Category Archives: Debt Consolidation Lawyer

Learn the effective situation of debt settlement. Get your debt settlement attorneys allows you to work with creditors to restructure your financial obligation.


Can You Be Arrested for Debt? Plus 3 More Frequently Asked Questions

According to experts, consumer debt in the United States rose to $4.19 trillion in 2019. You may be stuck with several types of debt such as credit cards, loans, medical bills, among others. Unexpected circumstances like losing your job can put you in a tough spot to keep paying these debts.

Does this sound familiar? If so, debt collectors may be knocking on your door sooner rather than later. Now you may be asking yourself “Can you be arrested for debt?”

It may seem scary, but learning as much as you can about debt collection is the first step to protect yourself. Don’t know where to start? Here are the top debt collection FAQs you may be asking yourself.

1. Can You Be Arrested for Debt?

No, you can’t be arrested for debt. However, debt collectors can sue you for payment. You may think it’s easier to ignore the lawsuit, but it can end up costing you a lot more.

Most debt collectors file legal actions without a lot of supporting documentation. If you don’t take action, your case may result in a default judgment ordering you to pay more than what you owe.

2. What Behavior Can’t Debt Collectors Engage In?

The Fair Debt Collection Practices Act (FDCPA) protects all consumers from debt collector bad practices. This law bans debt collectors from engaging in harassing and threatening behavior such as threats of violence or arrests.

Under this legislation, debt collectors can’t lie about the amount you owe, charge interest or fees, among other inappropriate behavior. If you’re being subject to this type or similar behavior, you should get help dealing with debt collectors by considering consolidating your debt.

3. When Can Debt Collectors Contact You?

Under the FDCPA, debt collectors can only contact debtors during reasonable hours unless you agree to other times. Examples of unreasonable times are before 8 AM and after 9 PM. Keep in mind the FDCPA regulation and rules don’t apply to creditor’s debt collection departments.

4. Is There a Way to Stop a Debt Collector From Contacting You?

Believe it or not, you can stop debt collectors from contacting you. It’s as easy as sending them a letter asking them to stop and stating that you don’t or owe a certain amount of debt. In your letter, you should ask them to verify your debt.

You must send this document within 30 days of receiving the communication from the collector. The debt collector can keep contacting you if they provide evidence of your debt such as a copy of your bill.

So You Learned the Top Debt Collection FAQs, Now What?

Learning the answer to the question “Can you be arrested for debt?” and other debt collection FAQs is the best way to protect yourself from debt collectors. If you’re being sued by a debt collector, you should consider consulting an attorney.

Believe it or not, some legal experts specialize in debt collection legal actions. While you may not be arrested for your debt, it’s important to comply with any court orders. Before taking any action, schedule an initial consultation with an experienced lawyer to obtain the best outcome in your debt collection case.

Did you find this article useful? Keep checking the rest of our site for more helpful tips and articles to start managing your finances today.


I’m Being Sued for Old Debts. Is That Even Legal?

If you have unpaid debt from years ago, there’s a chance that you may receive a letter in the mail declaring that you’re being sued. And, if you fail to appear in court, the judge will rule in favor of the plaintiff.

There are things you need to keep in mind if you receive a subpoena.

Not sure where to start? Don’t worry, we’ve got you covered.

Let’s take a look at everything you need to know about getting sued for debt.

So… What Happens?

Getting sued for debt involves a creditor filing a complaint with the state that declares you owe them money, interest, and potentially their attorney fees.

As previously mentioned, ignoring the summons and not showing up to court is a poor decision to make. This will likely result in the judge plaintiff the opportunity to freeze your bank account, place a lien on your property, and garnish your wages.

If your finances are already tight, this could cause you to have to take out loans or use credit cards to pay for expenses, putting you in further debt.

So, you’re going to have to take action.

Respond Promptly

You only have a maximum of 30 days to respond, so you can’t take too much time.

Before you do, though, you’ll need to gather some information. This includes:

  • Who the plaintiff is and how much they say you owe.
  • Whether or not you owe the debt.
  • Whether the debt is within the statute limitations. After a certain amount of time, you can’t rightfully be sued—even if creditors attempt to.

It’s important that your written response is accurate and inclusive, though, which may be off-putting to people who aren’t familiar with the law.

So, it’s in your best interest to employ legal assistance for a debt lawsuit to make sure things come out in your favor.

Many attorneys will provide a free consultation, and it’s not uncommon for the creditor to be responsible for your legal fees if you will. This scenario will allow you to defend yourself at no cost.

What If I Don’t Owe The Debt?

Sometimes, names get switched (or mistyped) as debt moves from collector to collector.

Luckily, someone attempting to sue you for debt that you don’t owe will have to prove that you’re obligated to pay it. This means they’ll need financial documents with your signature, proof that you’ve made payments toward the debt in the past, etc.

If (and when) they aren’t able to do so, the judge will dismiss the case and you won’t have to worry about it.

Getting Sued for Debt Can Seem Intimidating

But it doesn’t have to be.

