Bankruptcy, Is It A Way Out - Debt-Relief

Bankruptcy, Is It A Way Out

Negotiations with creditors have failed. Repossession is imminent and
foreclosure proceedings have begun. Your income is simply not sufficient
to pay your bills, no matter how low the payments are. It may be time to
consider bankruptcy.

Bankruptcy law evolved as a reaction to the abuses surrounding debtors
prison. Before the nineteenth century a prison system existed for those
who didn't pay their bills. If a merchant filed a claim, the debtor was
incarcerated until his debts were paid. (Women were not found in debtor's
prison, not because of chivalry but because they did riot have the ability
to borrow). The lender was legally responsible for the expenses of the
prison stay, including food, but seldom paid. After all, a debtor would
have to sue in order to enforce this law, and it was rather difficult to
sue when in prison. As a result, many borrowers languished in prison for
years, surviving on what their family could bring to them or, in many
cases, simply starving to death. Although some lenders would doubtless not
object to the renewal of debtor's prison, fortunately we live in more
enlightened times. Bankruptcy was created to provide a second chance (or
third, or fourth) to those hopelessly in debt It provides a mechanism to
wipe the slate clean and begin anew. As times have changed, though, so has
the bankruptcy code. Not all debts can be wiped out. The proceedings can
be easily disqualified in the event of improper procedures. There are many
things a debtor should know before resorting to bankruptcy.

The Bankruptcy Decision

There are two kinds of individual bankruptcy: Chapter 7 and Chapter 13.
Chapter 7 bankruptcy, named for the chapter number in the bankruptcy code,
requires a full liquidation of all debts and cancels all no-exempt debts.
Chapter 13 bankruptcy is essentially a court-mandated payment plan that
sets up affordable monthly payments to your creditors,

The decision to declare bankruptcy is not an easy one. Unfortunately, many
bankruptcy attorneys recommend bankruptcy to just about anyone they
consult with. All too often frightened consumers are advised to declare
bankruptcy just to avoid a few debts. This is a mistake. Bankruptcy should
truly be a last resort as the legal system meant it to be. A bankruptcy
appears on your credit for ten years, and although lending criteria are
slowly changing, many lenders will not even consider an applicant who has
had a bankruptcy. What's more, a Chapter 7 bankruptcy can cost you most of
your property. Before making a decision to declare bankruptcy, estimate
how bad your situation really is. On a piece of paper, make a list of all
your assets and the approximate value they could be sold for. On the other
side, add up all of your debts. If the debts exceed the assets by a large
percentage, you may wish to consider bankruptcy. On the other hand, if it
seems that your situation may improve (you may get a new job or a second
income), or if your assets are of greater value or close in value to your
debts, a different approach may be appropriate.

Negotiate with your creditors

Explain your situation and ask for more time to pay. If the creditors
refuse and continue to threaten garnishment tell them such action would
force you into bankruptcy. No creditor wants to hear the "B" word. Using
bankruptcy as a threat is a very powerful negotiating tool, confronting
creditors with a choice between getting a little each month or probably
getting nothing through bankruptcy. Don't try this tactic on secured
creditors. They may decide to repossess your property to avoid having to
go through court.

Contact Consumer Credit Counseling

As mentioned earlier in the book, Consumer Credit Counseling is a
non-profit group funded by creditors to help consumers negotiate repayment
plans. It is often able to negotiate payment arrangements better than the
individual because of its constant contact with a variety of creditors. If
you can't negotiate a satisfactory arrangement, give these people a try.
Remember, the fact that you are using credit counseling may appear on your
credit record.

Consider Chapter 13 bankruptcy

This kind of filing allows you to repay your debts in a court-mandated
fashion and will appear on your credit record for only seven years, If
negotiations fail or there simply isn't enough money to make ends meet
Chapter 7 bankruptcy may be your only option. Bankruptcy does not
necessarily discharge all debts. If your debts are exempt from bankruptcy,
filing will do very little to improve your situation. If a co-signer was
used, the debt would then be owed by the co-signer, unless that person
also declared bankruptcy. In community property states a spouse's assets
and debts would also be included in the bankruptcy, assuming they are
community property. Consider all very carefully before deciding to file.

Non-Dischargable Debts - Bills You Have To Pay In Spite Of Bankruptcy

Certain kinds of debt cannot be automatically eliminated by bankruptcy
filing. They must meet certain requirements before being eliminated by
bankruptcy. If most of your debts are non-dischargeable, bankruptcy may
not solve your financial dilemma. The only ways a non-dischargeable debt
can be eliminated through bankruptcy are through an exception being
granted by the court, a certain period of time transpiring since the debt
was due, or because the creditor does not object to the discharging of the
debt. Certain debts can only be discharged by an exception. They are:

Recent Student loans

This applies to student loans that became due within the last five years.
Any extension of repayment would be added to this time period. Some
courts, furthermore, will only discharge payments that are more than five
years past due. So if the student loan was due seven years ago and the
payments were originally to be made over a five-year period, you would
still be responsible for the last three years of payments. The court may
also grant an exception to a student loan if it would produce an "undue
hardship" for you to pay it. This is rarely granted.

