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Frequently Asked Questions about Debtor-Creditor Law
Q: Are there limits on what debt collectors or collection agencies can do when they attempt to collect delinquent debts?
A: Yes.The main federal law regulating debt collectors is the Fair Debt Collection Practices Act (FDCPA), first passed in 1977. Congress was concerned about ongoing abusive debt-collection practices that negatively impacted the lives of consumer debtors both personally and financially. Congress also wanted to level the playing field between honest and upright debt collectors and those using deceptive collection practices. Your state laws also may provide additional regulation of debt collection.
Q: What are the main provisions of the FDCPA?
A: The FDCPA forbids debt collectors, both attorneys and nonattorneys, from using certain questionable methods when attempting to collect consumer debts of a personal or family nature. Basically, debt collectors may not use unfair practices, harassment or false statements.
Americans-both individuals and businesses-owe record amounts of money. In recent years, interest rates have been set at their lowest levels in nearly fifty years, and offers of "0% interest" on purchases have encouraged borrowing and buying on credit. If you are being harassed by creditors, contact us today to discuss your rights and how to get out of debt.
The Bankruptcy and Debt Relief Law Firm
Debtor - Creditor Bankruptcy Information
The debt relief lawyers at Ammerman & Goldberg are committed to helping people struggling to pay their monthly bills. We can help people determine whether a Chapter 7 or Chapter 13 bankruptcy is appropriate for their financial circumstances. The stress associated with financial problems can have a detrimental effect on individuals and families. Our debt relief attorneys are committed to helping people secure their financial future.
Our debt relief lawyers represent clients throughout the District of Columbia, Maryland, and Northern Virginia.
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Montgomery County
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Eastern District of Virginia
Alexandria (City)
Fairfax County
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Washington, DC
District of Columbia
For more information about bankruptcy, please visit our other practice centers: Bankruptcy General, Bankruptcy Chapter 7, and Bankruptcy Chapter 13.
If you would like more information on filing a Chapter 7 or Chapter 13 bankruptcy, please fill out our Free Bankruptcy Evaluation Form or contact us by phone at any of our offices for a free telephone consultation with one of our skilled bankruptcy lawyers.
Our bankruptcy law practice represents clients throughout the District of Columbia, Maryland, and Virginia, including Silver Spring, Bethesda, Rockville, Landover, Greenbelt, Bowie, Upper Marlboro, Arlington, Alexandria, Falls Church, Vienna, Fairfax, and Washington D.C. including Prince George's and Montgomery counties.
Debtor-Creditor Law - An Overview
Debtor-creditor law involves the legal interactions between those parties that owe money and the parties to which the money is owed. Often an aspect of everyday life with little involvement by courts and lawyers, when debtor-creditor situations become more complicated, the legal entanglements and implications grow. That is when a competent and experienced debtor-creditor lawyer becomes an essential ally in reclaiming financial security, whether you are a debtor or a creditor. If you have debt-related legal questions, call one today.
Creditors' Legal Remedies to Help Collect Debts
When a debtor fails to pay a debt, the creditor or the person or business to which the debt is owed, has several available remedies to help collect the money. These methods include nonjudicial self-help remedies and remedies that involve the courts. Self-help remedies include simply contacting the debtor directly and demanding payment. If informal attempts fail, the creditor may transfer the debtor's account to a debt-collection business, usually called a collection agency.
Nonjudicial Creditors' Remedies
An attorney with experience in debtor-creditor law can advise both creditors and debtors about their rights and remedies with respect to overdue debts and help them maintain their financial integrity. When a debtor fails to pay his or her debts in a timely fashion, the person or business to which the debt is owed has several available remedies to help collect the money. Although there are formal creditors' remedies that involve the courts, some methods do not require court involvement and are often referred to as self-help remedies.
Judicial Creditors' Remedies
Although more informal methods of debt collection are often effective, when negotiation and other nonjudicial means of collection are unsuccessful, a creditor may have to resort to assistance from the court system to collect a delinquent debt. If you are a creditor facing tough debt collection or if you are a debtor on the receiving end of such activity, a skilled debtor-creditor law attorney can be of tremendous assistance.
Debtor Options Short of Bankruptcy
Before making the decision to file for bankruptcy, a debtor should thoroughly consider other possible options. After all, bankruptcy can narrow future options by negatively influencing credit ratings and employment opportunities. Sometimes a viable alternative for handling problematic debt can be accomplished through informal negotiation or contractual agreement. If you are struggling with crushing debt, a debtor-creditor attorney can explain the range of legal remedies.
Fair Debt Collection Practices Act
Collecting debts can be a time consuming, complicated operation for many businesses, so to help them work with delinquent debtors in the collection process, creditors often contract with debt collectors or attorneys with knowledge of collection law and procedure. A person who gets a letter or a telephone call from a collection agency or attorney's office about a bill or debt may feel powerless. It may seem as though there is nothing that can be done to protect a person from those who are trying to collect money.
Debtor/Creditor Resource Links
The Art of Getting Paid: A Few Secrets from a Creditors’ Rights Expert
Tips for creditors from the New Mexico Business Journal.
Credit Cards How-To Guide
The Bankrate.com credit card center is a consumer guide to managing credit card debt.
Federal Trade Commission
Website for the Federal Trade Commission (FTC), the federal agency overseeing consumer protection issues.
Fair Debt Collection
This Federal Trade Commission brochure explains the Fair Debt Collection Practices Act and how it applies to businesses and consumers.
Vehicle Repossession
This FTC page offers consumer information about car repossessions.
