If you are one of those burdened with debts and seeking help from a debt settlement agency, then you have to be careful because there is a chance that you may end up worse off than you were. The settlement agencies usually charge between 15% to 20% of a consumer’s credit card balance as fees. It has been estimated that consumers rarely get out of debt settlement programs with their debts cleared. In most situations, consumers get out of these debt settlement programs worse off with severely damaged credits, continuous threats from collection agencies and lawsuits from their creditors.

The first thing the settlement agencies tell you is to stop making payments to your creditors and rather make the payments into a special account that they will set up for you. They do their best to assure you that you will have nothing to worry about once you start the program. They tell you once you manage to reach a certain amount, they will strike a deal with your creditors to cut your debt by half and pay the debt off. This debt settlement program usually has to last between 2 and 3 years.

All this information that the debt settlement companies provide to consumers can be best described as fraudulent if not deceptive. This is because after you start the program, you will soon realize that your participation in the program does not necessarily stop the calls and threats from your creditors and collection agencies. When you start getting calls from your creditors and debt collection agencies, you will immediately call your debt settlement agency thinking that they have you covered. The usual response from them will either be that you do not yet have enough money in your account to cover the debt or that they have no control over the actions of your creditors and collection agencies. What will shock you even further will be the realization that you only have about half of the money you have been paying so far in your special account. For example if you have managed to pay about $3000, you will find out you only have about $1500 in your account. When you ask why, your debt settlement agency will tell you they used the about half of your money to cover administrative fees. Meanwhile, the calls and threats of lawsuits from your creditors and collection agencies will be forcing you into bankruptcy.

Before you sign on to any debt settlement program, please contact your qualified Bronx, Brooklyn, Queens, Manhattan and other New York City bankruptcy attorney for counsel. Do not make that choice without a bankruptcy lawyer and drown yourself deeper in debt.

Here is news for you. Federal law prohibits your employer from discriminating against you or from terminating your employment solely because you filed for bankruptcy. The reality now is that a great number of people in New York City and possibly someone near you in the Bronx, Queens, Brooklyn and Manhattan have filed or are filing for bankruptcy. Businesses cannot help it but have a good percentage of that number in their companies. It’s a reality that everyone is facing and so companies would rather not do anything that would appear to be discriminating against their employees.

Besides, you’ve got the law on your side. Your employers would rather have you working than you suing them for huge sums for discrimination.

Before a debt collection agency starts pursuing you for unpaid debts, it must first give you notice of the debt and also provide you with an opportunity to either confirm or deny the debt. Every person who has a claim against another must give that other person notice of the claim and a chance for that other person to contest the claim or debt in court. This is known as service of process. The service may be faulty if the debt collection agency fails to properly investigate or find the actual residence of the debtor and serves process at the wrong address. Don’t succumb to pressure from these collection agents. If you have not been given proper notice as explained here, call your NY bankruptcy attorney now.

The most common unfair debt collection practice is where the debt collection agency or lawyer harasses or scares you, the debtor through continuous phone calls to the debtor’s home or cell phone. If a debt collection agent calls you at odd hours, for example late in the night or at dawn, with the intention to force the debtor to make payment, please call your NY bankruptcy attorney now for immediate help.

Another way the debt collection may be improper is when the debt collection agency fails to investigate, (especially where the agency was not the original creditor) whether you, the debtor in fact owed the amount as claimed by the original creditor.

Furthermore, the debt collection agent needs to prove that the original creditor has duly and properly assigned all right, title and interest in the account or debt to it. This will be the basis for pursuing any claim against the debtor. If your debt collector has no proof of assignment of the debt to her, call your NY bankruptcy lawyer now.

The law seeks to protect the most vulnerable members of the society who may feel intimidated just at the sight of a letter signed by a lawyer. In instances where such abusive means is used by a debt collection agency or agent, the court usually protects you by dismissing the complaint of the debt collection agency. Your lawyer can have the court set aside a default judgment which was given in favor of the debt collection agency if you did not have a chance to set aside the debt. Don’t just wait for debt collection agencies to drive you into bankruptcy.

Filing for bankruptcy is not an indication that you are lazy, greedy or morally not upright. This is because a lot of bankruptcies are brought about by medical conditions, divorces and unemployment. Filing for bankruptcy involves a very special decision. Whether you decide to file or not to file for bankruptcy, these are some of the things that you should know.

You should list all the debts that you owe and also remember to list the name of every person that you owe. This list includes people that you believe you do not owe but who think you owe them. This is because the disputed debt may turn out to be an actual debt in fact. If you fail to list a debt, that debt may not be discharged.

You should also never hide properties. You must always give a full disclosure of all your property and financial assets. Trying to hide your property and other assets might get you into trouble. This is because there are a lot of ways in which creditors can find out what you own and what you do not own. Your bank statements, credit card statements, tax returns, insurance policies and even data from your computer can expose you.

Remember that all bankruptcy filings are done under the penalty of perjury. This means that you swear to tell the whole truth concerning your bankruptcy and you should therefore be punished if you fail to tell the truth or the whole truth.

Your best approach in filing for bankruptcy is to truthfully declare all of your assets. Remember, the first and best step to filing for bankruptcy is to see a bankruptcy attorney to explain all your options under the law to you.

The first of these requirements is that the debtor wishing to file must undergo mandatory credit counseling six months prior to filing the petition. The session must be conducted by an approved non-profit counseling agency that oversees budget and credit counseling programs for consumers. Your Westchester bankruptcy lawyer can provide you with a list of approved credit counseling agencies.

During this session, the counselor will discuss the many alternatives to bankruptcy, and will also help design a personalized budget analysis for you. Once you complete the credit counseling session, notify your bankruptcy lawyer in Westchester, who can then start a file for you and commence the six-month countdown to filing.

While you might be ntimidated about having to discuss personal information with a stranger, these approved credit counselors are professionals who aren’t there to judge you, just to help you. Westchester bankruptcy lawyers have found that most agencies offer either private sessions or group sessions, which gives you some options when it comes to both pricing and privacy. And speaking of privacy, some credit counseling agencies even offer sessions via the internet, so you can “attend” the session online in the comfort of your own home.

If you’re thinking of filing bankruptcy, your Westchester bankruptcy lawyer will consult with you about the steps you must take and the timelines you must follow.

Remember, every journey starts with a single step. The road to successfully completing the bankruptcy process begins with credit counseling through an approved agency – the required first step that will start you on the path towards a new financial future and a brighter tomorrow.

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• You have little (if any) money left each month after meeting your monthly expenses
• You struggle to pay the minimum balance on credit cards each month, and often miss payments
• You pay for basic necessities — like gas and groceries – with credit cards, because you have no disposable income to do otherwise
• You’ve maxed out the limits on all or most of your cards
• You’ve borrowed from one credit card to make a payment on another
• You are being hounded by debt collection calls
• Your personal life and relationships are suffering because of your financial situation
• You are overwhelmed with anxiousness, and wonder how you’ll make it through each month
• You’ve contemplated filing for bankruptcy, and have already thought about finding a bankruptcy lawyer in Manhattan to work with