Bankruptcy of Memphis

The Consumer Financial Protection Bureau , a branch of the federal government, proposed a massive overhaul of the debt collection industry .   If you have debt that you cannot pay, you have been contacted many times by bill collectors, and at all times of the day and night.  Quite often, this forces people into filing either Chapter 7 bankruptcy or Chapter 13 bankruptcy .  Debtors complain to state and federal agencies about unfair or deceptive practices by collection agencies.  The new proposed rules would make debt collectors go through extra steps to prove that a debt is valid before beginning collections.  The debt collectors would be limited to no more than six communication attempts per week, and the hours of approved contact would be more limited.  If a consumer disputes the debt’s validity, the proposals would require the collectors to provide clear and easy way for the consumer to challenge the debt.  Some consumer groups do not think ...

  The Obama Administration has proposed new guidelines that would stop robocalls demanding immediate payment for student loans.  Student loans are a major factors that force people into having to file either Chapter 7 bankruptcy or Chapter 13 bankruptcy .  Although student loans are not dischargeable in bankruptcy , the pressure it puts on a debtor can cause problems with other debts, often making it necessary to file a bankruptcy .  The new proposed guidelines would force student loan collectors from just collecting student loan debt , and would direct the collectors to inform delinquent borrowers of their eligibility for income based repayment plans before demanding they make payments.  It would also require student loan companies to make vigorous efforts to contact borrowers at risk of default and walk them through their options.  The student loan companies would have to form specialized customer service representatives to handle struggling borrowers wh...