Stop Debt Collectors in Virginia » unfair

Wrong Party Collections

JKrumbein — Mon, 21 Nov 2011 04:17:25 +0000

Debt collectors sometimes make mistakes. They contact people who don’t owe the money. Not that no one owes the money, but the person they are contacting does not owe the money. They are just simply calling the wrong person.

The Fair Debt Collection Practices Act has some things to say about this. First- tell the collector that you are not the person they are looking for. Give them the information so they can see it is true. Make them give you the last 4 digits of the person’s social security number, then give them the last 4 of yours. Why do you wait for them to give you the last 4? That ensures that they do not go about changing the system first. The last thing you need is them to make it look like you, as an “update”. You should be tracking the calls on your call log.

Once they know it is not yours, they should not be calling back. You can double check this, by sending the collector a letter, by certified mail, return receipt requested, in which they are instructed to cease communications with you. This letter is commonly called (incorrectly) a “cease and desist letter.” Right thought, wrong words. A sample letter can be found here. Make sure you track all the calls on your call log.

Once they are notified not to call you again, they are permitted no further contact. If they do contact you, you should immediately contact a lawyer to assist you.

If you have been impacted by anything we mentioned here, you can make an appointment to see us.

NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!

KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.

YOU MUST BE A VIRGINIA RESIDENT.

If you are not a Virginia Resident, click here to find a lawyer near you.

OUR LEGAL FEES:

The rights afforded to you, as a consumer, under the FCRA and the FDCPA means that a corporation or party who has violated your rights may ultimately be made to pay for statutory damages, actual damages, and your legal fees. Therefore, if we agree to represent you in any case, you won’t pay any attorney’s fees unless we are successful and we recover on your behalf. We are here to serve and have assisted many consumers TO enforce their legal rights. Let us try and see if we can help you too. That means you pay no fee in your case unless we recover.

Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.303.0204
You can fax us: 804.303.0209
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
5310 Markel Rd.
Suite 102
Richmond, VA 23230

How Long Does the Automatic Stay Last?

admin — Mon, 26 Sep 2011 03:38:58 +0000

The automatic stay is a powerful remedy that comes into effect as soon as your bankruptcy case is filed, but the stay doesn’t last forever. You need to realize that this shield against creditor action is not perfect, and will not work in your favor until the end of the world.

The automatic stay remains in effect until a creditor gets an order from the judge in your bankruptcy case to lift the stay. In addition, remember that there are limitations to when the automatic stay may come into effect for only a limited amount of time – or sometimes, not at all. If you had a prior bankruptcy case in the past year and that case was dismissed, then the automatic stay exists for only 30 days (unless you or your lawyer gets a court order extending the automatic stay). And if you had two or more prior bankruptcy cases in the last year that were dismissed then the automatic stay does not take effect at all.

The automatic stay does not protect you from all collections efforts, only the most common ones, like lawsuits, letters and phone calls. It does not stop a criminal proceeding, child support from being determined, or from taxes being assessed or offset.

Finally, the automatic stay ends the minute your bankruptcy case ends- either in a Discharge or in a Dismissal.

As always, rules have exceptions and limitations. Tread carefully when relying on the automatic stay; if you don’t then you may think you’re protected when you are not.

KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.

YOU MUST BE A VIRGINIA RESIDENT.

OUR FEES: Our fees are controlled by the local rules and your situation. They may vary from “free” or probono representation to a flat fee to an hourly fee, depending on your situation.

If you are not a Virginia Resident, click here to find a lawyer near you.

Joint Accounts and Garnishment

JKrumbein — Sun, 11 Sep 2011 01:56:04 +0000

What happens when a creditor has a judgment and you have a joint bank account?

The creditor can issue a garnishment (seizure order) to the bank, and freeze all of the money. A separate notice is then sent to the other account holder. They then have the opportunity to come to court and claim that some or all of the money in the account is theirs.

In order to do so, they must come with 2 or 3 months of statements, and proof of the source of the deposits. For example, they need to bring pay advices showing that they are the one who deposited amount X on date Y.

