May 22, 2012
Debt Collector Sued by Arkansas AG Wins Appeal
A judgment that Attorney General Dustin McDaniel won for the state of Arkansas against a debt collector was overturned today by the Arkansas Supreme Court.
The high court reversed and dismissed the judgment against Jack H. Boyajian, who was ordered by a Pulaski County circuit judge last year to pay a $194,000 civil penalty for 776 violations of the Arkansas Deceptive Trade Practices Act.
McDaniel said today in a written statement, “While I respect the Court’s decision, I am deeply troubled by its far-reaching effect on Arkansas consumers and the likely harm that will result.”
Texas Debt Settlement Attorney
Weston & Associates is a Texas law firm that assists clients in settling debts, defending lawsuits, and filing for Bankruptcy as a last resort.
If you are in Texas and in default on credit cards then our law firm may be able to help you. We can assess your situation and decide which option is best for you.
Law Firm vs. Debt Settlement Company
Unfortunately many consumers fall victim to hiring a non-attorney debt settlement company to settle their debts that they have defaulted on. Most of these companies do not even have a physical address and if they do, they are located outside of Texas.
Often times you will pay these companies only to find out that the company you were paying has gone out of business or was shut down by their local attorney general’s office.
A better option is to hire an attorney to settle your debts.
What Happens to Debts in Texas?
- Consumer stops paying - Four year statute of limitations to file a lawsuit starts - Original creditor calls to collect -Debt is charged off after 180 days of non payment |
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- Debt is sent to a collection agency - Debt is not sold to the agency - Debt is still collectable despite charge off - Agency gets a percentage of whatever they collect - Agency must comply with the FDCPA (Fair Debt Collection Practices Act) |
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If they harass |
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| Send a Cease and Desist Letter | Contact Federal Trade | Document All Calls | |||
Debt eventually sent back to original creditor or sent to another collection agency |
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Depending on whom the original creditor is they will likely file a lawsuit or sell the debt to a debt purchaser after a number of months or |
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Lawsuit filed by original creditor or debt purchaser within 4 years of last payment |
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-Judgment likely entered for debt plus attorneys fees - Bank Accounts can be garnished (not wages) -Certain property can be taken from you and sold at auction -Judgment clouds title on your homestead -Judgment may prevent you from ever getting a home loan -Public record on credit report for 10 years -Judgment continues to increase in amount |
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| AVOID THIS SITUATION!! HIRE AN ATTORNEY BEFORE THERE IS A JUDGMENT!! | |||||
What is Debt Settlement?
If you hire our law firm for debt settlement, we negotiate with your creditors and try to settle the debts one at a time and you keep control of your money. The creditors will not be allowed to call or otherwise harass you if we represent you and if you are ever called by a creditor you simply notify us and we contact the creditor and instruct them to cease communicating with you. Many creditors file lawsuits and if you have a law firm on retainer you will be one step ahead of the creditor.
Benefits of Hiring Our Law Firm to Settle Debt
- Collection Lawsuit Representation
- Written Settlements
- Stop the Collection Calls
1. Collection Lawsuit Representation
Most debt settlement companies specifically disclaim any responsibility for defending you in lawsuits and they usually make it clear that they are not attorneys. Our firm has defended over 1000 collection lawsuits so we are prepared to defend you in any lawsuits. Once you are served with the lawsuit or receive other notice, you will need to contact us immediately. If no answer is filed to the lawsuit, a default judgment will be entered.
If you are in default on a credit card in Texas there is a good chance you will eventually be sued. Credit card companies and debt buyers have up to 4 years to sue you from the date of default or last payment.
If a debt has been “charged off” on your credit report, it does not necessarily mean that you will not be sued on that debt. See definition of charge off.
We defend hundreds of collection lawsuits each year in Texas. For more information on our experience defending collection lawsuits please visit our website dedicated solely to collection lawsuits: www.texascreditcardlawsuit.com
2. Written Settlements
It is dangerous to try to settle debts directly with your creditors because they may not give you anything in writing confirming the settlement. Some creditors will promise to send you written confirmations after payment but will not do so.
If you enter into a debt settlement plan with our law firm we will ensure that all settlements are confirmed in writing.
3. Stop the Collection Calls
After you retain our law firm, we will notify your creditors that you have entered into a debt settlement program and demand that they cease communication with you pursuant to the Federal Fair Debt Collection Practices Act (FDCPA).
Often this demand holds more water coming from a law firm and not a debt settlement company.
Creditors who violate the FDCPA could potentially be sued. Our law firm has sued debt collectors who cross the line with collections.
For more information on our experience in suing debt collectors and your rights under the FDCPA please visit our website: www.debtcalls.com
Is Debt Settlement Right For Me?
If any of the following apply, debt settlement may be right for you.
- You don’t qualify for bankruptcy.
- You don’t want to file for bankruptcy.
- Your credit cards are in default.
- You have some disposable income
1.You don’t qualify for Bankruptcy
In 2005 the Bankruptcy rules changed drastically. There is now an income test called the “means test”. If your income is above the median household income, you may not qualify for Bankruptcy. If you make too much money for Bankruptcy, a good alternative is to settle your debts outside of Bankruptcy. Below are the median household income limits for Texas as up March 2011.
$38,294 Household of 1
$55,178 Household of 2
$56,445 Household of 3
$65,477 Household of 4
(Add $7500 for each person when family exceeds 4)
2.You don’t want to file for Bankruptcy
Even if you qualify, many people do not want to file for Bankruptcy unless it is the absolute last resort. A good alternative is debt settlement. The benefit of entering into a debt settlement plan with our firm is that we are also a Bankruptcy law firm and can assist you with Bankruptcy services if necessary.
3.Your credit cards are in default
If you are in default of your credit cards, your credit score has taken a major hit and the collectors are likely calling daily. There is also a good chance you have been sued or will be sued. Now is a good time to enter into a debt settlement plan or file for Bankruptcy. We can help you with both.
Cons with debt settlement
What debt settlement companies often do not tell you are the cons in settling debts. Debt settlement is not for everyone and you need to understand the cons.
Credit Reporting
Many debt settlement companies use phrases like “restore your credit” or “buy your dream home”. Unfortunately what they do not tell you is that by settling a debt, you are not paying as agreed, you are paying for less than the full amount owed.
Thus, a credit entry that says “settled for less than the full amount” is not as good as “paid in full” or “paid as agreed.” Most creditors will NOT report that you paid as agreed if you settle a debt, in fact, they will most likely report that the debt was settled for less than the full amount.
The positive side is that they will most likely take the account out of collection and report a zero balance. Getting the account out of collection and eliminating the balance should boost your credit score.
Many debt purchasers may agree to delete their credit reporting entry in exchange for payment. (recall this is the debt buyers entry, not the original creditor. We cannot guarantee how a settled debt will be reported on your credit report.
1099’s
When you settle debts there is a chance that the creditor will send you and the IRS a 1099 for the amount of the debt that was cancelled. Thus, you could potentially have income tax liability for the amount of debt that was cancelled. If you receive a 1099 after settling a debt, you should consult a CPA to determine the potential tax liability.
Tracking a Debt
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