Mississippi Consumer Help Blog

What is a Reaffirmation Agreement?

Published on: September 29, 2014 | Frank Coxwell

In chapter 7 bankruptcy cases you may be asked to sign a reaffirmation agreement for a loan, secured by collateral, that you wish to keep such as a vehicle, furniture, etc. A reaffirmation agreement is an agreement that says you want to keep the vehicle or the furniture and you will continue to pay the debt after the bankruptcy is over. The creditor must agree to the reaffirmation, but in most cases they will agree because they want you to keep the property and continue to pay them. They don’t want the property back.

A valid reaffirmation agreement places a legal obligation over you to continue to pay a debt that would have been wiped out in the bankruptcy. If you become behind on payments after the bankruptcy, the creditor can repossess or foreclose on that property and sue you for the deficiency balance on the loan.

The Bankruptcy Code has many requirements that must be met for reaffirmation agreements to be valid. You should think long and hard about whether to reaffirm a debt and discuss options with your bankruptcy attorney, as this limits the benefits of your bankruptcy discharge.

Did you cosign for a student loan?

Published on: September 28, 2014 | Frank Coxwell

Did you cosign for a student loan for your child or spouse? Co-signers and the student borrowers both owe the full amount of the loan. The primary borrower might pay the loan now, but if they stop paying, those debt collectors will be coming after the the co-signer for the loan. ***It’s important to keep in mind that the student borrower could file a Chapter 13 and protect you as the co-signer should they get into a situation where they cannot make their payments or, if necessary, you could file a Chapter 13 to protect yourself.*** But back to our discussion…

Co-signers can be released from student loans. It’s tricky, but in many cases there is a way out for you. The facts depend on whether it is a federal loan or a private loan and the terms of the loan.

For instance, if the primary borrower for a federal student loan dies, then the loan can be discharged and the co-signer is released. It works the same way if the primary borrower becomes permanently disabled.

How can you get student loan debt information?

Published on: September 27, 2014 | Frank Coxwell

Student loans are not usually wiped out in bankruptcy like other debts (although bankruptcy can provide assistance). But the court still requires that you list your student loan debt in the bankruptcy, since this is a debt that you owe. This can be difficult, especially while they were in forbearance, if you have not kept track of your loans

For federal student loans, you can locate all of your lenders and student loan debt on The Department of Education website. It’s called the “National Student Loan Data System”. Go to www.nslds.ed.gov and click the “Financial Aid Review” button, and just follow the instructions. This will give you a print out of all your student lenders and their contact information.

For private student loans, you can’t go to a single website that has information about all of your private student loans. However, private student lenders may be reporting your loans to the credit bureaus and you can locate their names by requesting a free credit report at www.annualcreditreport.com.

Did you co-sign a Loan?

Published on: September 26, 2014 | Frank Coxwell

Did you co-sign for your child’s car loan? Are you a co-signer on a loan for your friend? Have you co-signed for a loan for another family member? If so then you owe the loan the same as the primary borrower does. It does not matter who has their name listed first or second on the papers. If you signed the contract or the note then you are a co-signer and owe the full amount of the loan. The primary borrower may be paying right now, but if something were to happen to stop payments, debt collectors will be hot on your trail for the balance.

Finance companies and banks do not release co-signers from loans. They demand a co-signer so they will have someone to go after if the first borrower stops paying. They knew up front that the first borrower was at high risk to stop paying and they wanted you to be there so they could go after you for part of the debt, half of the debt, or all the debt. They will go after whomever is the easiest to collect from. So think long and hard before you become the co-signer of a debt for someone – and if you do – make sure you are willing and able to pay the whole debt if something happens.

What if I get served with Court papers?

Published on: September 25, 2014 | Frank Coxwell

If you get served with court papers, you are being sued by someone (person or business entity). For the sake of this discussion, let’s say you are being sued by a creditor over a debt you did not pay (or they say you did not pay). If you don’t show up for court, the debt collector wins, right or wrong – they win and get a judgment is set against you. With a judgment in place, the debt collector has the power to garnish your wages or seize your bank account, or any bank account with your name on it.