Taxes

Federal, state, and local taxes are not dischargeable for at least three
years after you file your tax return. Even if you've been tied up in tax
court for more than three years, any tax assessed within 240 days of
filing for bankruptcy is non-dischargeable. Property taxes are
dischargeable if they are over one year late, but the lien against your
property is not. The bottom fine is that you can count on the government
collecting its tax money eventually.

Child Support and alimony

These can only be discharged in special circumstances, which generally
include agreements that have not been court-ordered. If one spouse has
agreed to assume more than half of marital debts in exchange for lower
support payments, the court may not discharge all debts held by the spouse
for bankruptcy. Consult an attorney if this situation applies.

Fines

Neither fines from a court, judge, or government agency nor surcharges,
penalties, and restitution, as a general rule, can be discharged in a
bankruptcy. The same is true of debts incurred as a result of damage or
liability from driving while intoxicated. The debt incurred from
intoxicated driving must be established in court and a judgment must be
issued by a higher court. Small-claims, traffic, and municipal judgments
for intoxicated driving are all dischargeable. Once again, consult an
attorney.

Debts not discharged in a previous bankruptcy

If debts from a previous bankruptcy have been found non-dischargeable,
they cannot be discharged in a later bankruptcy.

Debts not listed on your bankruptcy petition

If you do not include a debt on your petition, it will not be discharged.
Many people filing bankruptcy keep one or more credit lines with small
balances or no balance out of the bankruptcy proceeding to preserve part
of their credit resources. Another strategy is to reaffirm debts on the
condition that credit continues to be offered. The creditor, confronted
with a choice between collecting nothing and maintaining your credit, will
sometimes choose the latter. Be very careful when reaffirming debt. You
are not obligated to and you should have a new written agreement spelling
out all of the new conditions.

Other kinds of non-dischargeable debts can be discharged immediately if
the creditor does not object If the creditor objects, these debts will be
judged by the court to be either dischargeable or non-dischargeable. The
creditor can ask that the debts not be discharged if they claim the
following conditions existed:

The debt was acquired by Intentionally fraudulent behavior

Fraud in this case is any dishonest act used to obtain credit. Claiming to
be someone you are not, or borrowing money when you have no means or
intention of repaying it, would be clear-cut examples of fraud. Not
disclosing certain relevant facts could also be construed as fraud. If you
make a promise and intend to keep it and believe you will be able to keep
it, that is not fraud. Creditors tend to be paranoid and believe everyone
is defrauding them, so this excuse for non-discharge is often used by
creditor's attorneys.

Debts Incurred as a Result of False Written Statements

A blatantly false credit application would qualify. The inaccurate
statement must be an important fact and one that the creditor relied on in
order for the debt to be judged non-dischargeable. A misspelled name or
minor error would not render a debt non-dischargeable. Drastically
overstating income or misrepresent a job title would be considered
fraudulent.

Fraudulent usage

If you charge "luxury goods or services" in an amount over $500 within 40
days before filing bankruptcy, the debt is likely to be deemed
non-dischargeable. The same is true if cash advances are obtained fewer
than twenty days before declaring bankruptcy. A lot of small charges, made
to avoid pre-clearance, would also be considered fraudulent if you were
over your credit limit or obviously unable to pay.

Debts resulting from illegal or malicious acts, embezzlement, larceny, or
breach of fiduciary Responsibility

Any money owed because of illegal acts such as embezzlement (taking
property left in your safekeeping), larceny (theft), or the failure to
fulfill your duties as a trustee can be non-dischargeable. The court will
usually de a definition of fiduciary responsibility.

Once you've examined your debts and determined what is dischargeable and
what is not, you can determine whether bankruptcy would enhance your
current financial situation. There are several other things you should
know before you decide whether to file.

Exempt Assets

A common misconception about bankruptcy is that you lose everything you
own to satisfy your debts. In fact, the court will allow you to keep many
things essential to your well being, and perhaps even a little bit more.
Although there is a federal exemption law, only in states and the District
of Columbia allow you to use it These states let you choose between the
state and federal exemption laws. The in states are:

Connecticut
Hawaii
Massachusetts
Michigan
Minnesota
New Jersey
New Mexico
Pennsylvania
Rhode Island
Texas
Washington
Wisconsin
Vermont

The other states require a person declaring bankruptcy to use state
exemptions.