With the above information about getting sued for debt in mind, you’ll be well on your way to

For more legal info that can help you in the future, make sure to check out the rest of our blog.


5 Clear Signs You Need to Hire a Debt Lawyer ASAP

The creditors have you shaking in your boots with their scary letters and threats. If you’re worried that your financial future is going to be in shambles, you may be considering a debt lawyer.

Going to court on your own and confused can be scary so an attorney might be the best choice for you. Continue reading this article to learn the signs that you should hire a debt lawyer.

You Need a Debt Lawyer If —

If you want to protect yourself from a debt related lawsuit a lawyer could be your best option.

1. Creditors Are Calling Your House

You can’t leave your landline phone plugged in because the debt collection calls keep coming. At first, they might be gently urging you to pay your bill or asking if you forgot to pay but things can escalate quickly if you’re not paying your bills.

An attorney can help you figure out how to hold off the creditors and stop the calls.

2. Creditors Call Your Place of Work

When creditors start to call your place of work, that’s when things can get ugly. If your employer finds these calls disruptive and it’s causing problems at work, it won’t look good on you.

Your boss may understand that you’re going through tough times but it could put promotions and other things in jeopardy. Failing to pay debt can be a sign of unreliability.

An attorney can help you figure out what to do about it.

3. You Can’t Pay Back Your Loans Right Now

If you’ve done everything you could but you simply can’t pay your loans back then you need to hire a debt lawyer to help you. Debt lawyers know how to best advise you as you’re going through this process and can save you money and keep you from stressing out.

4. Creditors Are Threatening a Lawsuit

When you’re experiencing threats of lawsuits from your creditors, you need to get help right away. If you have to go to court, they may get a judgment and be able to garnish your wages and cause other problems.

5. Creditors Are Treating You Unfairly

Do you feel that creditors are treating you unfairly? Maybe they are calling you repeatedly or they are calling you late at night when they aren’t supposed to call you.

There may be other instances that are considered to be unfair and a lawyer can help you figure out when creditors are not treating you with fairness.

You may be able to speak with a debt lawyer for a free consultation in some cases.

Learn More Legal Information to Help You Through Life

Now that you know more about when you might need a debt lawyer, why not learn more legal information that can help you through life? We have information on various legal topics that can come in handy in the future.

Navigate through our site, find your favorite section, drop a bookmark and come back for more great reads.


Collection Agencies on Your Trail? Know Your Debtors Rights

Did you take out a bigger loan than you can afford to repay? Are you now receiving several phone calls from collection agencies?

Having a large chunk of debt can affect more than just your credit score. Constant collection calls and daily letters can cause high anxiety. You may feel like there’s no way out or that you’ll be in debt forever.

Luckily, you have something called debtors’ rights. We are going to tell you what you need to know about these rights and how to use them. Keep reading for more information!

Debt Collectors Have Guidelines

Under the Fair Debt Collection Practices Act (FDCPA,) collections agencies can’t call you before 8:00 am or after 9:00 pm. They also cannot call your place of work if you have asked them not to do so.

Collectors also can’t tell other people about your debt but they can ask third parties for your contact information. They can’t use abusive language (which includes profanity or threats of violence) lie about how much you owe or to whom, nor can they claim to be law enforcement.

If the agency is threatening to garnish your wages or come after your property, they must have court-ordered rights to do so.

You Can Hire an Attorney

If the collection agency tells you that they are filing a lawsuit against you, you can take a default judgment or you can fight against your debt lawsuit by obtaining legal representation.

Once you retain a lawyer, the collectors can’t communicate with you anymore and must speak to your representative. At this point, your lawyer will look into whether you actually owe the debt, if the debt is within the statute of limitations, and if the collector filed suit in the correct court.

Make Payments Securely

If your attorney advises you to begin making payments, be sure to do so through a third-party or money order. Do not use checks or give full access to your bank account and routing number.

Unfortunately, some agencies will abuse this information and still withdraw funds even if you only have a few dollars left in your account. This will throw you into an overdraft situation and add even more fees to pay.

Sometimes this mistake has already been made. When you are noticing that payments are still being automatically withdrawn, speak with your bank. There are forms that allow you to stop all automatic payments to a company–unauthorizing their use.

Other Debtors’ Rights

Aside from the fact that debt collectors must follow the above rules, you have a few other debtors’ rights. A collection agency must inform you of the steps to take if the debt isn’t yours and stop contacting you when given written notice.

Remember that stopping the calls and letters won’t cancel your debt. You should probably speak to the agency at least once to confirm the debt is yours and how much you owe. You may also choose to ask for a payment plan.

However you choose to handle your debt situation, there are resources available to help.

If you enjoyed this article and would like more information about debt collections or other legal matters, check out the rest of our site!


