Different consumer bankruptcy things happening.
Good Consumer News
The FTC caught another bad guy.
This time, the Federal Trade Commission shut down an operation that collected more than $690,000 in fake debts by threatening consumers with lawsuits or arrests.
They are not the only ones using this scam.
When an individual called the provided number, they were often connected to a debt collector who falsely claimed to be an attorney or be working on behalf of attorneys, the complaint states.
To make these assertions seem legitimate, the FTC notes that the collectors would often possess or claim to possess individuals’ personal information, or claim to be from an unrelated, legitimate small business.
The rep then alleged that the individual was delinquent on a payday loan or other debt and that legal action would be taken.
The reps advised callers that they could settle the action by making a payment over the telephone using a credit or debit card.
In some cases, the complaint states, the collectors would threaten consumers with arrest if they failed to pay an alleged debt immediately.
I just got a check to settle a claim my client had for the same conduct by a different outfit.
Debt collectors only use these tactics because they work.
And there are not enough attorneys doing this work to get relief for abused consumers.
More Good News
The U. S. Supreme Court held that an inherited IRA was not exempt under the federal exemptions.
That was not good.
But a Texas bankruptcy judge has allowed an inherited IRA to be exempted under Texas state law, so, that is good.
So, it depends on what state you live in, what its exemptions are, but you have a chance, whereas there is no chance under the Federal exemptions.
Other Bad Debt Collectors
Debt collecting just does not draw the best people.
The government allows the IRS to hire debt collectors, and guess what? They are abusing consumers!
Well, one of them, at least, according to Stacy Cowley and Jessica Silver-Greenberg in the New York Times.
Raid your 401(k). Ask your boss for a loan, load up on your credit cards, or put up your house as collateral by taking out a second mortgage.
Those are some of the financially risky strategies that Pioneer Credit Recovery suggested to people struggling to pay overdue federal tax debt. The company is one of four debt collection agencies hired by the Internal Revenue Service to chase down late payments on 140,000 accounts with balances of up to $50,000.
The call scripts those agencies are using — obtained by a group of Democratic senators and reviewed by The New York Times — shed light on how the tax agency’s new fleet of private debt collectors extract payments from debtors. On Friday, those senators sent a letter to Pioneer, the I.R.S. and the Treasury Department accusing Pioneer of acting in “clear violation” of the tax code.
You cannot rely on advice from the enemy. When the bad guys call, you need someone on your side.