Here are some examples of things that may be exempt, depending on the
state in which the petition is filed.

· Personal effects
· Furniture
· Cars (up to a certain amount of equity)
· Tools of a trade
· Equity m a residence (sometimes the entire residence)
· Clothes
· Household goods
· Books
· Jewelry

One very interesting exemption is the homestead exemption. When John
Connally, the former governor of Texas, declared bankruptcy a few years
ago, many people were surprised that he was allowed to keep his huge
mansion, valued at several million dollars. Texas has a homestead
exemption that allows anyone petitioning bankruptcy to keep up to one acre
in an urban area or 100 acres in a rural area, regardless of value. The
ex-governor may have had a very good attorney, but many other states also
offer homestead exemptions.

One bankruptcy strategy is to sell non-exempt property before bankruptcy
and convert it into exempt property. For example, a Texas resident might
sell non-exempt assets and use the proceeds to pay off the home mortgage
on her homesteaded property. You would almost certainly want to consult an
attorney before attempting this kind of transfer of assets, however, since
the court could very easily view such action as an abuse of the bankruptcy
laws.

Even if a certain amount of equity is exempt, your creditors can often
sell the asset to recover any excess equity you may have. If you own a car
worth $10,000, for example, and you only owe $5,000 on it and your state
exemption is $1,200, the creditor can sell the car and give you $1,200.
Some states allow 'Wildcard" exemptions that can be used to cover the
difference.

Knowing which debts are dischargeable and what the law allows a petitioner
to keep, a rational decision can be made whether to file for bankruptcy.
If you do choose to file, there are several ways of going about it-as well
as several pitfalls to avoid.

Taking Action

When you've decided to take action you can begin the filing process. If
creditors are knocking on the door and repossession, foreclosure, or
garnishment is just around the comer, it may be wise to consider using an
emergency filing to obtain an automatic stay. An automatic stay stops
creditors from taking any further action until the case goes before a
bankruptcy judge. Unlike a bankruptcy filing, which usually contains
several pages of information an emergency filing is only one page long and
contains a list of your creditors. The rest of the petition has to be
filed within fourteen days or the case is dropped. The court will send
notices of the pending bankruptcy to the creditors listed, who must cease
all further collection action. If they do not cease, send them copies of
the automatic stay and request that all further collection action cease. A
creditor can ask that the automatic stay be lifted, allowing him to
continue collection action. Only a landlord trying to evict you from a
rented dwelling will usually prevail, unless there is a long-term lease
involved. If you are renting on a long-term lease, which could be
considered an asset, the landlord may have to wait for a formal @g in
order to evict YOU.

Once the wolves are at bay, another decision will need to be made: whether
to hire a bankruptcy attorney. Attorneys, as we all know, are expensive.
In the case of a complicated bankruptcy, however, they can be invaluable.
If you have quite a bit of property or valuables, if you are trying to
move money from non-exempt to exempt assets, if your creditors try to make
your debts non-dischargeable because of fraud, or if there are any other
complications, you may wish to hire an experienced bankruptcy attorney.
Shop around. Don't be afraid to negotiate. Ask a lot of questions and talk
to several attorneys before you make your decision.

If you have a very simple bankruptcy or can't afford an attorney, invest
$15 in a good do-it-yourself bankruptcy book. It will give in-depth
information not covered in this chapter. Typing services am also available
to type up bankruptcy forms. They are reasonably priced and, in the case
of a very simple bankruptcy, can take the place of an attorney. If your
case is complicated and you can't afford an attorney, do your own
research. Read a consumer bankruptcy manual first and then consult a good
legal library. There are several legal guides devoted strictly to
bankruptcy. Once you or your attorney have prepared your case, you're
ready for formal work.

The Filing Process

All the appropriate papers can be obtained from your local bankruptcy
court. Consult the yellow pages under Government Services (usually in the
beginning of the book) for an address and phone number. The court allows
you fourteen days from the date of an emergency filing to complete the
formal process. If Chapter 7 bankruptcy is being filed, you will need to
send in the following forms after you have received them from the court:

· Statement of Financial Affairs.

· Schedule of Current Income and Current Expenditures.

· A schedule describing your debts.

· A schedule describing your property.

· A schedule listing exempt property.

· A summary of the above schedules.

· Statement of Intention in regard to your secured property and what you
intend to do with it

· Statement of Executory Contracts describing contract that will need to
be fulfilled, such as auto leases.

· Bankruptcy Petition cover sheet.

· Mailing addresses of all creditors.

· Any required local forms.

A fee will also be assessed, usually $90, due at the time of filing. The
court will usually accept installments of a four-month period. An
application for installments must accompany the petition.

