We received this email from Brenda:
i have been harass, threathen, verbally abuse by bill collector, true, i got behind in a bill, and really they refuse to set up any thype of payment plan because i am too far behind, and they want all the money, it has increase due to finance charge they keep adding, i am on ss diability, and they threaten to get by money out of the money what do i do.
Brenda, thank you for your email. First, the good news here is that bill collectors may not garnish money from your bank account if it came from Social Security. You do need to make sure that your bank knows that the money in your account came from Social Security and you should no co-mingle your Social Security funds with any other money.
Second, you should write a letter to the collector advising the collection agency that (1) you are judgment proof, and that you have no assets and your only source of income is Social Security; (2) that pursuant to the Fair Debt Collection Practices Act you want them to leave you alone and (3) that you request that this debt be written off as bad debt.
I would not offer these folks any money as they have no leverage against you at all. If they are verbally abusing and threatening you, they are violating the law and you could sue them for damages.
This might be a situation where you may want to contact a lawyer to write one or more letters on your behalf.
Filed under Debt collection issues by 
The office of the United States Trustee has released new median income numbers for bankruptcy cases filed in Tennessee as of February 1, 2008 and thereafter. We expect that these numbers will remain in effect until around October 1, 2008. Here are the current numbers:
| 1 person household | 2 person household | 3 person household | 4 person household |
each additional person add… |
| $36,380 | $46,039 | $53,337 | $61,856 | $6,900 |
You can review the full median income chart at the U.S. Trustee’s web site.
Filed under Bankruptcy Resources on the Internet, Median income issues by
My ex owes $50,000.00 in back child support. He made a payment of about $260 in august and the child support office recieved info in December that he had filed bankruptcy. I am told that this will make it easier for him to pay his obligations. I guess my question(s) is/are when would i maybe get support from him and what can I do?
–R
Clark and Washington’s Answer: R, thanks for your question. First, recognize that under current law, bankruptcy does not allow a debtor to eliminate child support obligations. If your ex filed a Chapter 7, he would presumably have more money to allocate for child support if he was able to get rid of his credit card or other debt. If he filed a Chapter 13, then his on-going child support would be part of his budget and his Chapter 13 plan should have addressed how he was going to make up any arrearage.
You may want to find out a little more about your ex’s bankruptcy. Bankruptcy paperwork is a matter of public record and you should get a copy of his petition and associated documents. You don’t say where he filed bankruptcy – but bankruptcy paperwork is available through a national database called PACER.
At the end of the day, your ex’s obligation to pay you child support will not be eliminated or modified as a result of his bankruptcy filing.
Filed under Child support by
At Clark and Washington, we get a lot of questions about the credit counseling and financial management course requirements set out in the bankruptcy laws. When are these courses required? How much do they cost? Why are there two courses? How long do the courses take?
Here is a brief overview of the credit and financial management courses that you are required to take as part of your bankruptcy filing:
Pre-Bankruptcy Credit Counseling
Before you file, you must complete a "credit counseling" course. This counseling requirement applies whether you are filing Chapter 7 or Chapter 13. The certification certificate that you receive upon completion of this course is part of our standard filing paperwork. Pre-filing credit counselors must be Trustee approved. Here is what will be covered:
- the counselor will evaluate your financial situation
- the counselor will provide information about consumer debts (i.e., credit cards and consumer loans) and will discuss alternatives to bankruptcy
- the counselor will discuss budgeting and help you evaluate whether you have enough in your budget to pursue a debt workout rather than bankruptcy
- if requested, the counselor will refer you to a debt management agency for the creation of a personal debt management plan
- the counselor will attempt to offer a long term view of your financial activities and habits
Generally the credit counseling courses last anywhere from 60 to 90 minutes and can be done in person, on the web or via telephone. Most of the credit counseling agencies we have seen offer this counseling for between $35 and $50 per person. If you cannot afford to pay the counselor’s fee, you may request a fee waiver from the counselor’s office. All fees and payment should be discussed and agreed to prior to the session.
Pre-Discharge Financial management Course
If you successfully complete your bankruptcy, your judge will issue an official court document called an "order of discharge." This discharge order formally terminates your obligation to pay the debts that were included in your case. Before you can get this discharge order, however, you must complete a course called the Financial Management Education course. As is the case with pre-bankruptcy credit counseling, the financial managment counselor must be approved by the Trustee in your filing jurisdiction. The purpose of the financial management course is to educate you about:
- developing a budget and living within your means
- developing better spending habits
- learning about money management, including saving, budgeting and checkbook control
- wise use of credit – what to avoid when accessing available credit
Generally financial management courses last about two hours and can be done in person, on the web or via telephone. As is the case with credit counseling, the fee will be in the $35 to $50 range.
The financial management counseling company will fax or email a certificate to you and/or your lawyer. This certificate must be filed with the clerk of court. If you do not file this certificate prior to the time your case is closed, you will not receive a discharge.
Both course completion certifications together prove that the debtor has been educated by professionals to understand proper budgeting, money management and how to use credit without ending up in trouble. Of course these aren’t the only bankruptcy filing requirements, but these are two of the mandatory steps. If you have any specific questions about pre-bankruptcy credit counseling or about pre-discharge financial management education, please call our office in Chattanooga, Nashville or Knoxville.
Filed under Getting Started by
