There Are Alternatives To Bankruptcy
If you have fallen into a bankruptcy situation, do not give up on your hopes there are some alternatives to bankruptcy. There are several things you may want to know and some action plans you may wish to follow.
There are some ways to get assistance when it comes down to bankruptcy and most of them can cost quite a lot. There are lawyers who will guide you through the fine print and the court forms, but expect to pay hundreds of dollars for their advice. We can advice you to consider cheaper assistance solutions, which do not rip your pocket when you are at your weakest financial position. You will see our recommendation below.
How To Avoid Bankruptcy
The following is a list of what a borrower can do to avoid bankruptcy:
- Renegotiating with the creditor the terms, payment amounts and due dates of the payments on the balance owed.
- Refinancing the debt into a whole new loan.
- Credit counseling.
- If the bill is erroneous or not accurate, disputing the bill.
- Filing a complaint against the creditor.
If you do decide that the bills you have received are inaccurate or erroneous, be prepared with any documentation, correspondence, days, dates, times of all phone calls, names of the parties you spoke to and the nature of the calls.
Federal Acts To Fight Bankruptcy
Keep in mind that the FDCPA provides severe penalties to creditors who violate the following regulations (some of them have been in existence for many years):
- FIRREA – Financial Institutions Reform, Recovery And Enforcement Act
- ECOA – Equal Credit Opportunity Act – provides some standard credit report codes that each of the big three credit reporting bureaus use.
- FDCPA – Fair Debt Collection Practices Act – Has strict guidelines about what debt collectors can and cannot do.
- Privacy Act of 1974 – This act protects certain federal government records pertaining to individuals. The Privacy Act prohibits the disclosure of a record about an individual from a system of records absent the written consent of the individual.
- RICO Act – Racketeer Influenced and Corrupt Organizations Act.
- Dodd-Frank Act of 2010 – Dodd–Frank Wall Street Reform and Consumer Protection Act.
- Regulation Z (mortgages only) – The purpose of this regulation is to promote the informed use of consumer credit by requiring disclosures about its terms and cost.
- Regulation X (all loans) – HUD’s Reg X Real Estate Settlement Procedures Act.
- Graham, Bliley, Leach Act of 1999 – The Gramm-Leach-Bliley Act requires financial institutions to explain their information-sharing practices to their customers and to safeguard sensitive data.
- Patriot Act of 2001 – ‘Know Your Customer’ describes the means by which the identity, background and other aspects of potential customers can be checked by financial institutions.
As one can plainly see, there are many acts and regulations in place to prevent fraud and misrepresentation on the part of the creditor, BUT, I caution the reader that these acts apply to you as well.
We can recommend you a ‘Bankruptcy Software’ which can guide you through all the process with real time online assistance, and all the forms you will need, while facing court and the creditors lawyers.
These rules were put into place to protect he borrower from the many mortgage and foreclosure scams that are out there, especially on the internet and as a result of the events of 9-11, but to protect the creditors from having their solvency threatened from terrorists and scam artists.
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