Mississippi Consumer Help Blog

New Debt Relief scam is targeting seniors

Published on: August 13, 2015 | Frank Coxwell

Warning – if you have received a letter from DRA (Debt Relief Advocates LLC), it may be a part of the latest scam that preys on seniors suggesting to them that they owe debts that DRA can settle for less. In most cases – there isn’t even a debt owed at all.

An Ohio case was just settled against them and they are probably sending out these letters to other states as well. The Ohio lawsuit claimed that the consumer was sent an offer to settle a debt by DRA. But what’s interesting is that the allegation made by the consumer states that they did not owe this debt DRA claimed that they did owe.

DRA violated R.C. §1345.02 and committed an unfair or deceptive act or practice in connection with a consumer transaction because DRA offered debt mediation services when DRA knew that Plaintiff did not owe an debt obligation and Plaintiff had an inability to receive a substantial benefit from DRA’s services.

According to this complaint, the consumer was mailed letters offering to renegotiate a non-existent debt along with many phone calls to her home Continue Reading ›

12 Things You Need to Know Now

Published on: June 23, 2015 | Frank Coxwell

Each one of these things can have serious consequences depending on the plan we develop for dealing with your debt, so:

1. Don’t borrow any more money. Don’t take out a second mortgage.
2. Don’t take money out of your retirement, 401k, or IRA.
3. Stop using your credit cards. Don’t use the convenience checks and don’t take cash advances. Don’t do “balance transfers” from one credit card to another.
4. Don’t keep your money in the same bank or credit union where you owe money. Stop all direct deposits into that account and redirect them to a different bank. Continue Reading ›

How can bankruptcy help me right now?

Published on: May 13, 2015 | Frank Coxwell

The protection available to you when you file bankruptcy is immediate and automatic. The moment you file, whether it is a Chapter 7 or a Chapter 13 bankruptcy case, the court places you under it’s protection. Both your income and property are completely sheltered from any creditor seeking to repossess, foreclose, garnish, or seize them. The court refers to this as “The Automatic Stay”. Any and all collection attempts against your income or your property must stop. If a lawsuit has been filed, it must cease. If a judgment has been issued and a subsequent Writ of Garnishment has gone out, it must cease. If the repossession order has gone out, efforts must cease. If the foreclosure date has been set, it must cease. Also, creditors must stop calling you, sending you letters, calling your family, etc. The Automatic Stay is known as “the protection that halts any and all creditor collection activity”. For more reasons why you may not want to wait, click here. Bankruptcy was created to protect you, your income, your family, and Continue Reading ›

If I file bankruptcy, can I keep my tax refund?

Published on: May 13, 2015 | Frank Coxwell

Whether you have already filed your tax return and received your tax refund yet or not, if you are thinking about filing bankruptcy, you may be wondering whether or not you’ll get to keep your tax refund. Under Chapter 7 and Chapter 13 bankruptcy, your tax refunds are protected by Mississippi Law. This means that your income tax refund is protected (exempt). It is a protected asset (up to a certain amount). Mississippi law allows you to keep up to $5,000 in federal tax refunds ($10,000 as a married couple filing jointly), up to $5,000 in Earned Income Tax Credits ($10,000 as a married couple filing jointly), and up to $5,000 in state tax refunds ($10,000 as a married couple filing jointly). So if you’re asking, “If I file bankruptcy, can I keep my tax return?”, as long as you don’t receive a refund above those amounts, filing bankruptcy won’t affect your tax refunds.

What if your federal tax refund is more than the protected amount? If you get more than $5,000 back each year from the IRS, the best thing you can do is adjust your withholding to reduce the amount of taxes you are paying and maximize the amount of money you take home each pay period. With food and fuel prices going up, most of us need the money in our paychecks right now, rather than getting a large sum back at tax time.

Have you seen all your Specialty Credit Reports?

Published on: May 13, 2015 | Frank Coxwell

Most of us know about the 3 main credit report bureaus – Experian, Transunion, and Equifax …but have you seen ALL your credit reports? Did you know that more exist and are referred to as specialty credit reports? There are many other credit reporting agencies that report nationwide in specialty areas of credit. They are all required to make it easy for you to obtain a copy of any file they have compiled on you – or at a minimum provide a toll-free number that you can call and request your copy. Not all of them, however, are required to provide a free report.

What is a nationwide specialty credit reporting company? They collect information on consumers’ medical records or payments, rental or residential history, checking account history, claims made on insurance policies, and/or regarding your employment history. They are just like the 3 main credit bureaus I listed above except that they gather information about you for potential landlords, certain creditors, companies reviewing your information for potential employment, insurance agencies, etc.

The CFPB (Consumer Financial Protection Bureau) has created a document available here that provides the information to you on all of these agencies and has broken them down into the following groups:

National Credit Reporting Companies
Check Screening/Check History
Payday Lending
Auto & Property Insurance History
Alternative or Supplementary Credit Reports
Utilities
Gaming
Rental
Medical
Employment History

A checklist for “Should I file bankruptcy?”

