North Carolina Debt Relief
Are you a North Carolina resident struggling with unsecured debt? You should be aware that North Carolina state law provides for protections from harassment by creditors and debt collectors.You may qualify for a debt reduction program and save thousands. Take advantage of your consumer credit rights today!
Debt negotiation and settlement in North Carolina (NC):
Debt Negotiation is also referred to as debt settlement and debt reduction, is where attorneys negotiate with your creditors and settle the debt for less than the original amount. During this process you make one monthly deposit into a special purpose deposit account that is opened in your name instead of multiple minimum payments to the credit card companies. The attorneys use these funds to settle the debt and in many cases this is the most beneficial form of debt settlement or debt negotiation offered to consumers in North Carolina.
In most instances the attorneys are able to negotiate and settle debts for credit cards, collections, medical bills, and various other debts. To speak with a Debt Consultant please call our toll free number: (800) 590-4523.
Important laws relating to debt relief, debt help, debt settlement, and debt negotiation in North Carolina (NC):
Creditors in North Carolina must follow the Fair Debt Collection Practices Act (FDCPA) with regard to debt collection. The attorneys are familiar with these laws and will work with you to ensure you are not a victim of violations by the original creditors or collection companies. For example before a judgment is entered creditors and collection agents may not communicate with a debtor’s employer without consent from the debtor. North Carolina may also have limits on the interest rates the collection agencies may charge and laws protecting debtor’s wages. With complex laws and rules governing this area of commerce, and violations costing creditors $1000 plus attorney fees, it is not surprising that credit card and collection companies do not want you working with an attorney.
Time may be on your side, the Statute of Limitations:
Once you become delinquent the statute of limitations on that debt begins running. The statute of limitations limits the time a creditor or debt collector has to initiate legal proceedings. Once the statute of limitations has expired, the party collecting the debt has fewer options, however calculating when the statute of limitations can be tricky. Each state has its own set of laws relating to this area of the law and each form of debt has its own applicable statute of limitations. So North Carolina’s statute of limitations with regard to credit card debt may be different from Georgia’s while both states will have separate statutes of limitations with regard to a written contract that a debtor is trying to collect on.
While reviewing your debts the attorneys will look for violations of the statutes of limitations which could be beneficial for you.To schedule a free no cost no obligation analysis with one of our experienced Debt Consultants call toll free: (800) 590-4523.
Is declaring Bankruptcy right for you?
When contemplating debt negotiation and debt settlement or debt consolidation many people will also consider declaring Bankruptcy however before going that route it is important to understand some recent changes in the law. Prior to the 2005 Bankruptcy Act people who found themselves facing a financial hardship and more debt than they could pay off would often file Chapter 7 Bankruptcy which would effectively wipe out their debts and give them a fresh start. For many Chapter 7 Bankruptcy was preferred over Chapter 13 Bankruptcy where the debtor would be set up in a repayment plan determined by the courts.
Under the new laws of Bankruptcy many filers with higher incomes are precluded from filing Chapter 7 Bankruptcy. To establish eligibility for Chapter 7 Bankruptcy debtors must pass a two part test otherwise the debtor must file Chapter 13 Bankruptcy and enter into the repayment plan established by the court. The first part is a comparison of the debtors “current monthly income” against the median household income in the debtors state. For example the median income based on 2005 census figures for a 1 person household is $42,468, if the debtor’s adjusted income is above that they must pass the “Means Test” which essentially determines whether you have enough disposable income after allowed deductions to make payments on a Chapter 13 Bankruptcy plan.
Should the leftover income fall below a certain threshold the debtor is allowed to file Chapter 7 Bankruptcy. These laws and calculations can be complex and a Bankruptcy Lawyer should be consulted with specific questions.Bankruptcy is also viewed as an option of last resort for most because of the negative stigma it carries and as a matter of public record for any and all to see for the rest of the debtor’s life. Chapter 7 Bankruptcy and Chapter 13 Bankruptcy will also appear on your credit report for up to ten years. Small business owners in North Carolina and across the nation must be especially wary of filing for personal Bankruptcy as it may prevent the small business owner from obtaining the necessary financing or small business loans.
Each individual debtor faces a unique set of circumstances and must make the decision they feel is in their best interest and the best interest of their family. When considering debt negotiation and Bankruptcy it is important to think of both the short term and long term effects of each. Over the short term if someone qualifies for a Chapter 7 Bankruptcy they will save money versus debt negotiation however there may be long term repercussions when the debtor seeks credit to buy a home or applies for certain jobs requiring a background check.
Debtors considering Chapter 13 Bankruptcy must consider whether they can afford to pay back all of the unsecured debt in the short term through a Bankruptcy payment plan as well as how their credit will be affected in the years following a Bankruptcy. Additionally because courts will seek to pay back all creditors in full these plans often are extended over a period of 5 years versus a debt negotiation where the attorney will seek the shortest term the debtor can comfortably afford.
North Carolina Debt Collection and Consumer Protection Law:
The North Carolina legislature has apparently not enacted significant supplementary state laws that differ in any substantial way (aside from providing consumers with a private cause of action [the right to sue] to enforce their state law rights) from the federal Fair Debt Collection Practices Act of 1977 (15 USCA § 1692 et seq.).
