Excessive Automated Debt Collection Calls Violate Consumer Rights

Have you been getting too many automated debt collection calls? If so, you may be entitled to compensation under the Fair Debt Collection Practices Act (FDCPA). The question is, how many calls does it take to violate the FDCPA or the Telephone Consumer Protection Act?

Illegal Debt Collection Practices

If you owe someone money, they certainly have a right to try and collect it by calling you. However, it matters how many times they call you a day, week or month using automated debt collection calls, also known as robocalls, which are automated phone calls that use both a computerized autodialer and a computer-delivered pre-recorded message.

While there’s no rule to define how many calls it takes to constitute an illegal debt collection practice, a U.S. District Court judge in Tennessee recently ruled that 17 calls a month was too much and that consumers who received these calls are entitled to file suit against the debt collector. In his opinion, he reasoned:

Consumer Debt Protection Laws

Consumers are protected by several laws to make sure that debt collection practices are fair and reasonable. The Fair Debt Collection Practices Act (FDCPA) and the Telephone Consumer Protection Act (TCPA) are two of those laws which, if violated, can result in up to $1,500 in fines per violation. Here’s how they work:
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What is Michigan Bankruptcy Means Test?

Who Can Qualify for Bankruptcy Under Chapter 7?

The means test is required for anyone looking to file Chapter 7 bankruptcy. This is an income-based test designed to reserve the powerful benefits of Chapter 7 for those who truly cannot afford to pay back their debts.

If you’re left with little disposable income each month to pay your bills, you’ll likely be able to file Chapter 7 bankruptcy and discharge your unsecured debts. Learn more about the means test:

The Bankruptcy Means Test: Who Can File?

The bankruptcy law was designed to ensure that Chapter 7 bankruptcy protection is given to those who need it most. The means test is the qualifying step for those looking for file Chapter 7.

The Chapter 7 means test is actually a formula that is used in determining whether or not an individual would have enough money available to make minimal payments to creditors in a Chapter 13 bankruptcy plan. In many cases, those who want to file Chapter 7 are able to do so.

One of the court’s fundamental goals in bankruptcy is to reserve Chapter 7 for men and women who have no means to repay their debts. Before the law change, there were fewer restrictions on eligibility for those who wished to wipe out credit card debt, medical bills, and most personal loans through Chapter 7 bankruptcy (regardless of their ability to repay their debts).

Are you wondering if Chapter 7 is right for you? Talk to Firebaugh & Andrews about your eligibility to file bankruptcy under Chapter 7 or 13:

Step One: Median Income Comparison

The first step in the Chapter 7 bankruptcy means test is simple: it compares your income to the median income in your state for a family the same size as yours.

The median income for your family size may differ dramatically depending upon where you live, and an attorney can tell you whether you are above or below the applicable median income.

If your income is higher than the median income, it doesn’t necessarily mean that you can’t file for Chapter 7 bankruptcy; it just Intriggers the second step in the test.

Homestead (Michigan Income Guidelines)

  • $30,000 for your residence
  • $45,000 if debtor is 65-years-old or older or disabled

Wages

  • Up to 60 percent of wages, but not less than $15 per week, for householders with family
  • Up to 40 percent of wages, but not less than $10 per week, for anyone else

Automobiles

  • Up to $2,775 for one vehicle

Other Property

  • 100 percent of family pictures, clothing, fuel for six months, burial plots, health aids
  • Up to $450 per item, with a total value of no more than $3,000, for household goods, furniture, utensils, books and appliances
  • $500 in value of a church pew
  • $2,000 in value of crops, farm animals and feed
  • $500 in value of household pets
  • $500 in value of one computer and accessories
  • $2,000 in value of tools, implements, materials and other things to enable a person to carry on a profession.
  • 100 percent of worker’s compensation, unemployment and ex-servicemen’s benefits

Step Two: Calculating Disposable Income and Unsecured Debts

The second step is a bit more complicated, and actually breaks down into separate pieces.

Certain allowable expenses (determined by IRS guidelines) are subtracted from your income to find your “disposable income.”

If your projected disposable income over the next five years equals less than $6,000 ($100/month), you will likely “pass” and become eligible to file under Chapter 7.

If your disposable income is greater than $10,000 over the next five years, a presumption arises that you do not really need to file for Chapter 7 bankruptcy. If you can demonstrate special circumstances, you may still be allowed to do so.

In the grey area, between $6,000 and $10,000, another calculation is typically required.

This calculation compares your disposable income over the next five years to a percentage of your unsecured debt to determine whether any significant repayment to your creditors is possible.

If your disposable income over that five years is greater than 25 percent of your unsecured, non-priority debts, you’ll probably find yourself in the same circumstances as if you’d had more than $10,000 in disposable income.

If your disposable income over a five year period is less than 25 percent of your unsecured, non-priority debts, you will likely “pass” the means test.

You Don’t Need to Go Through the Chapter 7 Means Test Alone

Firebaugh & Andrews can crunch the numbers for you and tell you whether or not you qualify for Chapter 7 bankruptcy under the means test.

The calculation can be complicated, not only because of the numerous steps that may be involved, but because it requires an understanding of the rules concerning how your income is calculated for means test purposes and which debts are classified as unsecured and non-priority.

Many people who want to file for Chapter 7 bankruptcy find that they are still eligible to do so. Firebaugh & Andrews  can help you determine how the means test may affect your bankruptcy options.

Call us today for your fee evaluation 734-722-2999

Have you filed recently for bankruptcy?

Have you filed recently for bankruptcy? Are you worried that your chances for credit are gone? If so, here’s some good news: you can still get a credit card. And here’s some better news: you can start taking steps immediately to rebuild your credit. With careful planning, you’ll soon be back on financial track. Read on to learn more about applying for a credit card after bankruptcy.   Credit After Bankruptcy  A bankruptcy filing can stay on your credit report for up to ten years. Yet you do not have to wait a decade before applying for a credit card. Lenders decide to approve or deny credit on an individual basis. Many companies offer cards specifically designed for those with poor credit. This means that you may be approved for a credit card quickly after bankruptcy.

Before you apply for a credit card, keep in mind that due to the bankruptcy filing, you may be viewed as a higher risk customer to lenders. This means that it might be more expensive to obtain and keep a credit card. Cards for those with poor credit usually come with higher interest rates and lower credit limits. Remember that having a credit card is a privilege. If you use it wisely, you will be able to enjoy the many benefits involved.   Imagine Gold MasterCard   The Imagine Gold MasterCard is a smart card to apply for after bankruptcy. It accepts all applications and does not require a security deposit. Even better, it reports to three major credit bureaus. There are several fees involved with this card, including an annual fee of $150 and a one-time processing fee of $4.95. As you use the card and pay off the balance each month, you can improve your credit score.
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