After your petition is filed, a meeting of the creditors will be arranged.
The court appoints a trustee to preside over the meeting and to be
responsible for the liquidation of assets. With most smaller bankruptcies,
only the person filing and the trustee will attend. The trustee, who is
usually a local attorney, will ask several questions about the information
on the bankruptcy documents. Call and ask the court clerk what papers you
will need to bring (usually financial statements or sometimes even tax
returns). If a lot of property is involved, especially if it is nonexempt,
property, your creditors may show up to protest any exemptions. They may
also attempt to grill you about your intent to pay the bill or about lying
on your application. Answer truthfully and there shouldn't be a problem.

If the creditors' attorneys become abusive, demand a hearing before the
bankruptcy judge before the proceeding goes any further. If the creditors
object to any of your exemptions, they have 30 days after the creditor's
meeting to file an objection with the court. The court will schedule a
hearing and you will be given the opportunity to respond, although you
don't have to. A creditor may also try to claim a debt as
non-dischargeable because of fraudulent acts, a @ or malicious act, or
embezzlement or theft. He can only accomplish this if he successfully
raises the objection within sixty days of the creditors' meeting. To
defend yourself, you or your attorney will have to file a written response
and be prepared to argue your case in court.

Once all the requirements have been met and your intentions have been made
clear, the court can declare the bankruptcy discharged. No formal hearing
will be held unless you have chosen to reaffirm your debt in which case
the judge will want to be sure that you understand what you are doing.
After this time, provided the creditors do not raise any objections, the
dischargeable debts are erased.

Picking Up The Pieces

Bankruptcy was once the lowest disgrace that could befall someone. Today,
however, it is commonplace. Corporations declare bankruptcy to get out of
contracts or avoid legal judgments. Individuals rely on it to protect them
from a society that extends credit too quickly.

Bankruptcy does not mean that you will automatically be denied all credit
for ten years. In fact, many firms look at bankruptcy as a responsible way
of discharging debts when there is no other way out. Creditors fear
bankruptcy, but they also realize that if they lend to someone who has
declared bankruptcy, they need not worry about another bankruptcy for
seven more years (you can only file once every seven years). If you happen
to have a good explanation for the bankruptcy, such as medical bills,
divorce, or some other catastrophic event, a creditor may be willing to
overlook it and extend credit. Ask potential creditors about their policy
toward bankruptcies. Their responses may be surprising.

Darryl Power over 3 years in online marketing, 1 year in Pay-Per-Click
advertising and 7 years of business management.

http://www.home-grownventures.com

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Debt Collectors; And what you can do to Get Them Out of your Life - Debt-Relief

Debt Collectors; And what you can do to Get Them Out of your Life

FTC opinion letter on validation Section 809(a) of the FDCPA, 15 U.S.C. §
1692g(a)

This will be a pretty long lesson and will cover an integral part of
validation which is the receipt of the initial or first contact with the
debtor by a collector which usually gets thrown in the trash can if the
debtor has not the funds to pay. That is a very serious mistake. One
should never throw those collection letters away. They may very well be a
vital part of your defensive strategy later down the road.

This lesson is taken from a part of an FTC opinion letter on validation
and tells us what that first letter must contain at the very least, and
what it must do and must not do so this is an important lesson indeed..

This course was originally designed for attorneys and was designed to
teach them avoidance of problems. Naturally, we use their lessons against
them and do all we can to get them to screw up so they can be sued. You
will find a lot of ingenious tricks and traps can be devised to make them
goof it up and lose their collection efforts and their cases against you.

---------------------------------------------------------------

SECOND ISSUE:

Where an attorney debt collector institutes legal proceedings against a
debtor but has no prior communications with the debtor, are the
requirements for the validation of debts set forth in Section 809 of the
FDCPA supreme to state law or state court rules that otherwise prohibit
the inclusion of the validation notice on court documents? In responding
to this issue, the Commission notes first that Section 809(a) of the
FDCPA, 15 U.S.C. § 1692g(a), provides:

(a) Within five days after the initial communication with a consumer in
connection with the collection of any debt, a debt collector shall, unless
the following information is contained in the initial communication or the
consumer has paid the debt, send the consumer a written notice containing -

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt
of the notice, disputes the validity of the debt, or any portion thereof,
the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in
writing within the thirty-day period that the debt, or any portion
thereof, is disputed, the debt collector will obtain verification of the
debt or a copy of a judgment against the consumer and a copy of such
verification or judgment will be mailed to the consumer by the debt
collector; and

(5) a statement that, upon the consumer's written request within the
thirty-day period, the debt collector will provide the consumer with the
name and address of the original creditor, if different from the current
creditor.