If the joint account holder does not show up in court, the judgment creditor gets the benefit of the doubt, and gets all of the money.

One of the first things we always ask is how did the case get this far. Sometimes there are things we can do to alleviate the problem. Sometimes we will recommend Bankruptcy.

KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.

YOU MUST BE A VIRGINIA RESIDENT.

OUR FEES: Our fees are controlled by the local rules and your situation. They may vary from “free” or probono representation to a flat fee to an hourly fee, depending on your situation.

DISCLOSURE: Pursuant to Federal law, KCLS is a debt relief agency. We help people, who need those services, to file for Bankruptcy, if there is no other option.

If you are not a Virginia Resident, click here to find a lawyer near you.

Order of bill payment

admin — Mon, 15 Aug 2011 09:13:35 +0000

Last time I talked about how to deal with collectors, and I mentioned an order of payment. Here is why the order is important. The order, from last time, is: 1- Food, 2- car and house payment, 3- Utilities, 4- Current bills, and 5- Luxury expenses.

The food always comes first in the order of payment. If there is no food, the reason for a house, a car, utilities, credit card payment, etc is pointless.

The house and car payments come next. It is much easier for a lawyer to fix the problem of unsecured debt (debt where there is no right to repossess a thing), than a secured debt. Your secured creditors are hard to solve, often requiring that you make deals to pay them much more than you ordinarily would. Unsecured creditors will often settle for pennies on the dollar, over long periods of time, because payments to them are so much more tenuous. You can have defenses, or file Bankruptcy, or just not pay, and there is often very little they can do.

The utilities and taxes come next. The utilities will cut you off, and the tax man will come get things, but neither of those things happens quickly.

Then comes the unsecured bills- the medical bills, the credit cards, etc. When they get paid it will be good enough.

Lastly comes the luxury expenses- vacation, jewelry, etc. If you are able to pay all of your other bills, then there may be money left in your budget for luxury goods and services. They are not things that you need, but might want. Instead of a vacation, try a stay-cation. You get the time off, but not the expense of travel. Instead of expensive jewelry, try costume jewelry. You get some of the look, but not the expense.

Consult a lawyer and maybe a financial planner. You need to know your rights, and how to get out of this mess. Above all, don’t play ostrich. Sticking your head in the sand and saying “I can’t see you” will not make the problem go away.

If you have been impacted by anything we mentioned here, please make an appointment to see us.

NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!

KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.

YOU MUST BE A VIRGINIA RESIDENT.

If you are not a Virginia Resident, click here to find a lawyer near you.

OUR LEGAL FEES:

Dealing with Debt Collectors- a HOW TO

admin — Mon, 08 Aug 2011 02:43:58 +0000

Dealing with debt collectors

People often ask how to deal with a debt collector. Here are some simple rules that will help control the situation.

1. Pay your bills if you can. The easiest way to deal with a debt collector is to not need to- that is, pay your bills on time every month. By the way, this also means that your credit score will be as high as it can be in your situation. (there is more to a credit score than payment history, but history is the biggest part).

2. Talk to the lender before you miss payments. If you fall behind on your bills, it is often easier to deal directly with the creditor to help you fix the situation than if the account is turned over for collections, so as soon as you realize you are going to have a problem, contact the lender. Sometimes they will work with you, sometimes they will not.

3. Prioritize your debts. If you have tried dealing with the lender, the next thing to do is prioritize who gets paid first, and who gets paid last. I will talk about why this is the order next week.

a. Food comes first. If you don’t have enough money for food, then no one gets anything. Don’t be ashamed to apply for food stamps (called SNAP) and other government assistance.

b. Your car and home payments come second. This does not include second homes, second cars, etc, but does include the payment on your first and second mortgage on your home. These assets are important, because you need a roof over your head, and a way to get to work.

c. Utilities (lights, water, gas) come third. It is much easier to maintain your ability to have a roof, and a car if there is heat and air conditioning, water, etc.

d. Current bills. Medical bills, credit cards, store cards, etc.

e. Luxury expenses. Vacations, jewelry, etc. If you are paying for these things, you should be paying all of your bills. If you are not paying all of your bills, you should not spend money on luxury expenses.