Why You Should Hire a Lawyer for Debt Recovery

Owning or running a business is a rewarding and often lucrative project. However, being an entrepreneur also comes with several areas that can lead to frustration. Wasted time and lost profits are among the most common areas of concern for business managers. When employees work inefficiently or don’t report for work, the company loses valuable time, as a link in the workflow process is missing, causing a disruption in overall production. Likewise, when an invoice for goods or services remains unpaid, the company has lost money. Read on to learn several reasons why you should hire a lawyer to assist your business with debt recovery in Melbourne

Free Up Time of Employees

The job of reconciling unpaid invoices generally falls on a staff accountant or an accounting clerk. This type of administrative support requires diligence to persuade others to fulfil their end of a business contract. Most clients and customers appreciate service and pay their invoices in a timely manner, but for those few that don’t, a lot of time and effort can be expended. Hiring a lawyer for debt recovery will free up the time of your staff so they can attend to other important tasks. 

Assistance with Collection Attempts

When business owners make an attempt to collect unpaid invoices, they typically send a letter to the customer in hopes that the failure to pay was simply an oversight. After about one month, the company may send another letter to the customer reminding them of the unpaid balance. Form letters and reminder notices may not be the most effective way for collecting debts, but these tactics are often the only thing that companies have available to them. This is because staff accounting and administrative support personnel aren’tnormally trained in debt collection practices. Furthermore, debt recovery in Melbourne isn’t in the job description for either of these positions. When you hire a debt recovery lawyer, you can get expert assistance with collection attempts rather than resorting to ineffective methods. 

A Range of Helpful Services

Lawyers can provide a range of services for debt recovery. They’ve been successful in partnering with businesses to provide debt recovery in Melbourne for a wide range of companies. There are many benefits to enlisting the help of a professional debt recovery lawyer to secure unpaid balances. Business owners can remain focused on the operations of running their daily processes, while the challenge of collecting past due payments will be handled by the experts. Both parties benefit by the assignment of invoice and payment collection, because in this scenario everyone is tasked with doing what they do best. 

The debt recovery process is certainly not simple, which is why many businesses are relieved to pass the task on to a professional in the industry. Experienced lawyers have tools in place to work with difficult customers. They’re also able to set up payment arrangements that work for customerswho are willing to pay off an old account balance over time.


Fair Debt Collection Practices Act – Supreme Court to Resolve Split in FDCPA Statute of Limitations Issue

The United States Supreme Court recently granted certiorari in a Third Circuit Court of Appeals decision to resolve the split in the circuits regarding an important statutory interpretation of the Fair Debt Collection Practices Act (FDCPA). The question is whether the statute of limitations in a FDCPA case starts when the alleged violation occurred (known as the “occurrence rule”) or when the consumer discovers the alleged violation (known as the “discovery rule”).

The Ninth Circuit held that the one-year limitations period in 15 U.S.C.S. § 1692k(d), part of the FDCPA, began to run when the would-be defendant violated the FDCPA, not when a debtor discovered or should have discovered the violation because the text of the statute stated that it ran from the date the violation occurred. That court affirmed the district court’s judgment.

However, Judge Thomas Hardiman wrote in his Third Circuit opinion of Rotkiske v. Klemm that the appeal required the Court to determine when the statute of limitations begins to run under the Fair Debt Collection Practices Act (FDCPA), and that the Act states that “[a]n action to enforce any liability created by this subchapter may be brought in any appropriate United States district court . . . within one year from the date on which the violation occurs.” Judge Hardiman noted that the United States Courts of Appeals for the Fourth and Ninth Circuits have held that the time begins to run not when the violation occurs, but when it is discovered. However, the Third Circuit disagreed, finding that the FDCPA, in its view, “says what it means and means what it says”: the statute of limitations runs from “the date on which the violation occurs.”


The appellant, Kevin Rotkiske, accumulated credit card debt between 2003 and 2005, which his bank referred to Klemm & Associates (Klemm) for collection. Klemm sued for payment in 2008 and attempted service at an address where Rotkiske no longer lived. The debt collector eventually withdrew the suit when it was unable to locate him. Klemm tried again in January 2009, refiling its suit and attempting service at the same address. Unbeknownst to Rotkiske, somebody at that residence accepted service on his behalf, and Klemm obtained a default judgment for roughly $1,500. Rotkiske discovered the judgment when he applied for a mortgage a few years later.

In 2015, Rotkiske sued Klemm and several associated individuals and entities asserting, inter alia, that their collection efforts violated the FDCPA. The defendants moved to dismiss his FDCPA claim as untimely. The U.S. District Court for the Eastern District of Pennsylvania agreed. The District Court rejected Rotkiske’s argument that the FDCPA’s statute of limitations incorporates a discovery rule that “delays the beginning of a limitations period until the plaintiff knew of or should have known of his injury.” The District Court found that the “actual statutory language” was sufficiently clear that the clock began to run on Defendants’ “last opportunity to comply with the statute,” not upon Rotkiske’s discovery of the violation. The Court also rejected Rotkiske’s request for equitable tolling as duplicative of his discovery rule argument.

Rotkiske appealed the judgment of the District Court, and a panel of the Third Circuit Court of Appeals heard oral argument in January of 2017. Prior to issuing an opinion and judgment, in September 2017, the Court sua sponte ordered rehearing en banc. Oral argument was held on February 21, 2018. After the hearing, the Court rendered its decision.

