Mississippi residents with mounting debts often get phone calls from debt collectors. Some of these threatening callers may not be following regulations on debt collection procedures. In fact, debt collectors are sometimes accused of harassing debtors. According to the Fair Debt Collection Practices Act (FDCPA), collectors have limitations as to what they are permitted to do when attempting to collect debts. The same regulations apply to credit card debts, missed payments on mortgages, vehicle loans and medical bills.
The Consumer Financial Protection Bureau (CFPB) states that the FDCPA forbids debt collectors from using unjust methods to collect debts. For example, debt collectors aren’t allowed to use foul language during calls. The FDCPA covers calls made by lawyers and third parties. However, legal regulations do not enforce these rules on the original creditors. Per the official FDCPA guidelines, debt collectors aren’t legally permitted to call debtors prior to 8 a.m. or later than 9 p.m.
Debt collectors cannot call people at their jobs about missed payments if the debtors previously requested them to refrain from calling. Furthermore, debt collectors aren’t allowed to harass debtors. Harassment includes making several phone calls within a 24-hour period. Debt collectors must honor written requests asking that they cease making phone calls and sending texts regarding the payment of debts.
Debt collectors aren’t allowed to divulge confidential information to other people (except for a spouse) about a person’s debts. In addition, a debt collector is not permitted to make a threat of repossession. If a debtor has hired a lawyer, collectors must contact this attorney instead of the debtor. Bankruptcy offers a legal solution to a pressing problem.
Sometimes, even the best intentions to pay back debts involve severe financial repercussions. That’s why an individual facing heavy debts may want to consult with a bankruptcy attorney.
Most people in Mississippi choose hospitals within their insurance networks to avoid higher medical bills. Despite their best efforts, they still might end up paying surprise out-of-network fees. A nationwide study from the Health Care Cost Institute has revealed that patients using in-network hospitals frequently get unexpected charges from out-of-network physicians and laboratories.
Health care consumers have no way to protect themselves from out-of-network services even when they seek care at in-network facilities. Even if patients make inquiries in advance of an admission, the hospital likely has no ability to give a clear answer about the network status of all service providers involved in the care. The increasing complication of insurance contracts and tiered networks creates an opaque environment where consumers cannot have certainty about coverage.
The study found that anesthesiologists were a large source of out-of-network charges from medical professionals. This medical specialty represented 16.5 percent of surprise bills. Independent laboratories, however, took the top spot by producing 22.1 percent of all surprise medical bills.
A medical crisis can inflict financial hardship through both loss of income and high medical bills. A person might fall behind on utility bills and house payments while trying to pay hospital bills. Under these circumstances, debts can pile up quickly. At this point, a legal consultation regarding debt relief could reveal strategies for coping with the problem. An attorney might recommend actions like negotiating a manageable repayment plan. If a court needs to be involved, then an attorney could prepare legal paperwork and strive to protect the client from creditors.
As someone who has decided to file for bankruptcy, you may have done so in an attempt to stop the seemingly constant onslaught of phone calls from debt collectors. Such calls can prove, at best, a nuisance, and you may also have concerns about how it looks to have debt collectors calling you up at your place of business.
By filing for bankruptcy, though, you can put a stop to these persistent phone calls, and this happens because of something called “automatic stay.” Just what is automatic stay? Once you initiate bankruptcy proceedings, the automatic stay takes effect, and your creditors can no longer attempt to collect on certain debts during this timeframe. Just what can bankruptcy’s automatic stay protect you against, in addition to creditor harassment?
Foreclosure
Typically, filing for bankruptcy will, at least temporarily, put a stop to a foreclosure against your house. If you do not stay current on your mortgage payments, though, your creditor may file to have the automatic stay removed, so you still need to keep up with your payments during this time.
Eviction
If you are renting your home and your landlord filed to have you evicted, but he or she is not yet in possession of the eviction judgment from the housing court, bankruptcy’s automatic stay should stop the eviction process. As is the case with mortgage payments, though, your landlord may still be able to evict you if you fail to keep up with your rent.
Wage garnishment
If you are experiencing one of your creditors taking some of your wages at work, bankruptcy’s automatic stay can also put a stop to the garnishment.
While these are some of the things the automatic stay can protect you against, it is important to note that there are certain debts, such as child support obligations and evictions with judgments, that it typically will not cover.
Mississippi residents who are having trouble paying off debts might look to the bankruptcy system for relief. For most individual filers, there are two options, Chapter 7 and Chapter 13. There is a limit on how much debt a filer can have if they want to file bankruptcy under Chapter 13. Specifically, the filer cannot have more than $1,184,200 in secured debts or more than $394,725 in unsecured debts.
Chapter 13 bankruptcy, which is sometimes called wage earner’s bankruptcy, involves the filer paying down debts for a period of between three and five years, pursuant to the terms of a repayment plan approved by the bankruptcy court. There is no maximum income limit for people filing Chapter 13, and it does not matter where the filer’s income comes from. Chapter 13 bankruptcy is a good solution for people who have regular income. Typically, the filer is allowed to keep important assets like a car or house.
Prior to filing, the debtor must go through credit counseling. After the bankruptcy petition and other required documents are filed, the bankruptcy trustee will work with the debtor to create a repayment plan. It is not up to the debtor how long the repayment plan will last. Rather, the period of repayment is determined based on the filer’s level of income.
Those who are considering bankruptcy as a means to relieve financial stress and reduce or eliminate debts might want to speak with a lawyer. Legal counsel with experience practicing bankruptcy law might help a client file the petition to begin the process. If necessary, the lawyer could fight for the client’s best interests during official proceedings.
Many working people living in Mississippi struggle with their finances. Living paycheck to paycheck, they find it difficult to get ahead of crippling debt. If an emergency strikes, such as a family illness or job loss, they may have difficulty affording food, utilities and shelter.
Some employers are aware of the situation and are working to offer financial planning benefits to their workers. These companies have contracted with third-party companies to provide benefits such as financial counseling, student loan repayment options, emergency loans and medical bill advocacy.
In many cases, these services offer real help. If financial counselors determine that a loan is a good idea, they can provide education to employees about the risks and benefits of borrowing. In some cases, these programs also offer paycheck deduction options that can help ensure on-time repayment and lower the risk of credit damage and late repayments.
However, there are limits to how effective financial assistance programs can be. While they may represent a solid alternative to bankruptcy, there are situations in which a person’s debt is simply out of control. Unless the employee receives a significant wage increase or comes into a large amount of cash, he or she is unlikely to ever complete paying off the debt.
In such cases, bankruptcy might be a good option. Both Chapter 7 and Chapter 13 offer ways for financially insolvent individuals to resolve their debts and move forward in reestablishing their finances. Someone considering bankruptcy might benefit from consulting with an experienced attorney who could explain various debt relief options.