They can sue you and garnish your wages even if they have already repossessed their collateral (such as a car, furniture, guns, etc). They can sue you and garnish your wages even if they have foreclosed on your home if they say that there is a delinquency (the sale of the home, car, furniture, guns, etc) did not cover the entire balance you owed the creditor.

Don’t avoid being served. The 14th Amendment to the US Constitution mandates “due process” when someone is asserting a claim against a person’s “life, liberty or property.” State Constitutions have also adopted this right and passed what is called “service of process” laws that spell out how a legal document must be delivered to a defendant in a lawsuit. Don’t make the mistake of thinking that avoiding being served will avoid the consequences of being sued. It is just not true. Avoiding being served does not make the case disappear and avoiding being served could make things worse.

Don’t do this before filing bankruptcy.

Published on: September 25, 2014 | Frank Coxwell

Stop – if you are thinking of filing bankruptcy – do not do any of these transactions until you have spoken with me. Waiting a few days will not matter. “Better to be safe than sorry.” There is a right way to do things before you file bankruptcy, but there are also a whole lot of wrong ways to do things. Some actions could get you into a lot of trouble. Put it on hold and let me give you the information you need to understand your options.

Don’t pay back money you owe to family members.
Don’t pay your friends back money you owe them.

Yes, You Can Stop Debt Collectors From Calling

Published on: September 23, 2014 | Frank Coxwell

Yes, you can stop debt collectors from calling you. Federal law, the Fair Debt Collection Practices Act, (“FDCPA”) requires debt collectors to stop calling if you send them a written request. Once your written notice for telephone calls to stop has been received by a debt collector, financial penalties of $500 to $1,500 can be awarded per violation.

What You Need To Do To Stop Debt Collection Calls:

1. Write a letter setting out your name and address.

What If a Debt Collector is Abusive?

Published on: September 22, 2014 | Frank Coxwell

The Fair Debt Collection Practices Act (FDCPA) prohibits abusive and deceptive collection tactics. This means that the debt collectors cannot insult you, threaten you, trick you, lie to you, or harass you with phone calls at all hours. This law applies only to third-party debt collectors and does not apply to a creditor collecting their own debt.
If you feel you a debt collector is being abusive, you can sue them under the FDCPA. Mississippi has zero consumer protection laws and there is no regulation of debt collectors. Creditors collecting their own debts are free to abuse you in Mississippi. You can complain to the state attorney general’s office if it makes you feel better, but don’t expect anything to come out of it. But you can stop the calls – click here to find out how. And you have options on how to deal with your debt overall – I can help.

Are you looking for the cheapest bankruptcy lawyer?

Published on: September 19, 2014 | Frank Coxwell

Cheap Lawyers are everywhere, but you may not be able to afford them.

You can see a lot of lawyers bragging about being the cheapest. Search on the web and you will see ads for “Cheap Bankruptcy Attorney,” “Low Fee Bankruptcy.”

We all know that quality and cheap don’t go together. If we buy cheap we know it will cost us more in the long run. You get what you pay for. This is no surprise. We expect it and make buying decisions knowing what will happen. When it comes to hiring a lawyer, hiring the cheapest is not the way to go. The risks are just too great.

What is a wage garnishment?

Published on: September 11, 2014 | Frank Coxwell

A garnishment is an order from a court that is sent to your employer requiring them to withhold certain amount of money from your paycheck. This money is then sent to the creditor. Mississippi law limits the amount of money that your creditors can take from your wages to 25%. Most creditors are limited to the 25%, but some creditors like the IRS, State Taxes and Child Support are allowed to get more.

What Is The Process For Getting A Garnishment?

1. A creditor must file a lawsuit against you and serve you with a summons telling you to come to court.