is a civil matter, not criminal.  The only court remedy for a creditor is to attempt to collect the debt in civil court.  Long gone are the days of “debtor prisons”.

Telling the debtor that if they don’t pay the bill collector will take their house.

In these recent times when many Americans are losing their home this threat to some may cause a great deal of fear and panic.  Neither the debt collector, nor the original creditor can take your home for non-payment unless the debt they are trying to collect is secured by your home.  Credit card debt is “unsecured debt” which means that regardless of what they say or what they do, bill collectors cannot take you home.

Telling the debtor that if they don’t pay the bill collector will garnish their wages.

Garnishment of wages is a remedy for collection of a judgment. Most states do not have pre-judgment garnishment.  To garnish wages the creditor must file a lawsuit, reduce it to judgment, and then proceed with garnishment proceedings.  This procedure for the creditor is difficult and time consuming.  Unless you have been sued, served with civil process, have gone to court, and a judgment has been rendered against you, you are not going to have your wages garnished.

For American consumers who are suffering from unmanageable credit card and other unsecured debt help is available.  You can get the best, most effective credit card debt settlement from a licensed attorney at law who is licensed to practice law in your state.  Associated Attorneys, LLC will direct you to a highly qualified, experienced attorney who will give you the debt help you need.

Sometimes American consumers who, usually through no fault of their own, are struggling with oppressive credit card and other debt look to filling Chapter 7 (Liquidation) or Chapter 11 (Re-organization) bankruptcy as a means to resolving their financial difficulties. Bankruptcy is not a panacea and its effectiveness varies from debtor to debtor.

It is usually the “solution” of last resort and becomes necessary because the debtor has not fully taken advantages of other less negative approaches such as consumer debt settlement or consumer debt help.

There are some common misconceptions about bankruptcy which should be noted.  They are:

1.  Everyone Will Know That I filed for Bankruptcy:  Bankruptcy is a court proceeding and all filings are public record.  However, most likely about the only one who knows of the filing are the affected creditors.  Most newspapers don’t even publish bankruptcy filings.

2.  Which Debts will be Wiped Out in Chapter 7 Bankruptcy?  Although most debts will be discharged there are some that can’t be wiped out.  These include child support, alimony, student loans, restitution for criminal activity, and some Federal tax obligations such as 941 with holding obligations.

3.  Will I Ever be Able to Get Credit Again?  Some potential creditors will consider a person who has been discharged in bankruptcy to be a better credit risk than they were before they the discharge.  They know that the person probably has more disposable income.  They also know that the person cannot file for Chapter 7 bankruptcy again for another 8 years.  While available for the discharged debtor, credit will be more costly.

4.  Prior to Filing for Bankruptcy can I Max My Credit Cards Out?  Most bankruptcy judges take a negative view of this practice.  Most view it as creditor fraud.

5.  Can I Pay Some Creditors Just Prior to Filing?  If some creditors are paid just prior to filing for bankruptcy with the aim of paying them so as not to have to include them in the bankruptcy filing the Judges usually consider this practice to be paying “preferred creditors”.  This practice is not allowed.  Sometimes the “preferred creditor” will have to pay all funds received from the debtor into the bankruptcy court.

6.  Can I Choose Which Creditors to Pay?  During the course of bankruptcy proceedings, judges will not allow payment to some creditors and not to others.  They do not let the debtor pick and chose which creditor to pay.  They consider this activity to be giving a “preference” to some creditors.  There is nothing, however, to preclude a discharged debtor from re-affirming and paying selected creditors after the bankruptcy is over.

7.  Will Filing for Bankruptcy Improve My Credit Rating?  Filing for bankruptcy has more of a negative impact on credit scores and credit ratings than any other financial activity.  Bankruptcy will remain an entry on a credit report for 10 years.  All other negative financial entries will remain for 7 years.

Prior to taking the drastic step of filing for bankruptcy the consumer should explore all other remedies.  Most likely the best and safest remedy for severe, oppressive debt is debt settlement.  When handled by an experienced practicing attorney at law, through debt settlement, a consumer can get debt relief without going through the harsh, difficult, and most negative procedure of all, i.e. bankruptcy.

Associated Attorneys, LLC can direct a financially distressed consumer to a qualified, skilled licensed attorney at law who will provide the most effective debt settlement available.

For information contact www.associatedattorneys.com or call toll free (866) 411-4693