4. Reduce your expenses. This is much more important for a long term problem than a short term issue. If you are out of work, but going back, conserve your cash, and keep going. If you are at a new, lower paying job, reducing your expenses is much more important. Downsize your house, downgrade the car. You need to look for a less expensive solution.

5. Communicate with the debt collectors. That first call or letter will not be the last if you don’t respond. Request verification of the debt. Start with making sure they are collecting an account that you owe. Dealing with a mistaken identity or ID theft is different from dealing with your own accounts. Verify the amounts they are requesting.

6. Consult a lawyer and maybe a financial planner. You need to know your rights, and how to get out of this mess. Above all, don’t play ostrich. Sticking your head in the sand and saying I can’t see you will not make the problem go away.

If you have been impacted by anything we mentioned here, please make an appointment to see us.

NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!

KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.

YOU MUST BE A VIRGINIA RESIDENT.

If you are not a Virginia Resident, click here to find a lawyer near you.

OUR LEGAL FEES:

The rights afforded to you, as a consumer, under the FCRA and the FDCPA means that a corporation or
party who has violated your rights may ultimately be made to pay for statutory damages, actual damages, and your legal fees. Therefore, if we agree to represent you in any case, you won’t pay any attorney’s fees unless we are successful and we recover on your behalf. We are here to serve and have assisted many consumers TO enforce their legal rights. Let us try and see if we can help you too. That means you pay no fee in your case unless we recover.

You can call us: 804.303.0204
You can fax us: 804.303.0209
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
5310 Markel Rd.
Suite 102
Richmond, VA 23230

Can I keep my pet after I file for Bankruptcy?

admin — Tue, 19 Jul 2011 01:55:19 +0000

A consumer contacted me recently and asked if they could keep their dog after they filed for Bankruptcy. They were worried that their credit card company would repossess the dog.

The answer is a 2 step process.

Step 1- is the Bankruptcy trustee going to take the animal? A Bankruptcy Trustee can only take the pet if the animal has resale value and is not exempt. In Virginia, pets and service animals (seeing eye dogs, etc) are exempt. Show animals may not be, and commercial animals may not be. In a Chapter 13, pet expenses are permitted, as long as they are reasonable, so you are permitted to continue to be able to pay for your pet.

Step 2- Is there a lender who might want to repossess the animal if you file Bankruptcy?

The answer in most cases is that most dogs, cats, fish and birds are not repossessed. There are exceptions, if the pet is a professional show pet, or otherwise very valuable, but for most pets, the answer is that the pet will be left alone. That Pek-a-poo (Pekinese/poodle mix) has almost no resale value.

Horses, cows and sheep and other farm animals are different. They may have substantial resale value.

But there is more. In order to repossess an animal, the finance company has to have a right to repossess the animal. That means that they have to have paperwork that shows that they can, and have filed the paperwork in the right place. If the pet is a $10,000 dog, they are likely to do some paperwork, but for the puppy from the pound, lenders are unlikely to want to do that papwork.

KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.

OUR FEES: Our fees are controlled by the local rules and your situation. They may vary from “free” or probono representation to a flat fee to an hourly fee, depending on your situation.

KCLS is a debt relief agency. In the appropriate circumstance, we help people file for Bankruptcy.

If you are not a Virginia Resident, click here to find a lawyer near you.

How to Deal with Debt Collectors- What the Collectors Say

JKrumbein — Mon, 18 Jul 2011 02:43:32 +0000

One of my friends is a debt collector, and I asked him what advice he would give to his mother for how to deal with a debt collector. Here is what he said. First, the best way is to never need to deal with them, by paying your bills, but if you are forced into a situation where you must, here is what you should do.

