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The amount of consumer credit card debt in the typical U.S. home is $7,200 on average. With impending employment lay-offs and increasing medical bills, this consumer debt is quickly becoming impossible to pay off. If you are a consumer with debt it is vital that you learn about all the components in the Fair Debt Collection Practices Act.

This act is often disregarded by many debt collection agencies. In this act, each component outlines a strict guideline needed by the FDCPA and it this is violated then the debt collection may be void in its totality. There may also be avenues provided for the consumer to file a suit against the collection agency in question.

A fact not known to many consumers is that the FDCPA requires all written and verbal debt collection attempts should have an abbreviated Miranda Warning included. This is not the full statement used in the process of an arrest but a mini version is needed. This means that the debt collection agency has to, by federal law, introduce themselves by name, state that a call is coming from a debt collection agency and advise that the information the consumer states will be utilized in the debt collection process. Without these three major components in any written or oral communication the debt collection attempt at this instance is considered illegal. continue reading…

The inability of an individual or organization to pay its debit is known as bankruptcy. You can be made bankrupt by the following three ways.

1. Voluntarily -  It is initiated by the debtor (individual or organization)
2. Involuntarily – It is initiated by creditor who owed £750 minimum money.
3. The third bankruptcy is initiated by the supervisor or anyone bound by an Individual Voluntary Arrangement procedure (IVA)

When an individual knows that he can not pay his/her debt then he/she should always consider bankruptcy option. The discharge period is different in different bankruptcy orders. It is always advisable to look at the alternatives as soon as you know that you may be a victim of bankruptcy.

You know you can’t pay your debts; bankruptcy is the option for you to free yourself from overwhelming debts and take a new start to your work but you might have to face some restrictions. One advantage of bankruptcy is that you may get possible automatic discharge after one year of time.

Nevertheless, the implications of bankruptcy are really frightening. You have no control over your assets. You can’t get credit above a fixed amount as long as your lender permits you. You have to lose your company’s director seat. You have no chance to promote or manage a limited company with out court’s permission. CAs and lawyers have to stop their practices. You have to lose your JP (Justice of Peace) position. You don’t have any chance to become a parliament member. Similarly, there is no chance to become a member of local authority. After the cancellation, your credit doesn’t stay stable for years. There are chances that you will be examined in court etc. continue reading…