Before filing for bankruptcy, you can take steps to protect your property.

You can use your tax refund to buy things that are exempt: food, some furniture (such as bedding) and clothing. You cannot give the tax refund money to friends or relatives, not even to “hold” for you until the bankruptcy is finished. You cannot use the refund to make payments to a favored creditor within 90 days before filing bankruptcy,but you can make regular monthly payments on cars, homes, phones, and utilities.

Getting Help Does filing bankruptcy makes sense in your circumstances? Contact us for a free consultation: 801-264-6666.

1. Know your rights.

Collection agencies are restricted in how they can collect a debt from you by the Fair Debt Collection Practices Act (FDCPA). They cannot use abusive or profane language. They cannot contact you at any unusual time—only between 8 am and 9 pm, unless you agree otherwise. Collectors cannot contact you at work if they’re told that you’re not allowed to take calls at work. They are limited in what they can say to your friends or family members. See the section below, Inform Others of their Rights.

An original creditor can be exempt from the FDCPA. Business debts are not covered by the FDCPA.

2. Verify who is calling. Make sure you owe the debt.

The collector must send you a “validation notice” five days after they first contact you. This notice tells you how much you owe and the name of the creditor, as well as how to file a dispute if you don’t agree that you owe the money. If the collection agency does not send this to you, notify the collector in writing that you want a verification of the bill. If you dispute this debt, you must send a written response within thirty days to inform the collector of this. If you agree that you owe the money, you can set up a payment plan with the collector and/or contact an attorney to discuss your case.

3. Make sure all communication is in writing. Keep copies of all letters, payment agreements, bills, and processed checks.

It is a very good idea to make sure all your communication with the debt collector is in writing. If you don’t want to speak to the collector on the phone, write them a letter telling them they must communicate with you in writing to collect the debt. Make sure to include a statement that your letter is not meant in any way to acknowledge that you owe this or any other sum of money. Send the letter (and other correspondence) by Certified Mail, Return Receipt Requested.

A debt collector cannot contact you directly if you are represented by an attorney.

4. Inform others of their rights.

A debt collector cannot ask your family, coworkers, or employers or friends anything other than your current location and how to contact you. Collectors cannot tell the third party you owe a debt, unless that third party is a cosigner, executor of your estate, or your guardian (if you are under age 18). If they are calling you at work, make sure to tell them your employer does not permit such calls during the workday and the calls must stop. If you or your family feels that you are being harassed by a collection agency, keep a written record of all your calls and contacts. Contact an attorney.

This list is not intended to be comprehensive, and does not constitute legal advice. For a FREE consultation, contact Liberty Law today: 801-264-6666.

Other helpful information:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm.

You do not need a Social Security card to file bankruptcy, but must have an ITIN (Individual Taxpayer Identification Number). This is the number you get when you pay your taxes to the US Government.

When you file bankruptcy, you must go to a meeting of creditors. At this meeting, you must bring a document that shows your ITIN or Social Security Number, like your ITIN card or Social Security card, or a pay stub.

At the meeting of creditors, you must also bring a photo ID. This ID can be a driver’s license or a driving privilege card.

The bankruptcy Trustee, who represents the Court, should not ask your legal status at the meeting of creditors. You are a debtor like any other person, and after the meeting of creditors, your bankruptcy case will generally close within two months.

All individuals, even citizens, must bring other documents to the meeting of creditors. Please consult with an attorney before filing for bankruptcy so you can have all the documents you need.