The Third Circuit Decision and Reasoning

Despite the “occurrence” language of the FDCPA, Rotkiske argued that the discovery rule applied. His argument was grounded in the text of the FDCPA, the policies underlying the Act, decisions of the Fourth and Ninth Circuit Courts of Appeals finding a discovery rule in the FDCPA, and decisions of the Third Circuit that applied a discovery rule to other federal statutes.

From the start, the Third Circuit “summarily” rejected Rotkiske’s assertion that the text of the FDCPA is silent on the discovery rule. While it is true that the Act does not state in haec verba that “the discovery rule shall not apply,” Judge Hardiman explained that the U.S. Supreme Court made clear in TRW Inc. v. Andrews, 534 U.S. 19, 28, 122 S. Ct. 441, 151 L. Ed. 2d 339 (2001), that Congress may “implicitly” provide as much. In that Fair Credit Reporting Act case, the Supreme Court held that Congress had “implicitly excluded a general discovery rule by explicitly including a more limited one.”

Judge Hardiman said that the same natural reading applies to the FDCPA in this appeal. “Congress’s explicit choice of an occurrence rule implicitly excludes a discovery rule.”

The judge provided a “quotidian” or everyday example to illustrate why this is so. When a bill states that payment is timely if it’s “received at the bank by 5:00,” it goes without saying that “a check arriving at 6:00 is late even if it was postmarked a week earlier.” The judge reasoned that “[s]hort of the express command that TRW tells us is not required, it is hard to imagine how Congress could have more clearly foreclosed the discovery rule.”

Rotkiske further argued about the remedial purpose of the FDCPA, which was enacted to thwart the national problem of abusive debt-collection practices. Rotkiske emphasized that “those practices may involve fraud, deception, or self-concealing behavior such that the failure to apply the discovery rule would thwart the principal purpose of the Act.” He cautioned that “[a]bsent the discovery rule, vulnerable consumers will be left without redress if the harm caused by debt collectors’ abusive or deceptive acts remains concealed for over a year.”

Judge Hardiman disagreed with this notion for two reasons. First, to the extent Rotkiske argued that the collection practices the FDCPA proscribes are inherently fraudulent, deceptive, or self-concealing, the statute belies his argument, the judge wrote. “Debtors are often vexed by overzealous or unscrupulous debt collectors precisely because of repetitive contacts by phone or mail.” Hardiman explained that as the language of the FDCPA makes clear, “many violations will be apparent to consumers the moment they occur.” The Act’s statute of limitations applies to all of its provisions, so the Court disagreed with Rotkiske’s suggestion to interpret the Act as if it contemplated only concealed or fraudulent conduct. Second, the Court held that to the extent that FDCPA claims do deal with “’false, deceptive, or misleading representation[s],’ nothing in the Act impairs the discretion district courts possess to avoid patent unfairness in such cases.” (emphasis by the Court). The Court of Appeals noted that equitable tolling remains available in appropriate cases.

Rotkiske asked the Third Circuit to follow the Ninth Circuit’s decision in Mangum v. Action Collection Service, Inc., and the Fourth Circuit’s decision in Lembach v. Bierman, both of which implied a discovery rule in the Act’s statute of limitations. However, Judge Hardiman said that the Third Circuit respectfully declines to do so.

Judge Hardiman explained that neither the Mangum or the Lembach opinion analyzed the “violation occurs” language of the FDCPA. In Mangum, the Ninth Circuit failed to engage the text of the Act. That court relied instead on its expansive holding in the 1998 opinion, Norman-Bloodsaw v. Lawrence Berkeley Lab., which held that “the discovery rule applies to statutes of limitations in federal litigation.” The Ninth Circuit did acknowledge that the Supreme Court had reversed its application of the Norman-Bloodsaw rule to the Fair Credit Reporting Act (“FCRA”) in TRW. Even so, after “brushing aside” TRW’s analysis as “food for thought . . . worth musing on,” the majority of the panel in Mangum concluded that TRW neither overruled nor undermined the Ninth Circuit’s prior precedent concerning the general applicability of the discovery rule.

Similar to the Ninth Circuit in Mangum, Judge Hardiman explained that the Fourth Circuit in Lembach also didn’t engage the statutory text when it determined that a discovery rule would vindicate the policies underlying the FDCPA. The Fourth Circuit in that case reasoned—without mentioning equitable tolling—that because plaintiffs “had no way of discovering the alleged violation,” the defendant “should not be allowed to profit from the statute of limitations when its wrongful acts have been concealed.” Based on the analysis in these two decision, Judge Hardiman and the Third Circuit declined to join either the Ninth or the Fourth Circuits in holding that the statute means something “other than what it plainly says.”

The judge noted that in addition to the opinions of the Fourth and Ninth Circuits in Mangum and Lembach, Rotkiske gave substantial weight to the Third Circuit’s 1994 opinion, Oshiver v. Levin, Fishbein, Sedran & Berman. Hardiman explained that in dictum in that case, the Court applied the discovery rule to Title VII—despite the fact that the statutory language required charges to be filed within 180 days “after the alleged unlawful employment practice occurred.”