Section 803 (2) of the FDCPA, 15 U.S.C. § 1692a(2), defines the term
"communication" as "the conveying of information regarding a debt directly
or indirectly to any person through any medium." In its Staff Commentary,
Commission staff stated that the term "communication" "does not include
formal legal action (e.g., filing of a lawsuit or other petition/pleadings
with a court; service of a complaint or other legal papers in connection
with a lawsuit, or activities directly related to such service)

" 53 Fed. Reg. at 50101, comment 803 (2)-2. Similarly, in the introductory
portion of the Staff Commentary, Commission staff opined that "Attorneys
or law firms that engage in traditional debt collection activities
(sending dunning letters, making collection calls to consumers) are
covered by the FDCPA, but those whose practice is limited to legal
activities are not covered."

(3) Id. at 50,100. Seven years after the Staff Commentary was issued, the
United States Supreme Court held that the FDCPA's definition of "debt
collector," Section 803(6), 15 U.S.C. § 1692a(6), "applies to attorneys
who 'regularly' engage in consumer-debt-collection activity, even when
that activity consists of litigation." Heintz v. Jenkins, 514 U.S. 291,
299 (1995).

In arriving at this conclusion, the Court explicitly considered and
rejected Commission staff's introductory remark regarding the coverage of
litigation attorneys. Id. at 298.

In light of Heintz, the Commission concludes that, if an attorney debt
collector serves on a consumer a court document "conveying information
regarding a debt," that court document is a "communication" for purposes
of the FDCPA.

(4) If an attorney debt collector has had no prior communications with a
consumer before serving a summons or other court document on the consumer,
that document would constitute the "initial communication" with the
consumer if it conveys information regarding a debt.

The attorney would therefore have to include the written notice mandated
by Section 809(a) (often referred to as the "validation notice") in the
court document itself or send it to the consumer "within five days after
the initial communication." According to the ACA's Request, some "state
laws or state court rules prohibit the inclusion of additional language
such as the validation notice on documents filed with courts." The
association asks whether the requirements of Section 809(a) are "supreme
to," and thus preempt, these state laws or state court rules. Id.
Preemption cases generally proceed from "the starting presumption that
Congress does not intend to supplant state laws." New York State
Conference of Blue Cross & Blue Shield Plans v. Travelers Ins. Co., 514
U.S. 645, 654 (1995).

(5) According to the Court in English v. General Electric Co., 496 U.S. 72
(1990): State law is pre-empted under the Supremacy Clause, U.S.
Constitution Article VI, cl. 2, in three circumstances.

First, Congress can define explicitly the extent to which its enactments
pre-empt state law. Pre-emption fundamentally is a question of
congressional intent, and when Congress has made its intent known through
explicit statutory language, the courts' task is an easy one.

Second, in the absence of explicit statutory language, state law is
pre-empted where it regulates conduct in a field that Congress intended
the Federal Government to occupy exclusively. Such an intent may be
inferred from a "scheme of federal regulation . . . so pervasive as to
make reasonable the inference that Congress left no room for the States to
supplement it," or where an Act of Congress "touches a field in which the
federal interest is so dominant that the federal system will be assumed to
preclude enforcement of state laws on the same subject." . . . .

Finally, state law is pre-empted to the extent that it actually conflicts
with federal law. Thus, the Court has found pre-emption where it is
impossible for a private party to comply with both state and federal
requirements, or where state law "stands as an obstacle to the
accomplishment and execution of the full purposes and objectives of
Congress." Id. at 78-79 (omission in internal quotation in original)
(citations omitted).

The preemption provision of the FDCPA, Section 816, 15 U.S.C. § 1692n,
provides: This title does not annul, alter, or affect, or exempt any
person subject to the provisions of this title from complying with the
laws of any State with respect to debt collection practices, except to the
extent that those laws are inconsistent with any provision of this title,
and then only to the extent of the inconsistency. For purposes of this
section, a State law is not inconsistent with this title if the protection
such law affords any consumer is greater than the protection provided by
this title.

The Commission does not believe that this section expressly preempts state
laws and court rules that prohibit attorney debt collectors from including
validation notices in court documents. The quoted provision makes express
that Congress did not intend to preempt the field, but allowed only for
conflict preemption. However, there is no conflict preemption here. First,
there is no conflict preemption based on impossibility of compliance
because it is possible for attorney debt collectors to comply with both
the federal provision and the state provisions.

(6) Instead of including such notices in court documents, attorney debt
collectors in jurisdictions that prohibit validation notices in court
documents may deliver the notices to consumers via some other medium --
either before serving the court document on the consumer or, if the court
document is truly the first communication with the consumer, within five
days of serving the court document.

(7) Second, there is no conflict preemption based on state law standing as
an obstacle to the full accomplishment and execution of Congressional
purposes and objectives. As Congress declared in Section 802(e) of the
FDCPA, 15 U.S.C. § 1692(e), the purpose of the panoply of protections
under the federal debt collection statute is: to eliminate abusive debt
collection practices by debt collectors, to insure that those debt
collectors who refrain from using abusive debt collection practices are
not competitively disadvantaged, and to promote consistent State action to
protect consumers against debt collection abuses.

