debt collector harassment Archives - Peoria Bankruptcy Lawyer Charles Covey

Bankruptcy Solutions for Wage Garnishment & Bank Levies

October 1, 2021

Both private creditors and government agencies can use bank levies and wage garnishment to collect a debt. Private creditors need to obtain a court judgment to garnish someone's wages --- a government agency such as the IRS, the Department of Education, or family courts will do the same to levy a bank account to recover unpaid taxes, defaulted student loans, or past due child support respectively. How Can Bankruptcy Help? The Automatic Stay If you are already stretched financially, having … [Read more...]

Pushing Back on Debt Collectors

November 13, 2020

Getting behind on bills can make every part of your life feel miserable and is only made worse when debt collectors start calling. While some debt collection agents are understanding, many are downright mean, but it is important to keep a cool head and not to let debt collectors intimidate you. Debt Collection 101 Of course if you have debt, you have a legal obligation to pay it. But, just because you may have made some financial mistakes does not give someone the right to abuse you - it … [Read more...]

Creditors Balk at Suspension of Debt Collection During Pandemic

May 22, 2020

Early demands to freeze the collection of past due debt during the Covid 19 shutdown had debt collectors across the nation scrambling their lobbyists to push back, expressing concerns that the suspension of debt collection activities would "pose an undue burden to the industry's ethnically diverse workforce" and leave debtors "in the dark on how to handle their debt obligations". Many find the industry’s overt cries to protect their diverse workforce ironic considering many minorities suffer … [Read more...]

Tax Exempt Hospitals Under Scrutiny for Aggressive Debt Collection Practices

December 11, 2019

Tax exempt hospitals are required by law to provide charity care to patients who cannot afford their hospital expenses. Furthermore, nonprofit hospitals cannot go after past due balances through extraordinarily aggressive debt collection actions such as suing these patients or seeking the garnishment of their wages. However, according to an investigation recently published by MLK50, a member of ProPublica, that is exactly what one of the largest healthcare systems in the country did when poor … [Read more...]

Debt Collectors ‘Get Around’ Statute of Limitations on Collecting Debt

August 22, 2019

In many states, debt collectors lose the right to sue consumers after a period of anywhere from 3 to 5 years. However, if a consumer makes a payment - regardless of whether they do so intentionally or otherwise - it restarts the clock on debt collection and allows debt collectors to "get around" the statute of limitations on collecting old debt. To illustrate how it can happen, consider someone who falls hopelessly behind on a store credit card. As the years tick by, the consumer may believe … [Read more...]

Zombie Debt Collection Harassment

June 28, 2018

When you are unable to pay a debt, the lender may eventually 'charge off' the debt if their efforts to collect it are unsuccessful. The calm that follows may end the torrent of harassing phone calls and demand for payment letters initially, but there is a strong possibility a debt collection company will buy the debt from the original lender and start the collection process anew. So-called zombie debt collection companies make their living from purchasing bad debt from companies at a fraction … [Read more...]

Debt Collection Beyond Statutes of Limitations | Peoria Illinois Bankruptcy

May 17, 2017

Monday, the U.S. Supreme Court ruled that debt collectors can use bankruptcy proceedings to collect debts that have expired under state statutes of limitations without fear of reprisal under the U.S. Fair Debt Collection Practices Act. The court found that companies will not be held liable when they file claims on past debt, giving creditors the green light to pursue debtors for age-old debt that is not required to be paid back under state law. Without the ability to hold companies … [Read more...]