Judge Hardiman said that the problem with Rotkiske’s reliance on Oshiver was that its dictum “is in obvious tension with the Supreme Court’s decision in TRW.” Instead of focusing on the statutory text—which the Third Circuit “relegated to a footnote”—the Court described a “general rule” that “the statute of limitations begins to run . . . [on] the date on which the plaintiff discovers” an injury rather than “the date on which the wrong that injures the plaintiff occurs.” (emphasis in original). The Supreme Court’s approach in TRW counsels in favor of reconsidering the Court’s earlier practice of presuming that federal statutes of limitations include an implied discovery rule. Indeed, the Judge said that to the extent that our decisions have relied on such a general presumption in applying a discovery rule to statutes that expressly begin to run when a violation “occurs,” they cannot be reconciled with the Supreme Court’s mandate that when “the text [of a statute] and reasonable inferences from it give a clear answer,” that is “the end of the matter.” Brown v. Gardner, 513 U.S. 115, 120, 115 S. Ct. 552, 130 L. Ed. 2d 462 (1994) (citations omitted).

Rather than imply a discovery rule by rote “in the absence of a contrary directive from Congress,” Judge Hardiman said that the Court must “parse each limitations period using ordinary principles of statutory analysis—beginning with the statutory text and then proceeding to consider its structure and context.” As part of that inquiry into context, he noted that “it may sometimes prove appropriate to consider whether there are ‘historical[] or equitable reasons’ to adopt either an occurrence or a discovery rule.” Rotkiske’s claim is not such a case, he held, because the text of § 1692k(d) plainly incorporates an occurrence rule.

The Third Circuit concluded its opinion by emphasizing that its holding “does nothing to undermine the doctrine of equitable tolling.” The Court already recognized the availability of equitable tolling for civil suits alleging an FDCPA violation. Judge Hardiman said the Court’s opinion shouldn’t be read to foreclose the possibility that equitable tolling might apply to FDCPA violations that involve fraudulent, misleading, or self-concealing conduct.

Thus, the Third Circuit—splitting from the Fourth and Ninth Circuits—held that civil actions alleging violations of the Fair Debt Collection Practices Act must be filed within one year from the date of the violation. Because Rotkiske’s action was filed well after that period expired, his action was untimely. The Third Circuit affirmed the judgment of the District Court.

Petition to the Supreme Court

In Rotkiske’s petition for certiorari, he argued that in TRW, the Supreme Court held the discovery rule does not apply to the FCRA. The Third Circuit held TRW’s methodology supported the its judgment. However, Rotkiske contends that TRW “actually counsels directly opposite to the Third Circuit’s conclusion.” The Supreme Court held in TRW that the FCRA’s embedded statute of limitations precludes application of the discovery rule. Put another way, TRW recognized that Congress in enacting the FCRA therein created—textually—its own statute of limitations paradigm.  

But contrary to the FCRA, the FDCPA doesn’t contain an embedded statute of limitations. Rotkiske contended that, in comparing the FCRA with the FDCPA, the FCRA’s statutory limitations’ text should have required the Third Circuit’s contrary holding (i.e., that the discovery rule while applicable to the FCRA per TRW does not apply to the FDCPA as the FDCPA does not contain its own embedded limitations). Because the Third Circuit either ignored or improperly expanded TRW, Rotkiske asked the Supreme Court to reverse the judgment of the Third Circuit Court of Appeals.

In granting Rotkiske’s petition for certiorari, the United State Supreme Court acknowledged the significance in resolving the split in the circuits regarding this critical statutory interpretation of the FDCPA. Rotkiske v. Klemm, 890 F.3d 422 (3rd Cir. May 15, 2018), cert granted, 2019 U.S. LEXIS 1391, at *1 (Feb. 25, 2019).

Kurt R. Mattson is the President of Union Legal Research. He is the former Director of Library Services and Continuing Education at Lionel Sawyer & Collins in Las Vegas. Prior to this, he worked at BNA and other legal publishers, spending a substantial portion of his career working for Thomson Reuters. He serves as a consultant for several businesses, law firms, and marketing companies.

Kurt received his JD from William Mitchell College of Law and his Masters of Law (LLM) from George Washington University. He received his Masters of Library Information Science (MLIS) from Wayne State University.

Kurt is the editor of Lexis’ BSA/AML Update, co-author of A.S. Pratt’s Mortgage Procedure Guide to Federal and State Compliance, and author of Fair Debt Collection Practices: Federal and State Law and Regulation. He is also a contributing author of Brady on Bank Checks. Kurt is also a contributor to other business and legal publications.


GM Law Firm LLC Defends You Against Unscrupulous Debt Collectors

Boca Raton, FL — February 26, 2019 — GM Law Firm LLC is your seasoned and reputable law agency in Boca Raton, Florida. With years of extensive legal experience, they have the tools and expertise to protect you from harassing debt collectors and creditors. With a team of highly-dedicated lawyers, the firm specializes in consumer protection, consumer law and debt resolution services. If you are overwhelmed by insurmountable debt stemming from loss of employment or economic hardship, one phone call is all you need to get a complimentary debt consultation and solution.

