Archive for January 2012

New Jersey Consumers Should Know That Lawyers Can Be Considered Debt Collectors Under the Fair Debt Collection Practices Act.

A little known fact is that lawyers are considered debt collectors under the Fair Debt Collection Practices Act (FDCPA).  The Federal Trade Commission has published a very helpful consumer guide.

It is quite interesting that when a consumer protection lawyer points out or sues a collection lawyer for violating federal consumer protection laws, the collection attorney always seems so shocked and offended.

Collection lawyers know the law.  They should have office procedures which would cost their office little to nothing to have safeguards in place so they do not violate the law.  However, based on experience it appears most do not.  If they did then there would be far fewer “mistakes.”   Lawyers take an oath when they are sworn to uphold the law.  Perhaps they should be reminded of their oath.

*****Please note that not all debt collectors and/or collection lawyers violate the law.  There are good and bad in every group.*****  















Are Debt Collectors In New Jersey Following The Law After A Debtor Files For Bankruptcy?

When a debtor files for bankruptcy an invisible shield comes down around them. This shield is referred to in the law as the automatic stay, pursuant to 11 U.S.C.  s 362.   The automatic stay protects the debtor from creditors during the pendency of his bankruptcy case.  The purpose of the automatic stay is to give the debtor some breathing room and time to reorganize his affairs.

Once the bankruptcy case is completed the debtor receives a discharge and pursuant to 11 U.S.C. s 524 the debtor’s creditors are prohibited from taking any action against him on a debt that is discharged.

The fact is that creditors, knowingly and purposely violate both the automatic stay and the discharge provisions.  Judges do not realize the extent to which the creditors violate the law on a regular basis.  If someone owes a debt, there is nothing wrong with trying to collect on the debt as long as it is done within the confines of the law.

If a creditor contacts after you after filing for bankruptcy please be sure to                                                                                                                consult with your attorney.  Both the Bankruptcy Code and Fair Debt Collection Practices Act (FDCPA) are laws, that when working properly, help protect the consumer.

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