Debt collection agencies (also known as debt collection agencies, debt collection agencies) A private company or individual — including a debt collector or law firm — that attempts to collect personal or household debts from New York residents. The debt collector can: New York State`s Exempt Income Protection Act (EIPA), which automatically protects a certain amount of money in a consumer`s bank account from freezing or collection by collection agencies. Under the EIPA, when funds are frozen in a consumer`s bank account, the bank must provide the consumer with certain forms called exemption application forms. The consumer can use these forms to request that frozen funds be exempted. The following funds (in alphabetical order) are generally exempt from freezing or seizure: The time limit for release varies depending on the chapter under which the case is filed. For example, in a Chapter 7 (liquidation) case, the court normally grants discharge immediately after the deadline for filing a claim against dismissal and the time limit for filing an application to dismiss the proceedings for significant abuse (60 days after the first hearing date 341). As a general rule, this occurs approximately four months after the date on which the debtor submits the application to the registry of the insolvency court. In individual cases under Chapter 11 and in cases under Chapter 12 (settlement of debts of a family farmer or fisherman) and Chapter 13 (Adjustment of debts of a person with a regular income), the court generally grants discharge as soon as possible after the debtor has made all payments under the plan. Since a Chapter 12 or Chapter 13 plan may provide for payments over a period of three to five years, release is normally granted approximately four years after the filing date. The court may refuse to grant discharge to an individual debtor in a Chapter 7 or Chapter 13 case if the debtor does not take „a course in financial management“. The bankruptcy law provides limited exceptions to the „financial management“ requirement if the U.S.
trustee or receiver determines that training programs are inadequate, or if the debtor is disabled or unable to work, or is on active military service in a combat zone. If the debtor decides to confirm a debt, it must do so before the debt relief is registered. The debtor must sign a written confirmation agreement and submit it to the court. 11 U.S.C. § 524(C). Bankruptcy law requires that stand-by agreements include a comprehensive set of disclosures described in 11 U.S.C. § 524(k). Among other things, disclosures must inform the debtor of the amount of debt to be confirmed and its calculation and this confirmation means that the debtor`s personal responsibility for this debt will not be fulfilled in the event of bankruptcy. Disclosures also require the debtor to sign and submit a statement of current revenues and expenditures showing that the balance of revenues is sufficient to settle the confirmed debt. If the balance is insufficient to pay the debt to be confirmed, there is a presumption of undue hardship and the court may decide not to approve the stand-by agreement. Unless the debtor is represented by a lawyer, the bankruptcy judge must approve the stand-by agreement. Debt relief relieves individual debtors of personal responsibility for most debts and prevents creditors who owe those debts from taking collection action against the debtor.
Since Chapter 7 debt relief is subject to numerous exceptions, debtors should consult with appropriate legal counsel before filing an application to discuss the scope of debt relief. In general, with the exception of rejected or converted cases, individual debtors receive Chapter 7 relief in more than 99 per cent of cases. In most cases, the insolvency court issues a debt relief decision relatively early in the case – usually 60 to 90 days after the date set for the first meeting of creditors – unless an interested party appeals the debt relief or a request for an extension of the opposition period. Fed. R. Bankr. P. 4004(c).
Table of Contents§801. Short title§802. Results of the Congress and Declaration of Intent§803. Definitions§804. Collection of Location Information§805. Debt Recovery Communication§806. Harassment or abuse §807. False or misleading statements§808. Unfair practices§809.
Validation of debts§810. Multiple debts§811. Claims of collection agencies §812. Provision of certain misleading forms§ 813 Civil liability§814 Administrative application§815 Reports of the Presidium to the Congress; Views of Other Federal Agencies§816 Relationship to U.S. Laws§817 State Order Exemption§818. Exemption for certain bad cheque enforcement programs operated by private entities§ 819 Effective Date Some businesses become insolvent because their goods or services do not adapt to the changing needs of consumers. When consumers start doing business with other companies that offer a wider range of products and services, the company loses profits if it does not adapt to the market. Expenses exceed revenues and bills remain unpaid. (3) Publication of a list of consumers who purportedly refuse to pay their debts, except to a consumer information bureau or to persons who meet the conditions of section 1681a(f) or 1681b (3) 1 of this title.
(a) in which the consumer has signed the contract attached; or (1) in the case of an individual action under clause (a)(2)(A) of this section, the frequency and persistence of the non-compliance by the collector, the nature of the non-compliance and the extent to which the non-compliance was intentional; or If an entrepreneur plans to restructure the company`s debt, they will develop a realistic plan that will show how they can reduce the company`s overhead costs and continue their business operations.