Business Bankruptcy in Scottsdale Archives - Page 9 of 9

“Debt buying” affects millions of Americans and takes place when large companies buy and sell billions of dollars of debt. Credit card companies, hospitals, personal loan companies, banks and other lenders regularly sell and resell debt – and this may include debt that you owe.

For example, if you open a Visa account with a local bank and eventually stop repaying on your loan, the credit card company terminates your account and starts sending collection letters. The credit card company may decide to sell your debt for cash. Depending on how delinquent the debt is, a debt buyer may pay only 4 or 5 cents on the dollar. Your debt will then be packaged along with other similar debt and sold in bulk to a debt buyer at this discounted rate. The debt buyer will then attempt to collect the debt by calling you or the buyer may retain a lawyer and sue you.

Debt buying is legitimate as long as the debt buyer follows the rules. Debt buyers also realize that most consumers do not know the rules so the debt buyers often take advantage of a consumer’s limited knowledge.

Some debt buyers practice illegal tactics including:

Repeated collection calls that violate the Fair Debt Collection Practices Act ban on harassment and after hours calls
Misleading consumer into consenting to autodialed calls
Failure to respond to consumer disputes of debt
Farming debt to law firms for litigation without appropriate documentation
Threatening consumers with lawsuits for debts where the statute of limitations has run
Collecting on debt where the debt buyer has no documentation

The Consumer Financial Protection Bureau is starting to go after debt buyers who pursue illegal practices. For example, the CFPB recently imposed a $79 million penalty against to large debt buyers – Encore Capital Group and Portfolio Recovery Associates.

The bankruptcy attorneys at Canterbury Law Group are uniquely qualified to represent you in your debt related litigation. If you’re experiencing actions from debt buyers that may be illegal, call us today to schedule your consultation. 480-744-7711

Canterbury Law Group is uniquely qualified to represent debtors, creditors, trustees and committees in both personal and commercial bankruptcies. The range of services we provide depends on an individual’s or a company’s unique situation but may include business bankruptcy, Chapter 7, adversary proceedings, restructuring, Chapter 11, creditor representation, Chapter 5 claims and Chapter 13.

If you’re debt is overwhelming your life, bankruptcy may be the right choice for you. However, if you’d prefer working towards eliminating some of your debt, we can also help. And, if you’ve already filed bankruptcy, the attorneys at Canterbury Law Group in Scottsdale want to make sure you stay on track and have a flourishing financial future.

The path to becoming debt-free can be a difficult and arduous one. But following these basic steps will help you and your finances.

Create a financial strategy. If one of your financial goals for the year is to get a better handle on debt, put together a debt payoff strategy that complements your budget and won’t overextend you financially. Keep track of future financial needs and contribute to a savings plan.
Pay off the most expensive debt first. Look at the interest rates of all of the credit cards you use to make purchases and sort them from highest to lowest. By paying off the balance with the highest interest first, you increase your payment on the credit card with the highest annual percentage rate while continuing to make the minimum payment on the rest of your credit cards.
Lower your interest rate. You can often lower your credit card interest rates by doing a balance transfer. Shop around and try to get the lowest interest rate for the longest duration (preferably until the debt is paid off completely).
Eliminate new debt. As you start to pay down your debt, stop using credit cards until you have your finances under control.
Pay more than the minimum. Break the habit of paying only the minimum required each month on your credit card statement. Paying the minimum – usually 2 to 3 percent of the outstanding balance – only prolongs a debt payoff strategy.

Our bankruptcy legal team is ready to represent you in your Scottsdale business bankruptcy case. Call us today to schedule your consultation. 480-744-7711.

Illegal Practices Commonly Associated with Debt Buying

5 Steps to Becoming Debt Free