As an industry-leading law agency, GM Law Firm LLC Delray Beach FL has successfully helped countless clients with timely and effective debt management services. If you are dealing with harassing creditors and collectors, the law firm can help protect your rights a consumer across the board. This includes debt resolution for clients dealing with debts from personal emergencies, medical emergencies, divorces, declining home values or business failures.

Similarly, they protect your legal rights when it comes to restitution due to natural disasters or loss of employment. With attorneys that are committed to legal excellence in all debt-related matters. Whether you are a defendant in a collection lawsuit or being harassed by collectors, it simply does not pay to ignore the situation. This can seriously affect your credit ratings and histories, while making it hard to take out future loans or even find gainful employment.

GM Law LLC compliments and positive reviews continue to pour in. They also have great industry ratings, and are synonymous with proven debt defense options from highly-dedicated attorneys. The firm stays abreast of all the latest industry developments, and has strong knowledge of debtor laws and practices. They can even help you prevent debt collection efforts from turning into lawsuits that can last for months or years on end.

With free evaluations, GM Law Firm is able to discuss your current debt and economic hardship issues. Similarly, they will let you know if you are eligible for credit debt resolutions for the following situations:

  • Excessive unsecured credit card debt
  • Consumer — medical — private student loans debt.
  • Repossession, tax liens, property lien, payday loan debt.
  • Debt related to evictions.
  • Loss of income, employment, and small business failure.
  • Debt stemming from medical emergencies, personal emergencies, divorce, excessive student loans, excessive credit card debt, defaults and much more.

Why GM Law Firm LLC?

GM Law Firm LLC has deep roots in the communities they serve. They also go above and beyond to protect your legal rights in lawsuits and court cases. Similarly, they work hard to make sure you are not targeted by unscrupulous debt collectors and agencies. As a consumer, you have rights — but most folks in debt simply do not understand them. This is why the law firm goes those extra miles to explain your rights in debt collection cases and lawsuits. At the same time, the law firm can help you regain financial relief and freedom with proven debt resolution services.

If you are suffering from overwhelming debt, there are legal options available. Simply contact the GM Law Firm LLC today for a no-obligation consultation and get your life back now.



Ways In Which Debt Consolidation Works With Law Based Implications And More To Follow

Few years back, the US news ran nationwide survey of around 1K consumers who said they have taken out debt consolidation loan. The survey actually asked consumers about debt, and why and how they got into this option. They were even asked about the effect of debt consolidation loan on their respective financial lives. These loans were always noted to be one good choice for over 60% of respondents. They indicate their loans have helped them lower the current monthly payments improve credit score and even helped in lowering or eliminating debt. Around 58% of respondents did not even compare pre-approvals from more than two lenders.

Used for managing all kinds of debt:

It is not hard to state that debt consolidation loans are used for managing all levels of debt you are in. respondents indicated that they actually used debt consolidation loans quite frequently for consolidating around $5000 to $10,000 worth of the debt. It was covering around 21% of respondents. There are some other respondents, who have used such loans for debt levels larger and smaller accounts, which can include $5K by 19% and over $50K by 15.3%. No matter how small or big the loan amount might be, debt consolidation came as a long time savior all the time. To know more about that, checking out some simple reviews will help you get to the core and procure some values now.

Over half of borrowers are actually consolidating credit card debt:

Credit cards happen to be the most common form of debt consolidated service with 56% of respondents indicating to have been using credit consolidation debt for covering credit card based debt. Student loans, personal or medical bills, and even payday loans are some of the other common examples of debt consolidation with loans.

  • The largest challenge in paying for the debt has to be the interest. However, many people are getting such loans so that they have to deal with a single monthly payment with fixed or lower interest rates.
  • Around 29% of the respondents have accumulated interest charges as the largest challenge for paying debts. Others were mainly challenged by budgeting for debt payments and keeping track of some of the accounts, paying timely and with inconsistent income.
  • Under 30% of the respondents procured debt consolidation loan for losing interest rate ad manage to challenge accumulated interest based charges. However, consolidating into single monthly payment has popular motivation for getting debt consolidation loan with 35% of respondents. They indicate this point to be the main reason to get loan.
  • Moreover, around 32% of respondents procured debt consolidation loan for the sake of lower monthly payment over here.

Came out with positive outcome for 63% of respondents:

For majority of the respondents, debt consolidation loan proved to be a good choice. Around 28% of them were able to lower monthly payments using the present debt consolidation loan. Around 27% of them lowered or eliminated debt through this help and the rest 9% improved credit score. But, that does not meant debt consolidation proves to be a good choice for everyone. Around 9% of them accrued more dent, 5% paid more overall interest rate and 2% lose their collateral.

How debt consolidation actually works:

Debt consolidation comes under two heads; secured and unsecured. The main difference between these two options is that secured debt loans use collateral while the unsecured ones do not. The latter one is more common but you can also use secured loan for unsecured debt too. The example goes like home equity loan used for the current credit card based debt consolidation.