The state provisions about which you inquire do not prevent consumers from
receiving the full panoply of protections from abusive debt collection
practices afforded by the FDCPA. The only FDCPA provision that could be
affected by these state laws and court rules is Section 809(a). As noted
above, an attorney debt collector who is prohibited from including the
validation notice in court documents may deliver the notice to consumers
before serving the consumer with the court document or, if the court
document is the first communication with the consumer, within five days
after serving the court document.

Thus, even in a jurisdiction that prohibits validation notices in court
documents, a consumer will receive the validation notice and learn, for
example, that the debt collector must provide the consumer with written
verification of the debt if the consumer disputes the debt within thirty
days.

State legislation that prohibits validation notices in court documents
also does not stand as an obstacle to the promotion of "consistent State
action to protect consumers against debt collection abuses." Consumers
will receive their validation notices in jurisdictions that prohibit
validation notices in court documents as well as in jurisdictions that
permit the practice.

After reviewing state laws and court rules that prohibit validation
notices in court documents under a preemption analysis, the Commission
concludes that such state legislation is not preempted by the FDCPA. By
direction of the Commission. Donald S. Clark Secretary Endnotes

1. Section 809(b), 15 U.S.C. § 1692g(b), provides: If the consumer
notifies the debt collector in writing within the thirty-day period
described in subsection (a) that the debt, or any portion thereof, is
disputed, or that the consumer requests the name and address of the
original creditor, the debt collector shall cease collection of the debt,
or any disputed portion thereof, until the debt collector obtains
verification of the debt or any copy of a judgment, or the name and
address of the original creditor, and a copy of such verification or
judgment, or name and address of the original creditor, is mailed to the
consumer by the debt collector.

2. In the Staff Commentary on the Fair Debt Collection Practices Act, 53
Fed. Reg. 50097 (1988) ("Staff Commentary"), and staff opinion letters,
Commission staff have consistently read Section 809(b) to permit a debt
collector to continue to make demands for payment or take legal action
within the thirty-day period. See 53 Fed. Reg. at 50,109, comment 809(b)-1
("A debt collector need not cease normal collection activities within the
consumer's 30-day period to give notice of a dispute until he receives a
notice from the consumer."); letter from John F. LeFevre, FDCPA Program
Advisor, to S. Joshua Berger (May 29, 1997): We interpret the "thirty-day
period" as a period within which consumers must dispute their debts in
writing in order to avail themselves of their Section 809(b) rights, but
not as a "grace" period.

Thus, we believe that there is nothing in the Act that prevents you from
filing suit during this period, so long as you do not make any
representations that contradict Section 809(b).

Kenneth M. DeLashmutt "Predatory Lending Defense Specialist"

email: educationcenter2000@cox.net

website: http://www.educationcenter2000.com

Mr. Kenneth M. DeLashmutt is a recognized Predatory Lending Defense
Specialist and an authority on the subject of predatory lending practices,
foreclosure defense, consumer protection and debtor's rights.

He has more than 10 years experience in the area of consumer protection
related to predatory mortgage lending practices and debt resolution. He
has provided regulatory consulting services nationwide to financial
institutions, consumers and regulatory agencies as well as real-estate and
financial services organizations.

Areas of Expertise include: Banking Operations and Administration; Lending
Policies and Laws to Protect Consumers, Mortgage Brokers and Mortgage
Lender Predatory Lending Custom & Practice; Credit Administration;
Bankruptcy and Foreclosures; Trust & Fiduciary Issues / Operations; Real
Estate Transactions; Consumer Protection Litigation and Foreclosure
Defense. email: educationcenter2000@cox.net website:
http://www.educationcenter2000.com

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Start Small and Your Wealth Will Get Bigger - Debt-Relief

Start Small and Your Wealth Will Get Bigger

We've all heard the phrase, "You have to start somewhere." Nothing could
be truer of creating wealth and prosperity in your life. Sometimes the
idea of becoming wealthy can seem so overwhelming that we don't know where
to begin. After all, if we're up to our eyeballs in debt or barely making
it, how can we possibly think about getting wealthy?

Start small. This is one of the greatest wealth creating habits. If an oak
tree can spring forth from a miniscule acorn, a money tree can certainly
grow from a tiny bit of seed capital. Starting small can work in two ways
to generate wealth: saving small amounts and investing small amounts.

