The North Carolina Bankruptcy Information Blog

By now most consumers know that one of the first things to take a hit when debt problems come knocking is the good ol’ credit score. Sometimes people end up with a bad debt hanging like an albatross around their necks–and dragging down their credit scores–for years. But there is light at the end of the tunnel: negative information can only legally remain on your credit report for so long before it gets wiped away. After 7 years, you can expect a bad debt to be scrubbed from your report; but can you rely on the credit reporting system to ensure you’re not getting a raw deal?…

Okay, so this post isn’t exactly keeping with the recent holiday spirit, but it’s a pretty compelling topic given the nature of our blog. And sometimes, it takes extreme colors to paint the right picture.

A Tampa, Florida woman is suing a debt collection company for wrongful death relative to her husband’s 2005 heart failure. Dianne McLeod is charging that the ceaseless and what can rather easily be deemed as remarkably unprofessional phone calls contributed directly to the stress that initiated her husband’s cardiac arrest.

In 2002, not long after her husband had to be airlifted to a hospital because of heart trouble, the following message from an alleged Green Tree Servicing representative was left on the McLeod’s answering machine:

“Stanley McLeod, you need to call Green Tree and get your act together and make your payments on your mortgage and quit playing these games … Why don’t you have that helicopter pick you up and bring that payment to the office?”

Making such a message even more hard to believe is the fact that it was because Stanley could no longer work that contributed to the family’s debt problem.…

When you are dealing with debt collectors, it’s essential to stand up for yourself and remember that your rights are protected by federal law. Debt collectors like to intimidate debtors by making them feel like they play fast and loose with standards of debt repayment. Yet in reality, it is often the debt collectors who play fast and loose with the law. Debt re-aging is a great example of this.

Re-aging a debt is exactly what it sounds like. Debts “go bad” when you stop paying them, and they’re reported on your credit report as having “gone bad,” which adversely affects your credit rating.…

Dealing with debt collectors is no picnic. Despite increased efforts by the government to protect Americans from some of the more questionable debt collection practices, hapless consumers continue to face the rude, callous pestering of debt collectors as they struggle to stay on top of their finances. While the mental distress caused by debt collectors may be no surprise, this case may well present an issue of first impression: Dianne McLeod, a widow residing in Florida, is suing her mortgage company, Green Tree Servicing, for her husband’s wrongful death. In the suit, McLeod alleges that the illegal practices of Green Tree’s collectors led to her husband’s untimely death of heart failure at the age of 57.…

One aspect of bankruptcy you don’t hear much about is what happens after you file. One of the steps that tends to be a little disconcerting for those who have just filed Chapter 7 or Chapter 13 is the “Meeting of Creditors.” It just sounds so intimidating, doesn’t it?

Truthfully, it isn’t.

Meetings of creditors take place a few weeks after your attorney has filed your case and you have provided him or her with your most recent income information and list of debts. The meeting is essentially an opportunity for every one with an interest to hear your case and accept or challenge its terms.…

The people creditors hire to do the dirty work of collecting on debts can be the most irritating and persistent bullies you’ll be forced to deal with. Many consumers are not aware that Congressional law exists to protect them against the nasty business practices adopted by some of these bill collectors. As a matter of fact, this law has been on the books since 1977. The Fair Debt Collection Practices Act or FDCPA is an important tool for consumers to rely upon when fending off debt collectors who act like bullies.

So you’re sick of dealing with bill collectors and you want them to take a hint.…