Heading towards secured debt consolidation:

Secured debt consolidation based loans are available at physical financial institutions like credit unions and banks. They always watch out for collaterals like home equity for securing home equity loan and comprise of better interest rates than the unsecured ones. In case, you have any collateral and can match with the requirements, secured loan might help in saving some bucks on interest as you can pay down the debt.

  • Home equity based debt consolidation loan is a form of secured debt loan offering you with fixed interest rates. The interest paid on home equity loan is mainly tax deductible but the credit card interests are not like that.
  • Well, the home equity loans designed for debt consolidation can be a bit risky to consider as the home might end up being foreclosed if you fail to pay the loan on time.
  • The danger remains if you eat up a major part of the home equity. Therefore, it is always mandatory for you to have plenty of cushions so if anything happens and you might have to sell your house or need to move, you don’t end up losing your place.
  • The repayment term might be 10 years or more, and the home’s value might drop during that time. You might even owe more than the worth of your place. In case, you are facing any form of bankruptcy, credit card based debt remains unsecured and discharged more easily than home equity one.

The unsecured version of debt consolidation loan:

The unsecured debt consolidation does not need collateral and will have easier approval requirements when compared to secured based debt consolidation loan. The unsecured ones will have income requirements to be as low as $24K annually, and the debt to income ratios can be around 50% and minimum FICO score of the credit is 600.

These loans are primarily offered online through marketplace lenders and banks. It makes applying super convenient and easy, and some providers might even offer instant approval online. It means you will know immediately if the loan is likely to work for you or not.

Catch up with the best option whenever the matter is revolving around debt consolidation work. Based on the requirements, the unsecured and secured versions will work great for you. Be sure to learn more before finalizing on the implications over here.


The Law Behind Debt Consolidation Loan To Help You Get Rid Of Debt In 2018

Nobody in this entire world would like to be in the shoe of a person, drowning in debt. Everyone wants to get rid of it. Debt is no doubt costly and might prevent you from reaching any of your financial goals. Some people might consider credit card debt to be bad and student or mortgage loan to be good examples. The truth behind it is that having any form of debt means you are financially beholden to creditor and cannot put money in own pocket, until the obligations are met well. The market comes up with various options when you try to make decisions in eliminating debt. The legalized options under state and federal governments might work their way out as well.

Some legal norms to apply:

In case, you are drowning financially, you have legal rights to declare bankruptcy. The issue over here is that bankruptcy is always a serious derogatory mark on credit. It will not prevent you from procuring any credit in the near future and with time can actually make some credit products unavailable to you and others. It might come in hand at a rather steep price. Moreover, always know that not all debts can be discharged under the term bankruptcy, even if you want to. You might have to heard towards debt consolidation loan reviews for some best help over here.

  • The next easy but harmful way is to ignore debt completely and make it foreign to you. Collection accounts will fall off credit report just after 7 years.
  • At this point of time, delinquency stops just affecting credit any further. Then what is the catch here? The credit is the one over here, which is going to suffer drastically in the meantime.
  • As you are legally obligated still to pay debt, the collector can easily pursue you until statute of limitations might run out in state where you actually live.
  • The best strategy, which can prove to be the best choice for you, will solely depend on your own circumstances. The option over here is to pay off debt completely.

Credit card based debt relief:

You might have heard that some of the creditors are actually willing to settle debt for pennies right on dollar. The reality is somewhat a tad bit different. Credit card debt forgiveness is stated to be tricky and rare and can prove to be rather costly in nature.

  • You might have to be first in some serious arrears. Then you can always convince creditors that you do not have to convince creditors that you do not have means to repay debt and the situation is likely to change a bit.
  • If you can actually manage to work out of debt settlement agreement, the creditor is all but guaranteed to report forgiven debt to IRS. The forgiven debt is mainly considered to be taxable income around here.
  • The current amount of tax that you actually owe on forgiven debt will solely depend on adjusted gross income and tax rate. Even if you fall under the low tax bracket, you can easily face huge bill to IRS.

The current debt settlement based process will involve long term and hard core debt collection attempts by creditors and some serious credit score damage to last for multiple years. Some of the major debt consolidation firms like Freedom Debt Relief or National Debt Relief can help you big time in terms of a fee. They might instruct you big time to stop paying bills and leaving you open to lawsuits by creditors.

Make ways to get out of debt at a faster rate:

In case, you are planning to pay off debt at a faster rate, the best way to do so is two-prolonged approach. You can follow anyone you like and things might work out best for you big time for sure.

  • You can always make changes in the budget, like earn more and spend less. It can help you and afford you to pay more towards debt on monthly scale.
  • You can further reduce cost of debt so that greater portion of each payment can be well applied to principal balance.

Catch up with the field of debt consolidation:

This process, in layman’s term, actually means taking out new loan, which is large enough for repaying some or all of outstanding debt. You get the money, pay off accounts and then make single monthly payment to pay off new debt.