Let's start with the savings end of the equation. If you're spending equal
or more than your income each month (and most people are), then you need
to slowly decrease your spending. It's easier than it seems-just start
small. Each month, choose one way in which you will decrease your
spending. For instance, if you go out to eat once a week, see if you can
cut that down to just once or twice a month. Are you saving a whole lot?
No. But you ARE saving, and that's what's important. It's also important
that you don't spend more in another area of your life to "make up" or
reward yourself for spending less in your chosen area. If you consistently
spend less each month, you will eventually begin to make headway. This
wealth creating habit will help you develop your wealth slowly but
constantly.

The great thing about spending less each month is that the results are
cumulative. Let's say the first month you decide to eat out half as much
as you usually do, saving you $20 a month. The second month, you decide to
spend less on entertainment by switching from your premium cable service
to the less expensive service. This switch saves you $10 a month, plus you
save the $20 from going out to eat less. You saved a total of $30 the
second month, and $20 the first month - that's $50 in just 2 months. Now,
let's carry that further. If you were to reduce your expenses by $15 each
month (cutting an additional $15 of expenses each month), by the end of
the year you would have saved $1,170!

If you've got thousands in debt looming over your head, $1,170 may not
seem like much, but you have to start somewhere. Starting small and being
patiently methodical is better than never starting at all! Plus, every
month your level of savings increases until your small start becomes a
giant tidal wave of savings. This will help you get out of debt faster and
begin building your wealth. When you start saving, even in small amounts,
you will have implemented another great wealth creating habit!

About The Author

Stephanie Yeh is deeply committed to the study and experience of
prosperity and to helping other people achieve and experience prosperity.
With the help of a strong 15-year network marketing business, Stephanie
and her partner have helped many people achieve their prosperity goals.
Her current project, the Journeyman Wealth Program, is aimed at helping 15
people a year fully achieve their dreams. Stephanie's Prosperity Abounds
website works on the basic principle that "You are the creator of your own
reality!". Get more details on her website at
http://www.prosperity-abounds.com.

info@prosperity-abounds.com

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Mr. Cheapies Frugal Budget Tips - Debt-Relief

Mr. Cheapies Frugal Budget Tips

So you feel like a hamster spinning your wheel? The faster you run, the
faster the wheel spins. Just when you get a raise, you notice the price of
hamster wheels jumps!

Mr. Cheapie is here with his super-charged budget-cutting tips.

One of the biggest wastes of money is restaurant meals. You can cook a
meal at home for about 2 cents a plate. Just put leftovers in the
microwave, and Presto!

Those same leftovers cost a lot more at a restaurant. They call it "the
buffet", and they sell it to you for $10.95.

Consider also the steak dinner that costs, say, $7 at home. At the
restaurant, you pay $13.95 for the same meal. Or, if you want fancy
napkins, $39.95.

Plus tax.

Funny thing about eating at home; you don't pay tax. But step into a
restaurant, and guess who jumps in: "Hello, my name is Taxman. I'll be
your waiter tonight. Would you like to start with something to drink?
Perhaps a very nice glass of wine? That will be 50 cents, plus the price
of the wine, of course."

"Why would you tax my wine?" Mr. Cheapie wonders. "It's not like the
government made it."

"Who do you think keeps this country free and safe so that you can enjoy
your wine?" Taxman demands. "Do you think Saddam Hussein would let you
drink wine if he was still in power?"

"I don't see how he could stop me."

"Hah!" Taxman replies. "He has spies everywhere. He knows you drink wine
and he has targeted this very bottle to self destruct."

"Actually, I don't drink wine. His spies must run on the same technology
as his scud missiles," Mr. Cheapie muses. "How about a steak dinner?"

"An excellent choice," Taxman beams. "That will be $1.73, plus the price
of the meal."

"Now what?" Mr. Cheapie demands. "Are you saying that Saddam is targeting
my steak."

"Of course not," Taxman giggles. "We have him locked away. But watch out
for North Korea."

"Why?"

"North Koreans are starving," Taxman explains. "They don't have steaks."

"Ah, so the North Korean government wants to take my steak and give it to
their citizens."

"Not a chance. That would violate the official North Korean policy of
starvation for all. They would never feed your steak to the people. But
they would hold it up to taunt them," Taxman grins. "Then they would throw
it into the fire to fuel a nuclear missile trained on this very table you
are sitting at."

"Which is why you need to tax my steak."

"Exactly," Taxman nods.

"It's like a security deposit."

"That's right," Taxman smiles.

"It's protection money."

"You understand," Taxman winks.

"It's your tip."

"That's what I sa ... no it's not! It's national defense," Taxman insists.

At home, you never have to tip the microwave. But, at the restaurant, your
waiter expects 15%.

Mr. Cheapie has discovered a legal loophole to save 15% on your restaurant
bill. According to a national Mr. Cheapie survey, your plate usually has
15% too much food on it. Set aside 15% of your meal. When your waiter
comes to collect his tip, pay him in food. Your waiter raved about today's
special, so Mr. Cheapie is sure he will appreciate having some for himself.

