Archives for April 2014

Protecting Your Rights with Aggressive Creditors

Your Rights When a Creditor Bullies You

When you are struggling to make ends meet, the stress and anxiety can make your life miserable. The last thing you need is an aggressive creditor or collection agency calling you at all hours of the day or night, threatening you with legal action or even calling family or neighbors and telling them about your personal debts. You don’t have to be a victim of offensive or inappropriate tactics by bill collectors. You have rights.

Personal Debt

For a “personal, family, or household” debt, you have a wide range of rights under a federal statute, the Fair Debt Collection Practices Act (FDCPA). This law limits the hours during which a creditor or collection agency may call you. It also requires that debt collectors stop communicating with you if you provide written notice that you want no more contact. It also forbids communication with any third party (other than your spouse or attorney) except to obtain location information. (Note this does not apply to “business debts”, nor does it apply to a creditor who is contacting you to collect their own debt.)

If you have a debt collector or creditor who is harassing you, we recommend that you take the following steps:

  • Log all calls — Ask for the name of the debt collector and the company they represent. Get a phone number as well.
  • Hire an attorney — Once you are represented by counsel, you can simply tell all debt collectors to direct any further communications to your lawyer.
  • If debt collectors continue to call, record the conversation (you should always advise them that they are being recorded. Recording calls from states such as California can result in criminal or civil liability).

Business Debt

The FDCPA does not apply to business obligations. If you are being hounded because of a business debt, your best course of action is to retain legal counsel and to advise any debt collector that they must communicate only with your attorney. If they disregard your request, you should log all calls and record conversations, if possible.

Whether or not these laws apply, you may have other protections.

Contact Neuner & Ventura, LLP

At Neuner & Ventura, LLP, we provide a free initial consultation to every client. We do, however, reserve the right to charge a fee to review any work done by another attorney. To set up a meeting, call Neuner & Ventura at (856) 596-2828 or send us an e-mail. Evening and weekend appointments are available upon request.

Representing Clients across South Jersey

Disposing of Property Before You File for Bankruptcy

When you are struggling to get your finances in order, you may choose to sell assets that you don’t need, with the hope that you can make enough money to resolve your problems. You may be tempted to “gift” items of value. If you find that you still need to seek bankruptcy protection, you may face questions from the bankruptcy court or trustee about the disposition of those assets. We tell our clients that “bankruptcy is a fishbowl…it is safest to be able to be transparent”. You must always take care to avoid the appearance that your actions involved a fraudulent transfer.

Taking the Right Steps to Avoid Potential Problems

The most important thing to do is make certain that any sale is clearly what would be considered an “arm’s-length transaction.” This essentially means that the terms of the transaction do not reflect that the parties have common interests or that any favoritism was involved because of the relationship of the parties. The classic example of a fraudulent transfer is the sale or gift of extremely valuable property to a family member or friend for far less than its market value. One of the best ways to show this is to get a fair-market appraisal or some other reliable evidence of value of the goods sold. For cars, sites like www.kbb.com are good. For other property besides real estate, EBay or Craigslist may provide evidence of possible market value.

You need to be careful as well with gifts to charitable organizations, from a church to a soup kitchen or other nonprofit. You may be required to show that the organization is bona fide and that you make similar donations on a regular basis. You may also be required to show that you will not be a primary beneficiary of the donation. For example, it may be considered a fraudulent transfer if you donate a piano to your church when you are the church pianist.

Regardless of how you distribute property before a bankruptcy, it is critical that you keep accurate records. Ideally, your records should show what you sold or gave away, who the recipient was, the goods’ fair market value and whether there were other potential buyers.

If you are in such a situation, you should not delay in getting early qualified legal advice, in case a bankruptcy or similar action becomes necessary.

Contact Us

We provide a free initial consultation to every client. We do, however, reserve the right to charge a fee to review any work done by another attorney. For an appointment, call our office at (856) 596-2828 or send us an e-mail. Evening and weekend appointments are available upon request.

What to Do If You Expect Your Vehicle to Be Repossessed

Protect Your Rights When You Fear Repossession of a Vehicle

It happens to a lot of people — you encounter financial difficulties and find yourself behind on your financial obligations. You may be in arrears on the payment for your car or truck, and may have received notice of a potential repossession. What are your rights and what can you do to protect yourself?

When a repossession can take place without court order.

As a general rule (in New Jersey) your lender or their agent (a repo man) may not “breach the peace” without a court order. This means they cannot use or threaten physical force, and they cannot come into your home, garage or a locked closed area to repossess your vehicle without a court order or without your consent. They may, however, repossess the car on the street, in an open driveway, in front of your house or in any other public place without a court order and without notice to you.

It’s also important to understand that if your car is repossessed with personal items inside of it, you risk never seeing those items again. Accordingly, if you anticipate that your vehicle may be repossessed and you must leave it in a public place, you should take care not to leave any valuables in it.

In New Jersey, as long as the license plates are on the car, you remain potentially liable as the owner for any injury or damage someone operating the car may cause, and you need to keep the car insured. You might consider taking the tags off the vehicle and leaving it in front of your home or in some public place. However, when you do, you will be considered to have abandoned the vehicle and may be cited by police for violating the law.

If you file a bankruptcy case, the automatic stay will protect you from repossession for a limited time. If you file a Chapter 13 case, you may be able to bring the loan current through payments under a bankruptcy plan over 3 to 5 years, or you may have other options through the “cramdown” provisions of the Bankruptcy Code. However, if you know that you won’t be able to bring the account current and want to avoid the fear and hassle involved with an actual repossession, we recommend making arrangements to voluntarily surrender the car to the lender at an agreed location (which may be an area dealer). When you do, be sure to remove the license plates when you get to the drop off location. If you are a New Jersey resident, you should surrender them to the nearest DMV office, where you will get a receipt that you can use to remove the vehicle from your auto insurance.

Reliable transportation to get to and from work is often essential to getting back on your feet financially. When this is threatened, getting qualified legal advice and doing some careful planning is essential.

Contact Our Office

At Neuner & Ventura, LLP, we work hard to alleviate the stress, anxiety and confusion that come with a potential bankruptcy filing. We offer a free initial consultation to every client. We do, however, reserve the right to charge a fee to review any work done by another attorney. For an appointment, call us at (856) 596-2828 or send us an e-mail. Evening and weekend appointments are available upon request.

Representing Clients across South Jersey

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