Bankruptcy, The Fair Collection Act, and Co-Signing

July 19, 2010 - PRLog -- At anytime when you owe money and become a debtor. By falling behind in the repayment system, or if information is entered incorrectly you mey be contacted by debt collectors. In these situations, the Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibit certain methods of debt collection.

The big question is…”How may a debt collector contact me?” The answer is simple. They may contact you in person, by telephone, mail, telegram, or fax. However the collector may never contact you in any inconvenient times or places, like before 8 am, after 9 pm (unless otherwise agreed). Collectors may not contact you at work especially if known that the employer disapproves of these such actions.

To stop a collector from contacting you, you may write a letter to the collector telling them to stop, and once received may not contact you except for the occassional letter stating that they will no longer be contacting you per your request. Nnote that sending such a letter does not make the debt go away if you actually owe it, and the debt collector and/or original creditor may still file a suit against you.

With all the people I have talked to over the years the thing that come out to bite people the most is co-signing. Whether for your child to buy their first car or even an older child that has gone through job changes or divorce can not buy a car without a co-signer. Thinking its my child I need to do this to help them and their credit. True they might be your child but no you don’t have to do this. False this is going to help their credit. True it is going to hurt your credit. Car sale’s men all say well they can refinance the car in a year or so, False the car has deprecated during the first year unless your child has several several thousand dollars to towards the refinance It is not going to happen. But every time they are late it goes on your credit if the car is reposed the creditor will come after you first because you have more to lose.
The same goes for an apartment, if you really have to do it make sure it is only a six month lease so after that they can get their own. That way it might only be 3500 or so if they move out after the first month.
So kids, grandkids, brothers, sisters, friends or anyone else that can make you feel guilty about their needs. Don’t listen , but if you do their are pages and pages of bankruptcy attorneys that are there to listen and to help with what ever has happened.

For more information visit http://www.bankrupcy-alternative.com/for-medical-debt.html or call us directly. Here is another bankruptcy article http://www.prlog.org/10804322-bankruptcy-student-loans-an... and here is another http://www.prlog.org/10800305-bankruptcy-chapter-13-failu... for your reading enjoyment.

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