Depends on the type of Bankruptcy. If it is a CH 13 many times the creditors receive more money than if they choose to forgive a portion of the debt and settle direct with the consumer. This is because of the strict "means test" for CH 7.
If a collector is calling a cell phone without permission, it's most likely a TCPA violation (google to see many cases- debt collector TCPA, there's a lot of court action on it)
I agree with Bonzarel. The obvious solution is to ban debt collection calls to cell phones, period. Not everybody has the same options on their mobile plans, and some have strict time/call/texting limits and/or restrictions.
Bonzarel. while I think your idea is a good one, it could open the floodgates to interest rate padding the debt until it reaches one of the "floors" that you are suggesting. 30% interest rate charges, penalties and fees (which in turn also get hit with a 30% interest rate charge), can accelerate even a 500 dollar debt into the thousands in less than 24 months time.
Hi bonzarel, thank you for your participation on RegulationRoom. If the debt goes to court, you are right that the spouse’s legal responsibility for that debt may depend on local and state laws. However, for the purpose of collection calls, the FDCPA defines consumer to include the consumer's spouse, parent (if the consumer is a minor), guardian, executor, or administrator. CFPB is wondering if they should prevent debt collectors from being able to connect a spouse if the couple is separated, if there is a restraining order, or if the consumer tells the collector not to contact her/his spouse.
U.S. Marine
1
Depends on the type of Bankruptcy. If it is a CH 13 many times the creditors receive more money than if they choose to forgive a portion of the debt and settle direct with the consumer. This is because of the strict "means test" for CH 7.
View this comment in the discussion thread
CG
2
If a collector is calling a cell phone without permission, it's most likely a TCPA violation (google to see many cases- debt collector TCPA, there's a lot of court action on it)
View this comment in the discussion thread
lamizzee
3
I agree with Bonzarel. The obvious solution is to ban debt collection calls to cell phones, period. Not everybody has the same options on their mobile plans, and some have strict time/call/texting limits and/or restrictions.
View this comment in the discussion thread
Debt Neutrality Petition
4
Bonzarel. while I think your idea is a good one, it could open the floodgates to interest rate padding the debt until it reaches one of the "floors" that you are suggesting. 30% interest rate charges, penalties and fees (which in turn also get hit with a 30% interest rate charge), can accelerate even a 500 dollar debt into the thousands in less than 24 months time.
View this comment in the discussion thread
Moderator
5
Hi bonzarel, thank you for your participation on RegulationRoom. If the debt goes to court, you are right that the spouse’s legal responsibility for that debt may depend on local and state laws. However, for the purpose of collection calls, the FDCPA defines consumer to include the consumer's spouse, parent (if the consumer is a minor), guardian, executor, or administrator. CFPB is wondering if they should prevent debt collectors from being able to connect a spouse if the couple is separated, if there is a restraining order, or if the consumer tells the collector not to contact her/his spouse.
View this comment in the discussion thread
gmt512
6
Excellent.
View this comment in the discussion thread