Debt issues amplified during holiday season
Millions of Americans are drowning in debt. According to Debt.org we collectively owe $11.4 trillion.
Unfortunately, during this time of year the every-day pressure of debt is significantly and obviously amplified. Purchasing temptation can be overwhelming; and for debts that have already accrued, they can be even harder to pay off as families try to honor gift-giving traditions.
The consequences associated with debt can become overwhelming as the bills themselves. Creditors and debt collectors barrage debtors and their family members with phone calls and letters. The threat of bankruptcy persists. Families fear repossessions. Yet it is important to know that there is hope for those trying to loosen debt’s grip.
Freedom from Harassment
Creditors may call day and night to collect on debts, but debtors are protected from harassment by debt collectors, even those who owe many thousands of dollars.
If you are a debtor, The Fair Debt Collection Practices Act protects you from debt collectors who mislead you, lie to you or tell you they will garnish your wages or take property if they don’t have the legal right to do that. They also cannot call before 8:00 a.m. or after 9:00 p.m. unless you tell them that those times are best for you.
Debtors also have the legal right to stop all debt collector calls and letters, whether they rightfully owe the debt or not. This demand must be sent in written form, and it is advisable to send it by certified mail, return receipt requested or by registered mail to create proof of sending and delivery.
Courts Offer Resources
Whether you rightfully owe the debt or not, if you receive a court summons or a subpoena you should always honor the request to appear in court. Ignoring a summons or subpoena could result in garnished wages, a levy on your car, a seized bank account or other collection activity, all of which can be prevented if you act in time.
A court hearing gives you the chance to present any defenses that you have and to discuss what income and assets you own and need. You should also file a claim of exemption of property with the court clerk.
A claim of exemption protects some types of income, such as child support payments, Veterans Administration benefits, Social Security benefits and more. This can also prevent a court from taking specified items from you, like your car.
The Unjust Burden
In some cases you may be billed for a debt that isn’t yours. At Legal Aid Society we run into these cases every year. Take “Robert’s” case, for instance.
Robert was told by a credit card company that he owed a large unpaid balance, though he had never held an account with the company. After asking for proof of the debt, Robert was sent copies of checks that were signed by his ex-wife.
Despite his efforts to prove that the account was opened without his consent, the company filed a lawsuit against Robert to collect the credit card debt. His ex-wife was not sued by the company and did not voluntarily take responsibility for her actions.
After exhausting his resources, Robert reached out to Legal Aid Society for help. We were able to have the lawsuit against Robert dismissed and have his ex-wife substituted as the correct defendant. A judgment was entered against his ex-wife for the debt she incurred while using Robert’s identity.
Similar situations can occur as a result of identity theft or inaccurate information. For those who find themselves burdened with a debt they don’t owe, it is important to know that it can, and should, be challenged.
Legal Aid Society is here to assist low-income individuals who are facing troubling debt situations. It is our wish that those with debt don’t have to walk through this season hopeless or alone. We have free legal help pamphlets that you can download on our website, http://www.las.org/booklets/money_problems. You can also contact us directly by calling 1-800-238-1443.
David Tarpley is the lead attorney in the Consumer and Housing Division of the Nashville office of Legal Aid Society of Middle Tennessee and the Cumberlands.