The North Carolina Bankruptcy Information Blog

Getting a pay day loan can be ever so tempting. You think to yourself, I only need a “bridge” until my next paycheck; this is a “short term” solution for a “short term” problem; this is an easy “fix”; I can get help without going through the humiliation of a credit check I’m bound to fail. These are the kinds of messages pay day loan companies relay in their advertising, which also goes a long way to generate the impression in you that these companies–unlike the large, impersonal banks who don’t seem to want your business–are run by people who just want to help you.…

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.…

The much-lauded Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act) was signed into law on May 22, 2009, with the promise of protecting consumers from predatory and underhanded practices of credit card companies. While the most significant changes imposed by the law won’t become effective until February 2010, there were some that became effective immediately. Upon it’s passing, the law gave cardholders:

• at least 21-days between the date a bill is mailed and the due date (changed from the 14-day notice requirement);
• at least 45-days notice before Credit Card companies can make significant contract changes, particularly with regard to interest rate and fee increases (changed from the prior 15-day notice requirement); and
• the right to opt out of interest rate and fee increases.…

In 2005, Congress passed the most dramatic reforms the laws of bankruptcy had seen for 20 years. You may have heard of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 already because it’s a sore topic with bankruptcy lawyers and other consumer and debtor advocates. Though the name of the law suggests that Congress also intended to protect consumers, the fact that “abuse prevention” appears first in the title is telling.

Unfortunately, Congress gave in to lobbying efforts by credit card companies and other large stake holders which fueled the belief that folks in America were out to game the system.…

The automatic stay is one of the greatest benefits that filing for bankruptcy has to offer. However, it is important to note that there are some exceptions to the applicability of automatic stay rights.  You will not be protected from criminal prosecution, divorce proceedings, government regulatory procedures (except for efforts to collect on pre-petition debt–these will be barred) and efforts to collect on child support and alimony, or even modifications of the support orders.  Regular deductions for payments of a loan against a retirement plan may also continue even after the stay.

One of the most commonly encountered exceptions to the automatic stay relates to purchase money security interests.…

Immediately after filing for bankruptcy, you can let out a sigh of relief for the first time in a long time― finally you will catch a break from your creditors!  One of the fundamental protections for debtors in the bankruptcy process is the automatic stay, which provides a much needed break from the relentless collection efforts of ruthless creditors.  An automatic stay is an injunction― essentially, the court bars further attempts at collection and can impose judicial punishments for disobeying the stay. Although some exceptions apply, creditors must cease their attempts to collect debts from you or face sanctions.

One of the great features of the automatic stay is that is truly automatic.…

You may be worried that bankruptcy will have a negative effect on your employment. How can you take back control of your financial life if, for example, you get fired and can’t earn any money? Lots of people worry about this. You are not alone. This is a completely understandable fear. Fortunately, that’s all it is…just a fear. The truth is that it is illegal for your employer to fire you or anyone else for filing bankruptcy.

Besides, you’re a good employee, right? Why would an employer fire a good employee? That hurts the employer. Simply put, not only is it illegal, but it’s just not in the employer’s best interest.…

One of the worst aspects of having debt troubles are the calls from bill collectors. Who doesn’t dread those mean phone calls after you miss a couple of payments?

Recognizing the damage that bill collectors can inflict on people in debt and their families precisely when they are most vulnerable,  Congress passed the Fair Debt Collection Practices Act (FDCPA) in 1977. Many consumers are unaware of their rights under this act and bill collectors count on this fact to maximize their intimidation tactics.  Bill collectors will make you feel like a criminal when in fact, because of their dirty tricks and bully tactics, they are the ones breaking the law.…