Chapter 13 bankruptcy is one of the best options for many people who have found themselves struggling with debts. If the money you are paying to your bills is not actually bringing down balances because all of the money is going to interest, Chapter 13 may be the way to get out of the financial mess you are in. Filing for bankruptcy protection is also even more important if you find yourself in a situation where your wages are being garnished or where you are being subject to abusive debt collection practices.
There are laws in place which are supposed to protect debtors from abusive debt collection efforts and from wage garnishments which take so much of their income they cannot afford to pay their basic bills. Unfortunately, Human Rights Watch warns courts are not really doing their jobs to protect people who have gotten badly into debt.
How Courts are Failing to Protect Debtors- And Why Bankruptcy May be the Answer
According to a recent report released by Human Rights Watch, courts are failing to protect families who have been caught up in debt buyer lawsuits. HRW has reported some families are bringing home almost none of their paychecks after debt garnishment orders are issued, which leaves them unable to provide basic necessities for their kids and unable to pay the electricity and light bills.
The problem for many families stars when debt buyers pay pennies on the dollar to purchase old debts. The debt buyers then file “hundreds of thousands of lawsuits each year.” The debt buyers sue and debtors may not be aware they are being sued or may not be able to get legal representation to help them.
Matthew & Megna LLC 3406 West Avenue Columbia, SC 29203 Phone 803-799-1700 Fax 803-352-3678
