There are hundreds of so-called debt counselors, and most of them are broke. Yep, they got no more money than you. Can they be of use to you in your quest to get out from under the debt collector’s boot? Yes, and here is how.
Debt collection companies use our taxpayer-funded court and prison systems to collect their private debts. It doesn’t matter to them how much it costs because they are not paying for it and they are just eventually getting paid from it. If they find a friendly judge like the one above then so much the better.
First of all you have to admit that you did fail, if you never admit it, you can never move forward. You can not just live in denial thinking that this could never happen to you. You have to find some other way to pick yourself up and bounce back. Find something else that you are passionate about and start learning those new skills.
In California they have not gone there yet as far as I have seen. Collections are still a responsibility of the creditor once a judgment for the debt has been issued by the court. We in California are thus luckier than many other states. But creditors can demand that debtors attend a “debtor’s exam” and the creditors can have a court issue the order. Failure to attend one of these can result in an arrest warrant being issued and can result in a debtor being put in jail. So be careful if a debtor’s exam is ordered if you have unpaid debts in California. It can possibly be used by creditors as a back door way of getting you in jail for purely private debts.
When you are sued, you have a set time frame in which to file a written response with the debt collector and the court, called the “answer”. Depending on local rules, you have between 20 and 30 days to do this.
Credit is the opposite of money. Money, which is legal tender for the payment of debts, is defined by Congress in 31 USCA Sec 392. This section basically describes all coins and currency issued by the United States Government as legal tender for all debts, public and private. For purposes of this article, we will call money either coins or currency. Also, no effort will be made to argue that Federal Reserve notes are unconstitutional; that is beyond the scope of this article.
When you are first contacted, the representative has to advise you that s/he is attempting to collect a debt. You are entitled to the name of the creditor, the amount of the debt, and how much is being claimed is outstanding. If you request it, the agency has to provide you with written verification of the debt. You must request this information within 30 days of the company’s first contact with you. You can notify the agency in writing that you do not wish to be contacted by the company anymore and all contact with you has to cease. However, the company will either sue you, report you to the credit bureau, or pass the debt on to another agency. You should make a good faith effort to resolve the matter.