However, residents are still protected under federal law. Federal Law: Fair Debt Collection Practices Act (FDCPA)The FDCPA is a federal law that provides residents of all states with considerable rights and protections against abusive, unfair and deceptive debt collection practices used by debt collectors. Examples of debt collection practices prohibited by the FDCPA include using profane language, lying and calling a debtor at work if the debt collector knows the employer disapproves. The debt collector must also protect the debtor’s privacy by not disclosing the debt to others such as friends, family members or co-workers.
A debt collector, as defined in the FDCPA, is anyone who regularly collects debts on behalf of an original creditor. Original creditors, such as credit card companies and banks, are not considered debt collectors when they attempt to collect debts owed directly to them. Therefore, original creditors are not covered under the FDCPA.The FDCPA covers only consumer debt, which includes personal, family and household debt, but not business debt or any debt incurred for business purposes. Common types of consumer debt are credit card debt, automobile loans, home loans, utility bills and medical.
What must the debt collector tell you about the debt?
Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe, the name of the creditor to whom you owe the money, and what action to take if you believe you do not owe the money.
May a debt collector continue to contact you if you believe that you DO NOT owe money?
A collector may not contact you if, within 30 days after you are first contacted, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.
What types of debt collection practices are prohibited?
Harassment: Debt Collectors may not harass or abuse you. For example, debt collectors may not:
- Use threats of violence or harm against the person, property, or reputation;
- Publish a list of consumers who refuse to pay their debts (except to a credit bureau);
- Use obscene or profane language;
- Repeatedly use the telephone to annoy someone;
- Telephone people without identifying themselves;
- Advertise your debt.
False Statements: Debt Collectors may not use any false statements when collecting debt. For example, debt collectors may not:
- Falsely imply that they are attorneys or government representatives;
- Falsely imply that you have committed a crime;
- Falsely represent that they operate or work for a credit bureau.
Summary of Illegal Actions:
- A debt collector calls you at work and knows that it is inconvenient or that your employer disapproves or forbids it.
- A debt collector calls you before 8:00 a.m. or after 9:00 p.m. in your time zone.
- A debt collector makes an excessive number of phone calls to annoy or harass you.
- A debt collector knows that an attorney, whose contact information is known or is easy to locate, represents you and the debt collector continues to contact you.
- A debt collector tells a person other than you, your spouse, or your attorney that you owe money. (If you are a minor, the debt collector can tell your parents or guardians about the debt.) Debt collectors can only communicate with other people to obtain contact information about you.
- A debt collector misrepresents the amount, character, or legal status of a debt.
- A debt collector gives others credit information about you that is false, or should be known to be false.
- A debt collector fails to honor your dispute or cease communication rights.
- A debt collector threatens to take your property or garnish your wages when this action would not be legal or the debt collector does not actually intend to do it. Your property cannot be taken and your wages cannot be garnished without a court order (judgment).
- A debt collector uses, or threatens to use, violence or any other illegal means to harm you, your family, your reputation, or your property.
- A debt collector uses profane or obscene language when communicating with you.
- A debt collector threatens you with criminal prosecution or implies that you have committed a crime. Debt and credit issues are matters of civil law, not criminal law.
- A debt collector tricks you into accepting charges for collect calls, telegrams, a C.O.D., etc.
- A debt collector cashes, or threatens to cash, a post-dated check before the date written on the check, if the check is post-dated by five days or more.
- A debt collector does not give three to 10 days advance notice before cashing a check that is post-dated by five days or more.
- A debt collector claims to be an attorney or sends a letter made to look like it is from an attorney (unless the debt collector really is an attorney).
- A debt collector sends a letter that is made to look like a government or court document when it isn't.
- A debt collector sends a government or court document that is not recognizable as such.
- A debt collector threatens any action against you that is not legally feasible or that the debt collector does not intend to take.
What can you do if believe that a debt collector violated the law?You may have the right to sue a collector in a court of law. If you win, you may recover money for the damages you suffered and, in certain jurisdictions, you may recover statutory damages. In addition, in certain jurisdictions, court costs and attorney's fees may also be recovered.
Where can you report a debt collector for an alleged violation?Report any problems you have with a debt collector to the office of your state attorney general and the Federal Trade Commission. Many states have their own debt collection laws and your state attorney general can help you determine your rights. In addition, you may contact a local attorney to determine your legal options regarding an alleged FDCPA violation.
How can I file a complaint against a debt collection agency?
If you believe, after reading this information and notifying the debt collector in writing as indicated, that your rights have been violated by a debt collector, you may file a complaint with the Governor’s Office of Consumer Affairs. If the information you provide indicates that the debt collector has violated the law, we may contact the collection agency and try to find a solution to your problem. However, some types of complaints (such as telephone threats or the use of abusive language by collectors) are very difficult to prove. Please also remember that, even if the debt collector violates the FDCPA, that does not erase any legitimate debt you owe. Click on the following link to learn more about our debt validation service .You should also file a complaint with the FTC, the federal agency that enforces the Fair Debt Collection Practices Act.
You can contact the FTC online at www.ftc.gov, by phone at 877-FTC-HELP, or by mail at:
Consumer Response Center
Federal Trade Commission
Washington, DC 20580-0001
Courthouse Info:
U. S. Bankruptcy Court
Charles Jonas Federal Building
401 West Trade St., Room 111
Charlotte, NC 28202
Phone: (704) 350-7500
U. S. Bankruptcy Court
100 Otis Street, Room 112
Asheville, NC 28801-2611
Phone: (828) 771-7300