If you have a judgment that has been entered against you, then you may be feeling terrified about the next steps that a creditor may take to collect their judgment. Many questions may race through your mind as to what will happen next. This blog will explore post-judgment collection techniques used by creditors.
It is crucial to fully understand how long a creditor has to collect on a debt. There are a series of laws in place that govern debt collection procedures including for example: the timeframes for collecting a debt, the practices and procedures for collecting a debt, and the penalties for violating these procedures. This series of laws is called the Fair Debt Collection Practices Act (“FDCPA”).
The New Jersey Fair Debt Collection Practices Act (“NJFDCPA”) fortifies the federal FDCPA and bans debt collectors from using unfair and dishonest practices. As with the federal law, the NJFDCPA guidelines apply only to debt collectors and does not apply to original lenders. The FDCPA defines a debt as any obligation of a consumer to pay money arising out of a transaction primarily for personal, family or household purposes, including money owed on a personal credit card account, an auto loan, a medical bill or mortgage. The FDCPA prohibits debt collectors from using abusive, unfair or deceptive practices when attempting to collect a debt.
There is a huge stigma that goes along with filing for bankruptcy. The word bankruptcy invokes a feeling of failure and immorality. People dread the thought that bankruptcy may be in their future. But debt consolidation, debt resolution, credit management, debt relief, etc.; these terms invoke a completely different emotional response. These concepts are marketed as an alternative to bankruptcy: a way out of financial hardship, but not shirking one’s responsibilities.
Don’t be The Next Victim
Debt relief agencies are great at marketing, but are a poor choice in most circumstances. Debt relief agencies promote that their services are an alternative to bankruptcy, but in truth they are praying on people’s emotions, spouting a false narrative, and creating false expectations.
Most individuals who find themselves in financial difficulty feel that bankruptcy is their last option. Unfortunately, this misconception often leads individuals to be preyed upon by the pseudo-legal debt settlement industry believing it to be an “alternative to bankruptcy”. These services, which may seem like the better choice, in truth, leave individuals believing that the creditors are stopped from collecting and that they are on the path to recovery. Nothing is further from the truth. The reality is this: in comparison to most debt settlement services, bankruptcy is almost always the best long-term option.
When residents in New Jersey decide to start a business, it is very common that they will seek a small business loan. While it is obvious that at the start of the small business the owner will deal with a certain amount of debt, if the business fails to accumulate revenue and assets, they might have to consider debt relief options, filing for Chapter 11 bankruptcy or even ending the business. This is why it is important to understand how to address business debt, especially when they are dealing with their own debt collection issues from their customers or clients.
Is your debt piling up and becoming overwhelming? Many Americans will unfortunately find themselves in such a situation due to loss of a job, medical bills, credit card debt or other financial difficulties. In New Jersey and across the country, people are often struggling to get a firm footing again.
If you are beginning to feel overwhelmed, there are several things to keep in mind:
No one likes being pestered by debt collectors calling at all hours of the day, making empty threats and using language that makes one blush. Fortunately, a federal law known as the Fair Debt Collection Practices Act protects individuals from debt collector and creditor harassment. It also makes it illegal for debt collectors to use unfair, deceptive or abusive tactics to provoke people to pay up.
There are many reasons people find themselves in financial binds. Often, it is not their fault. A job loss, death in the family, major illness or injury or divorce can put a family behind on monthly payments and some are unable to return to solid financial footing after a life-changing event. Too frequently, individuals fail to recognize they are in financial trouble and delay seeking remedies until it is too late.
If circumstances have put you behind the 8-ball, it is best to know your options and to take steps to keep from falling further behind.
Can You Discharge Debt Through Bankruptcy?
Is bankruptcy the answer to your financial troubles? It depends on many factors, including the amount you owe, the nature of your debt and which chapter your bankruptcy is filed under. Some debts are eliminated completely, while other debts cannot be reduced at all through bankruptcy.
When individuals and families in New Jersey are going through tough financial times, it is not rare for them to consider different ways to address their financial challenges. Whether it is due to credit card debt, unemployment or other money problems, our law firm understands that considering one's debt relief options is not only stressful but can be confusing as well. While filing for bankruptcy could be the best option to get a fresh financial start, it is important that individuals understand the process and know what to expect.