If Taxman is your waiter, don't actually give him the food. Just taunt him
with it -- then mail it to North Korea. Then they won't have to blow up
your table to get it themselves. Why pay for national defense when the
postal service can protect your freedom to eat for just the cost of a
stamp?

Aren't you glad Mr. Cheapie offers such useful, free advice?

About The Author

David Leonhardt - sign up for his weekly satire column up at
http://www.TheHappyGuy.com/positive-thinking-free-ezine.html or read more
columns at http://www.TheHappyGuy.com/self-actualization-articles.html.

Join in the happiness at http://www.thehappyguy.com, info@thehappyguy.com

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The 5 Secrets to Getting Out of Debt Fast - Debt-Relief

The 5 Secrets to Getting Out of Debt Fast

As they stare down at a teetering pile of bills, so many consumers wonder
how they racked up such a large debt. The answer boils down to simple
mathematics.

"On a basic, fundamental level, the problem is created by spending more
than you make," says Brad Stroh, co-CEO of the San Mateo, California-based
Freedom Financial Network, LLC, a company that specializes in debt
resolution services.

The reasons for doing so, he notes, are varied:

? Spending addictions

? Lack of budgeting (mistaking the amount of money coming in and going out)

? Loss of income (reduced hours, layoffs, forced to leave the workforce)

? Increased costs (health-related expenses, fuel and other basic living
expenses)

? A personal hardship (divorce, medical illness, loss of a loved one or
other major changes in a person's life)

You can, however, get out of debt-but it takes commitment. Here are 5
steps to accomplishing your goal.

1. Start Planning-and Saving

"The only way to guarantee solid financial footing is through proper
planning-and that's where most consumers go wrong," Stroh says. "Proper
planning means monthly budgeting of cash flow, combined with saving for
long-term security."

Stroh recommends saving at least 5% of your income to ensure long-term
financial security.

"Of course, this percent will vary by age group and the individual's
financial goals and objectives," he says. "Younger people can expect to
spend their early years saving less of their income, paying off student
loans and debts incurred during periods of lower income. Older individuals
should be planning for retirement and saving a larger share of income."

2. Seek Professional Help

If you are facing financial hardship, do not procrastinate when it comes
to seeking professional advice.

"People often wait too long," Stroh says. "If someone is living paycheck
to paycheck, is behind on any revolving financial obligations (including
credit cards), is using credit cards to pay for necessities, or is facing
collection, he should consider getting immediate advice from a
professional debt management firm or financial advisor."

3. Stop Spending

If you continue to spend money, despite your ever-growing debt, you likely
have a bona fide addiction that requires psychological intervention.

"Debt problems are frequently symptomatic of more fundamental personal
issues, such as reticence to address difficult financial problems," Stroh
says. "Spending addictions can have many causes, including lack of
personal confidence and fulfillment. Similar to many other addictions, a
spending addiction can fill a void in an individual's life-albeit with a
fleeting source of satisfaction. People with spending addictions
constantly strive for the 'high' that they receive from buying clothes,
cars and other goods. This leads to a long-term problem when they cannot
meet the consequent financial turmoil that comes when the bills arrive.
For anyone who may think he has a serious spending addiction, we advise
seeking professional counseling or therapy to resolve the fundamental
sources of this addiction."

4. Start Communicating

If you're like many consumers with outstanding debts, the last person you
think about speaking with is the creditor-the company you've been avoiding
at all costs.

"Not contacting your debt creditors to discuss and develop a plan for
paying, settling or reducing the principal amount and/or interest on the
debt" is one of the worst mistakes you can make, says financial expert
Ivan Gelfand, president and CEO of Pepper Pike, Ohio-based Ivan Gelfand,
Inc., and author of "Your Money, Your Future" (to be published in April).

He also recommends contacting relatives or friends for temporary
assistance in reducing debt and making payments, which will lower your
outstanding debts' interest rate.

5. Conquer Denial-Today!

Many consumers who recognize-and even accept the fact-that they have a
spending addiction refuse to address their problems, according to Stroh.

"Budgeting is not fun," he says, "but dealing with creditors is even less
fun. Many people will therefore bury their heads in the sand, hoping their
problems will go away. Unfortunately, outside of winning the lottery or
getting a windfall inheritance from a long-lost uncle, budgeting and
consulting with a professional counselor are the only ways to successfully
resolve financial problems."

--------

Fox Symes assists all Australians discover the truth about their debts and
how they can rapidly reduce them. There are methods available to the
Australian public and you can discover how to use these to assist you in
reducing your debt with a free phone consultation from Fox Symes. Visit
http://www.foxsymes.com.au or contact them directly on 1300 361 204.

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