1. Talk with the collectors. Ostrich technique does not work with debt collectors, they tend to get more aggressive, and eventually sue. That first call or letter will not be the last if you don’t respond. Request verification of the debt. Start with making sure they are collecting an account that you owe. Dealing with a mistaken identity or ID theft is different from dealing with your own accounts. Verify the amounts they are requesting.

My comments: I agree, but with a variation. You should communicate in writing. It makes the record so much clearer.

2. There may be tax consequences if you settle a debt, rather than pay the full balance. Debt collectors cannot give tax advice, and if they write down the debt by more than $600, they are required to send a 1099 to the IRS, and you could pay taxes on the money.

My comments: Yes, that is true, but if you are going to compromise a debt, tax consequences should be discussed with the collector before the deal is inked. Some collectors have authority to discuss tax consequences, some do not. Be on the lookout for a 1099 for the entire balance, or the forgiven balance, as this is not correct. You should not pay taxes on the interest, only the principal. Consult a tax professional for the details on that.

3. If you have problems, complain to the Federal Trade Commission customer service hotline.

My comment: And the Attorney General of the US, the Attorney General of your state, and you should find a lawyer who deals in collection abuse, like us.

4. Request a supervisor. If you are trying to pay, but the collector on the phone cannot make the deal you can afford, request a supervisor, who may be able to make a better deal.

My comment: If you cannot make a deal pretty quickly on the phone, you should not be talking to them on the phone. It is pretty rare that a supervisor can make a deal that a line collector cannot, and they often are just another line collector on the phone anyway. Better to send them a letter that says that you request no more phone calls, and that all communications should be in writing. Better still is a letter telling them to communicate with your lawyer.

If you have been impacted by anything we mentioned here, please make an appointment to see us.

NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!

KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.

YOU MUST BE A VIRGINIA RESIDENT.

If you are not a Virginia Resident, click here to find a lawyer near you.

OUR LEGAL FEES:

You can call us: 804.303.0204
You can fax us: 804.303.0209
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
5310 Markel Rd.
Suite 102
Richmond, VA 23230

Forgot to list your Personal Injury Claim in your Bankruptcy?

admin — Mon, 13 Jun 2011 07:30:25 +0000

There is a recent Virginia Supreme Court opinion that says that the ability to bring a lawsuit, “standing”, must be in existence at the time the lawsuit is filed. In Kocher v. Campbell, the plaintiff had been in a car wreck in 2004, filed Bankruptcy in 2005, and not listed the asset of the potential personal injury claim in his Bankruptcy. He eventually voluntarily dismissed the lawsuit, then reopened his Bankruptcy to show the asset of the personal injury claim. Before the trustee abandoned the PI claim (personal injury money is exempt in Virginia pursuant to Virginia code 34-28.1), the plaintiff filed suit again. However, because he still did not have the right to bring the claim (because the trustee had not abandoned the claim) he was not the right party—he did not have “standing”. The Virginia Supreme Court ruled that the lawsuit, when brought by someone who does not have the right to bring a lawsuit- because they are not the right party- the lawsuit is a legal nullity—it does not exist. You can read about the case here.

What is the lesson we should learn from this? That EVERYTHING that you MIGHT have a right to—car accidents proceeds, inheritance, wrongful death proceeds, ANYTHING, must be disclosed to your lawyer when you are filing for Bankruptcy. This plaintiff lost the right to get anything out of that lawsuit because he did not have the right to bring it.

KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.

YOU MUST BE A VIRGINIA RESIDENT.

OUR FEES: Our fees are controlled by the local rules and your situation. They may vary from “free” or probono representation to a flat fee to an hourly fee, depending on your situation.

If you are not a Virginia Resident, click here to find a lawyer near you.

You can call us: 804.303.0204

You can fax us: 804.303.0209

You can contact us by US MAIL:

Krumbein Consumer Legal Services, Inc.