  • Debt consolidation helps in making perfect sense for people, willing to make one payment each month instead of going for several. It is for those people who can actually lower amount of interest they might have to pay by taking new loan.
  • There are some online debt payoff calculators used for figuring out the amount and time you need for paying off debt completely and be debt-free for a change. It is a great way to check the number of years it takes to pay debt off, mainly with high interest credit card debt to make smaller and minimum monthly payments.

Be sure to pay off credit card based debt well and on time:

There are various ways to pay off credit card debt and taking debt consolidation loan is one of those proven ways. You can further take out home equity loan from mortgage lender or can try opening new credit card and then transfer balances over. The latter one might come with 0% of the introductory interest rate. It will provide various months or more for paying down balance interest free.

This solution is designed to help simplify the financial life or just lowering cost of the debt. It can work out on these two options together as well. The only thing to check over here is the kind of legal activities you have to follow and be sure of the norms to consider first. This will save you from any of the legal issues later on while associated with this procedure.


Lawfully Working On Credit Repair Through Debt Consolidation Loans

You cannot deny the fact that life is expensive. When the volume of those monthly payments and bills are threatening the day to day lives, trying to balance the finances can prove to be a difficult task. Therefore, it is not a rocket science to know that credit repair is actually taking a back seat to make the desired ends meet. Whenever you feel yourself deep down in debt and nowhere to go or find any help, debt consolidation seems to be the perfect solution to search for.

You cannot just start working on such relief help without any prior knowledge. You need to be aware of the laws involving this kind of loan relief help and work accordingly. A single mistake can land you in jail or burden you with more fees. To know how important debt consolidation is and how it can help you during crucial times, you are asked to get towards debt settlement reviews for help. Things will definitely start to work out well and right in your favor.

Time to learn more about debt consolidation section:

The current act of the debt consolidation is rather simple. Other than paying off various loans with different interest rates, the balances are actually lumped together right into single loan with fixed or lower interest rates. Most of the lenders might offer you with both assets based secured loans and some of the unsecured personal loans too. It is mandatory to know more about the differences before the matter gets out of your hand.

  • The most common form of collateral for the asset based secured loan has to be the home equity of the borrower.
  • Let’s take one example. The Larkins are known to have a current value of $45K of unsecured form of credit card debt. Even though they can make minimal monthly payments for help, the variable interest rates on each of their five separate credit cards will make it difficult enough to pay down the debt on time.
  • Just for the solution, they actually decide to use the home as proper collateral for securing that $45K loan. The result comes with a fixed interest rate, making it easier for them to repaying the money on time and without any hassle at all. The current home equity loan will allow them well to pay off credit card based companies and focusing solely on one loan.

No matter whatever type of loan you are actually rooting for, the goal will always remain the same. It will revolve around one loan, resulting in one payment.

Checking on the pros to decked right in:

Along with adding to the security of the single loan in lieu of so many, there are so many benefits involving around the field of debt consolidation. So, you might want to get onto those points as well, before you end up with a cover under debt consolidation to work out with.

  • Always remember that higher credit score is almost always the result from the lowered forms of credit card balances. You can safeguard that with the help of debt consolidation loan.
  • It comes with a fixed interest rate. If not fixed, then the interest rate will definitely be a lower one. So, it will help you to pay less every month.
  • You further have the proper ability to just pay down debt in an aggrieve manner with focus relatively on the primary credit card repair.
  • Forgoing hassle of scheduling multiple payments on monthly scale is another benefit which comes with debt consolidation loan. It can further help you with avoidance of various late fees and even bad credit consequences, which will come handy with continued missed payments from your side.
  • There are some chances of possible tax breaks too on the loan interest. If you ever decide to use the home equity or secure any second mortgage, debt consolidation will be of prime help in this regard.
  • Moreover, you cannot avoid the ability to save some money right on emergency fund while paying the debt off in style.

Checking out on the cons:

Now, when it comes to debt and debt saving solutions, not all can be flowers and roses. There are some thorns in it as well. Just like any of the debt saving solutions, there are some issues revolving around the field of debt consolidation as well. So, just like you have learnt about the pros just now, it is great to jump into some cons as well. It will help you to make the right decision when the time demands so.

  • You might have to pay more with every passing time. With lower interest rates, consolidation loans will come with lengthened payment terms. Even though you might have to pay less every month, the years added to loan life will force you to pay more with time. This is a point that you need to cater for.
  • Plateaued interest rate seems to be another con to consider while dealing with this form of loan. The goal over here is likely to pay quite less every month and secure lower interest rate. It might be a bit difficult to find such rate that solves all kinds of financial troubles. Unless the current debt is likely to be attached to higher interest rates, it might prove to be wise to just skip consolidation.
  • Secured loans can prove to be sometimes more preferable to unsecured ones. However, to make sure this option is what you have to deal with, guaranteed repayment is always important to know first. Remember that unpaid credit card debt can always subject to collections. On the other hand, any unpaid home based equity loan is dangerous and can give rise to foreclosure. So, make sure to think wisely about financial situation before putting your roof on line.

Going through the pros and cons will help you big time with the debt consolidation help. Now you know which one to choose and which one to say goodbye to.


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