For the last several weeks LTD Financial Services and United Recovery Systems have been running ads in the Houston Chronicle for Collectors.  While this is no big surprise what with the economy like it is, it is surprising to see them admit to some of the benefits they offer:  “great bonus program, plus full benefits”, “above industry standard commission rates”, and contests.   Contests is the one that bugs me.  The bill collectors have a contest to see who can be the meanest? Or, how many people can they make cry? Or, how many people they can get to go borrow the money to pay them? Or, the list could go on. 

So the next time a bill collector calls you and is pushy, you might want to ask him or her to describe the contest that they are participating in, or how much commission is she or he going to make if you make a payment.  Let the collector know that you know they are going to receive an incentive by bullying you into a payment.

Or, you could talk to a bankruptcy attorney to see if bankruptcy is an option for you.  Bankruptcy will stop the debt collector calls.

One of the questions you will need to answer when you file your bankruptcy schedules is how much cash you have.  This means how much cash you have in each and every bank account, savings account, money market account, buried somewhere, someone else is holding for you, that you have  on your person, in your wallet, in your piggy-bank, in the cookie jar, and so on.   

Most people don’t have a lot of cash but I am running into more and more clients who don’t understand what cash means.  If you are not sure it falls into the cash and/or bank account category, please discuss the item in question with your attorney. 

If you don’t list everything you own, you are committing a bankruptcy crime that could cause you to not get your bankruptcy discharge.

The simple answer is yes.   Filing bankruptcy will stop the sale of the property – if filed before the time of the sale and the taxing entity is notified of the bankruptcy filing.

If a person is substantially behind on his or her property taxes, he may want to file a Chapter 13 which gives the him up to five years to pay back the delinquent taxes; however, the person must be eligible to file Chapter 13.    If the amount can be paid pretty quickly – usually within 30 days, the person may be able to file a Chapter 7, provided the person qualifies to file a 7.

 In Texas, ad valorem taxes (real estate property taxes) are given an automatic priority and are given the the highest priority lien status allowed.  The taxes automatically become liens on January 1st of each year. 

When I ask a client how much credit card debt he or she has, I often get a confused look followed by: ” Do you mean just the debt I want to include in my bankruptcy?” or “Do you mean just the debt I am behind on?” or something similar.    No, what I mean is – how much total credit card debt do you have.  This is an important question as it may affect the advice I give you for your particular situation.

Additionally, if you decide to file for bankruptcy, you cannot pick and choose which creditors to include in your case.  You MUST list EVERYONE you owe money to – even if it is a debt you want to continue to pay – like your home or car.  If you don’t list a creditor, that debt may not be discharged.  Further, you are signing your schedules under penalty of perjury that you have listed ALL of your debts.  If you didn’t list all of them, you are committing  a bankruptcy crime.

Unless you are a customer of the bank, Houston bank First Bank in Houston refuses to break a $100.00 bill into smaller bills. My son experienced this recently when he needed to pay someone in exact cash and only had a $100.00 bill.

What are banks thinking?  I could understand if it was a check, but U.S. currency?!!!  Maybe I need to file a complaint with the banking commission.  Banks are really pushing the limits these days.   Are banks going to start charging to break currency into smaller currency?  I suppose this is a real possibility since they charge people to take change.  If banks keep adding fees, they may well find themselves without any customers.  Just my two cents!

NO!  Despite what a bill collector may tell you.  You will not be arrested or placed in jail for non-payment of a debt.  If a debt collector tells you that you can be, contact a lawyer immediately as that bill collector has violated the Fair Debt Collection Practices Act (FDCPA).

Yes, if a judgment has been obtained.  The judgment creditor can request the court to issue a garnishment writ.  The judgment creditor can garnish your bank accounts, savings accounts and any non-exempt personal property of  yours held by a third party.  While wages may not be garnishable in Texas, your wages lose their character of wages once they are deposited in your bank account.   If you have been sued, you should consult with an attorney.

The answer is yes.  Under the federal Fair Credit Report Act (FCRA), a credit bureau may furnish a credit report on a consumer in connection with the collection of a debt.

Pamela Stewart, a Houston/Victoria (Texas) consumer bankruptcy lawyer spoke recently about bankruptcy at The People’s Law School sponsored by The University of Houston Law Center  – Center for Consumer Law.

Highlights of the session included discussion of the different chapters of bankruptcy, who is eligible to file a Chapter 7 or Chapter 13 bankruptcy, the meeting of creditors that all debtors are required to attend, reaffirming debts – particularily for homes and vehicles, exempt versus non-exempt property, and the means test.

The People’s Law School is a free program focused on sharing information with the public about their legal rights and the role these rights play in their daily life.  Ms. Stewart also spoke about bankruptcy at the The People’s Law School held in April.

A friend recently showed me his Chase savings account statement revealing Chase paid him a measly $0.62 interest for the month when he had over $80,000.00 in the account!  Yet Chase is charging this same customer 27.44% on his Chase credit card!

To add insult to injury, my friend called Chase and asked for an interest rate reduction on his credit card.  The first Chase rep told him that due to world wide economic conditions they could not offer him a lower interest rate.  He then asked to speak with a supervisor only to be told the same thing.   He hasn’t had any late payments on his account and the balance owed on the card is less than 1/2 of his credit limit.  He advised the Chase supervisor that he would close all of his accounts with Chase- she didn’t care.  

What are banks thinking?  They nickel and dime their customers to death with fees for anything and everything, they pay the least amount they can get away with and then gouge their customers with exorbitant interest rates!  Corporate greed is out of control!