5310 Markel Rd. Suite 102

Richmond, VA 23230

Car Repoed? You may not need Bankruptcy.

admin — Mon, 13 Jun 2011 07:00:36 +0000

Everyone knows that you have to pay for the products that you purchase. Some you pay for with cash (or cash equivalent- checks, debit cards, etc). Some you pay for with credit- credit cards, loans, etc.

The “story” of a cash purchase ends there. You have paid for it, it is yours.

The “story” of a purchase made with credit does not end there. If you don’t pay the lender back, they have the right to repossess the thing you bought. The most common examples are cars and houses. Theoretically, your credit card purchases at Best Buy are in the same category, but not always.

In the case of a car loan, there are specific rules the lender must follow. These rules are governed by Virginia Code’s version of Revised Article 9 of the Uniform Commercial Code, codified at VA Code sections 8.9A-100 through 8.9A-709.

When a car loan is defaulted, they have the right to repossess, but they must give you certain notices. They must tell you that they are going to sell the car, and how long you have to get the car out of “hock”. They must tell you that if the car is sold, that you will be responsible for any short fall (“Deficiency balance”), and that if there is an overage (“Surplus balance”) that you will get that amount back (surpluses are very rare). After they sell the car, they must send you an accounting, and tell you how much the deficiency or surplus balance is.

If they don’t there are 2 consequences. The first is the one that is most important- you are not responsible for any deficiency. The second is that you have the right to sue them for the entire amount of the interest charge, plus 10% of the principal. VA Code 8.9A-625[c]. You are not entitled to attorney fees and costs.

This includes when a car dealer sells a car, and fails to obtain financing. The Virginia Supreme Court recently held Victory Nissan of Chesapeake to that in Cappo Management V, Inc. v. Britt., and awarded damages to Ms. Britt.

This is common in yo-yo sales. If you are the victim of this kind of abuse, you do not need to file for Bankruptcy protection. Let us help turn the tables on the collectors for you.

KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.

YOU MUST BE A VIRGINIA RESIDENT.

OUR FEES: Our fees are controlled by the local rules and your situation. They may vary from “free” or probono representation to a flat fee to an hourly fee, depending on your situation.

If you are not a Virginia Resident, click here to find a lawyer near you.

You can call us: 804.303.0204

You can fax us: 804.303.0209

You can contact us by US MAIL:

Krumbein Consumer Legal Services, Inc.

5310 Markel Rd. Suite 102

Richmond, VA 23230

Tax Return ID Theft

admin — Mon, 06 Jun 2011 02:18:50 +0000

The Fair Credit Reporting Act is designed to protect consumers from inaccurate or outdated information on credit reports. But there is a more insidious problem looming.

Tax Return ID Theft is on the rise. Yahoo News has a story about how it is getting bigger.

Tax Return ID Theft is when someone else uses your social security number and other personal identifiers to work or obtain other government benefits. Usually this is done by an illegal alien, who needs your personal information to give to an employer so they can work.

To combat this growing scourge, it is important for you to safeguard your information and documents. Just as the advertisements suggest, you should destroy documents with your full social security number rather than just throw them away. You are even better protected by not disposing of them at all.

If you are the victim of tax return fraud, you should contact the IRS, and send in a Tax Form 14039, a tax ID theft Affidavit. This will help some in your efforts to control the damage.

But you should also be checking your credit file. Identity thieves rarely limit themselves to just your work records. You should be ordering your consumer disclosures from the 3 national credit reporting agencies. You can do this by mail, or phone. Download the form for requesting your credit report by mail, or call the central number for ordering by phone- 877-322-8228.

NO FEE IN YOUR FCRA CASE UNLESS WE RECOVER!!

KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.

YOU MUST BE A VIRGINIA RESIDENT.

If you are not a Virginia Resident, click here to find a lawyer near you.

OUR LEGAL FEES:

You can call us: 804.303.0204

You can fax us: 804.303.0209

You can contact us by US MAIL:

Krumbein Consumer Legal Services, Inc.

5310 Markel Rd.

Suite 102

Richmond, VA 23230