Published on: May 13, 2015 | Frank Coxwell

I have found it helpful to share this checklist with people who call asking me “Should I file bankruptcy?” In a nutshell, if more than two of the following issues apply to you, it is possible that bankruptcy would be an option worth investigating further:

Debt collectors are calling you at home or at work.
You are utilizing payday loans to make ends meet.
Your wages will soon be garnished or are being garnished now.
Your bank account has been frozen.
The majority of what you owe is unsecured debt like credit cards, medical bills, payday loans, etc.
Your facing the threat of foreclose on your home.
The foreclosure process on your home has already started.
Your facing possible repossession of your vehicle.
You have had a vehicle repossessed.
You want to give up your house or vehicle and walk away without owing any money.
Your bill payments are more than 30 days behind.
You have been sued or are being sued over debt.
You have a significant amount of medical debt that will not be covered by insurance.
You have medical insurance but can’t afford to pay your share of the bills.
You owe income taxes that you cannot afford to pay.
Your total debts (other than house & car) are more than you could pay and still live, even over five or more years
You have high student loan deb, cannot defer payment any longer, and the notes are more than you can pay

How does consumer Credit Counseling work?

Published on: January 30, 2015 | Frank Coxwell

How does consumer credit counseling work? And more importantly, is there “a catch”? Consumer credit counseling can work great for someone who is just a little over extended in debt. Consumer credit counseling agencies are the true non-profit agencies you hear about that work with your credit card companies to reduce your payments or interest rates so you can pay the debt off and be done with it. However, this is limited to credit card debt.

How does it work? The agency contacts the credit card companies, which will cooperate to possibly reduce the interest rate. The agency will then tell you the monthly payment that you must send in to pay the debt in full. Your household budget and your ability to pay have nothing to do with the monthly payment amount. You pay that monthly payment to the credit counseling agency and then the agency sends payments to each of your credit card creditors each month. The credit counseling agency will usually receive a fee for this service from the credit card company.

What is the catch? Well, by the time you realize that you are in a financial bind, you are beyond the help a consumer credit counseling agency can offer. The monthly payment you will make to the agency is not much different than the minimum payments you were making to pay the credit cards. If your main issue stems from the lack of cash flow, which is extremely common, then consumer credit counseling doesn’t work.

Consumer Financial Protection Bureau

Published on: January 30, 2015 | Frank Coxwell

The Consumer Financial Protection Bureau (CFPB) is a government organization, which accepts and assists with complaints about the following consumer product or service issues:

Bank accounts or services
Credit cards

What is a bankruptcy discharge?

Published on: January 30, 2015 | Frank Coxwell

I’m sure you are coming across a great deal of unfamiliar terms and phrases while researching the process of filing bankruptcy. This jumble of information may make references to getting a “bankruptcy discharge,” for example. So what is a “bankruptcy discharge”? If your debts are “discharged” through your bankruptcy case, then you are no longer obligated to pay them and your creditors are prohibited from ever making any effort to collect the debt. So receiving a “bankruptcy discharge” is a good thing – it’s what you want to happen – what you want your final result to be.

It’s important to note that if the debt has property that is collateral for the loan, the creditor may still be able to repossess the property if you do not pay. In other words, filing bankruptcy won’t give you a free car. You will either pay for the car or you will surrender it back to the creditor with all responsibility for any difference in amount owed, etc being gone. Any debt of yours that is cosigned or guaranteed by someone else can still be collected from that person (your cosigner or guarantor), but not from you. Your legal obligation to pay has been “discharged”.

Will all debts be discharged? Most of the debts you owe at the time you file your case will be discharged, but certain types of debt cannot be discharged no matter what. These non-dischargeable debts include: income taxes that are less than 3 yrs old, child support, alimony, government fines and restitution, and student loans. Other debts that you may not be able to discharge include debts you may have incurred by fraud or willful or malicious actions.

What can chapter 7 bankruptcy do for me?

Published on: January 30, 2015 | Frank Coxwell

Filing a chapter 7 bankruptcy can eliminate unsecured debts such as credit cards or credit accounts, all medical bills, any payday loans or other types of signature loans, etc. It stops lawsuits, no matter what stage the lawsuit is in. It stops wage garnishments. It stops harassing phone calls and letters from debt collectors. It gives you a new beginning, a true, financial fresh start.

In some instances, it may be advisable to file Chapter 7 bankruptcy to stop repossession, foreclosure, student loan collection efforts, and other types of debt related activity that might normally be handled through a Chapter 13 bankruptcy. It’s a matter of what you need short term and long term. Your attorney will discuss the pros and cons of both types of bankruptcy.

Being free from overwhelming debt is possible for you. Take advantage of the opportunity the law allows to be debt free. The government understands that people have financial problems because they have experienced a job loss, hours cut, a failed business, divorce, illness, severe injury, or other unforeseen financial hardship.