Federal law spells out in detail what actions debt collectors are permitted to take to collect on debts, and also what debt collection actions are illegal.
For example, debt collectors may only call you between the hours of 8:00 a.m. and 9:00 p.m. Calls outside this time period are illegal.
Similarly, Debt collectors must stop calling you at work if you inform them (in writing or over the phone) that you are not allowed to get calls at work. It's always a good idea to keep a copy of all correspondence and maintain a log of all phone calls to them.
There are many other rights you have to keep debt collectors from harassing you. More details will be forthcoming in future posts here.
Thursday, January 28, 2016
Monday, January 18, 2016
BANKRUPTCY FILING CANNOT BE USED AGAINST A PERSON APPLYING FOR A STUDENT LOAN
One of the most frequent questions clients ask me is if they file for bankruptcy, will they have a problem obtaining a student loan. The answer is, neither a government OR private student loan lender may deny somebody a loan simply because they have file for bankruptcy protection in the past. This protection also applies grants as well as loans.
Congress enacted legislation in 1994 to put this protection into law.
Here it is, in black and white:
Congress enacted legislation in 1994 to put this protection into law.
Here it is, in black and white:
11 U.S.C. 525 (c)(1) - Protection against discriminatory treatment
(c)(1) A governmental unit that operates a student grant or loan program and a person engaged in a business that includes the making of loans guaranteed or insured under a student loan program may not deny a student grant, loan, loan guarantee, or loan insurance to a person that is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, or another person with whom the debtor or bankrupt has been associated, because the debtor or bankrupt is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of a case under this title or during the pendency of the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.
Hopefully this information will provide some comfort about paying for school after having filed for bankruptcy.
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Sunday, January 17, 2016
DISCRIMINATION AGAINST A BANKRUPTCY FILER IS ILLEGAL
Many clients have the understandable concern that if they seek help and protection from their bills, that they will face negative consequences.
The U.S. Bankruptcy Code actually protects people who have filed for bankruptcy from discrimination. Section 525(a) of the Code provides:
"a governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title or a bankrupt or a debtor under the Bankruptcy Act, or another person with whom such bankrupt or debtor has been associated, solely because such bankrupt or debtor is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of the case under this title, or during the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act. "
This section of the Code governs discrimination by governmental units (Federal, state, local government, for example, as well as other governmental agencies, authorities, boards, etc.)
Therefore, a person who has filed for bankruptcy cannot, for example, be denied a job with the government because of a bankruptcy filing, denied a drivers license, the right to live in public housing, and many other services regulated by various levels of government.
Section 525(b) covers private employers, although, you should take note that it can be challenging to prove in court what the motive of a private employer really was.
Many people have been unaware of the protections built into Federal law to make the bankruptcy filing a true fresh start by making illegal various forms of discrimination against somebody who exercised their legal right to be free from debts.
The U.S. Bankruptcy Code actually protects people who have filed for bankruptcy from discrimination. Section 525(a) of the Code provides:
"a governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title or a bankrupt or a debtor under the Bankruptcy Act, or another person with whom such bankrupt or debtor has been associated, solely because such bankrupt or debtor is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of the case under this title, or during the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act. "
This section of the Code governs discrimination by governmental units (Federal, state, local government, for example, as well as other governmental agencies, authorities, boards, etc.)
Therefore, a person who has filed for bankruptcy cannot, for example, be denied a job with the government because of a bankruptcy filing, denied a drivers license, the right to live in public housing, and many other services regulated by various levels of government.
Section 525(b) covers private employers, although, you should take note that it can be challenging to prove in court what the motive of a private employer really was.
Many people have been unaware of the protections built into Federal law to make the bankruptcy filing a true fresh start by making illegal various forms of discrimination against somebody who exercised their legal right to be free from debts.
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