Wednesday, April 25, 2012

Student Loan Debt? Or Why The Fair Debt Collection Practices Act May Be The Best Friend You've Ever Had

THE FAIR DEBT COLLECTION PRACTICES ACT COULD BE THE BEST FRIEND YOU'VE EVER HAD IF YOU WANT TO STOP HARASSMENT FROM STUDENT LOAN CREDITORS AND THEIR COLLECTION AGENCY HENCHMEN.

WHEN YOUR MIRED IN STUDENT LOAN DEBT, LIKE THE $35,000 A YEAR SOCIAL WORKER WHO'S IN HOCK $100K FOR HER BACHELORS AND MASTERS DEGREE, LIFE PRETTY MUCH SUCKS.

WHEN YOU CAN'T PAY IT BACK YOU CAN'T PAY IT BACK, SO YOUR LEFT WITH ONE OPTION..., STIFF YOUR CREDITORS. OF COURSE THIS IS AN EXTREME ACTION, FRAUGHT WITH RAMIFICATIONS.

SINCE IT IS CURRENTLY IMPOSSIBLE TO LIQUIDATE STUDENT LOAN DEBT VIA BANKRUPTCY IT WILL ONLY BE A MATTER OF TIME BEFORE ANGRY CONSTITUENTS MIRED IN STUDENT LOAN DEBT FORCES THE HAND OF CONGRESS TO MAKE THIS POSSIBLE TO GO BANKRUPT.

FOR PROFIT COLLEGES AND PRIVATE UNIVERSITIES HAVE HAD THEIR TUITIONS SKYROCKET IN THE PAST 2O YEARS. ATTENDING THESE INSTITUTIONS IS IMPOSSIBLE WITHOUT BORROWING MONEY. IT'S NOT INCONCEIVABLE TO WALK OUT OF A 2 YEAR TRADE SCHOOL OWING $50K IN STUDENT LOAN DEBT.

WELL WHAT HAPPENS WHEN YOU BECOME UNDEREMPLOYED, UNEMPLOYED OR UNDERPAID AND CAN'T KEEP UP WITH YOUR STUDENT LOAN DEBT PAYMENTS? YOUR INSOLVENT, AND YOU CAN'T DISCHARGE YOUR STUDENT LOAN DEBT THROUGH THE BANKRUPTCY COURT? YOU CAN GO ON INCOME BASED REPAYMENT PLAN, GET A FORBEARANCE OR GO BELLY UP. THIS POST IS ABOUT GOING BELLY UP AND USING THE FAIR DEBT COLLECTION PRACTICES ACT TO STOP ALL COLLECTION CALLS AND CORRESPONDENCE.

FIRST YOU MUST UNDERSTAND THE CONSEQUENCES OF THIS ACTION.YOU WILL DESTROY YOUR CREDIT FOR AT LEAST 7 YEARS AND UP TO 14 YEARS. YOU WILL HAVE TO LIVE OFF THE GRID, NO CREDIT CARDS OR IF YOU DO MANAGE TO GET A CREDIT CARD IT WILL BE WITH USURIOUS INTEREST RATES AND MONTHLY FEES. YOU WILL BE UNABLE TO BUY A HOME, GET MORE STUDENT LOANS, PROBABLY HAVE TO FORESTALL MARRIAGE AND RAISING A FAMILY. YOU WILL BE PRETTY MUCH SCREWED. YOU WILL BE UNABLE TO GET APPROVED FOR A LATE MODEL USED CAR AND WILL HAVE TO DEAL WITH CHARACTERS NAMED BIG AL AT VINNIES USED CAR LOT OR JD BYRIDER.

WHEN YOU GO BELLY UP, YOU MUST HAVE A SPINE OF STEEL AS CREDITORS DON'T LIKE NOT GETTING BE REPAID. THEY WILL PULL OUT EVERY TRICK IN THE BOOK TO MANIPULATE YOUR EMOTIONS AND USE EVERY SCAM THEY CAN TO EXTRACT PAYMENT. YOU MUST REALIZE, YOU'LL NEVER GET AN INCOME TAX REFUND AGAIN AS IT WILL BE INTERCEPTED BY TREASURY. IF YOU'RE A VET YOU WILL NOT QUALIFY FOR A VA HOME LOAN IF AN UNPAID STUDENT LOAN IS OUTSTANDING.

IF YOU DECIDE TO GO BELLY UP, HERE'S WHAT YOU HAVE TO DO. DOCUMENT EVERYTHING! PHONE CALLS, LETTERS, EMAILS! GET FULL NAMES AND PHONE NUMBERS OF EVERYONE YOU DEAL WITH, NOTATE DATE, TIME AND ANYTHING RELEVANT TO THE ISSUE AT HAND.

YOU NEED TO WRITE THE CREDITORS AND SEND THE LETTERS CERTIFIED MAIL AND INCLUDE THE FOLLOWING INFORMATION..., YOU ARE INSOLVENT AND ARE UNABLE TO MAKE ANY FURTHER PAYMENTS. THEY WILL NOT LIKE THE IDEA THAT YOU ARE INSOLVENT AND WILL TRY EVERY TRICK TO GET ANY PAYMENT SO THAT THEY CAN KEEP THE LOAN ALIVE. YOUR JOB HERE IS TO KILL THE LOAN PERMANENTLY UNTIL YOU CAN WRANGLE PAYMENT IN FULL. IN YOUR LETTER, TELL THE PEOPLE SERVICING THE LOAN TO CEASE AND DESIST ANY FURTHER CONTACT WITH YOU BY ANY MEANS. BY EXERCISING YOUR RIGHTS UNDER THE FAIR DEBT COLLECTION PRACTICES ACT..., THE COLLECTOR OR GOVERNMENT AGENCIES ARE PROHIBITED FROM CONTACTING YOU ABOUT YOUR DEBT WITH ONE EXCEPTION. THAT EXCEPTION IS IF THEY INTEND TO TAKE FURTHER LEGAL OR ADMINISTRATIVE ACTION AGAINST YOU, THEY MUST DULY NOTIFY YOU.

WHAT WILL THEN OCCUR IS YOUR DELINQUENCY WILL START TO APPEAR ON YOUR CREDIT REPORTS AND THIS DEROGATORY INFORMATION WILL REMAIN ON YOUR CREDIT REPORT FOR 7 YEARS AFTER THE DATE OF LAST PAYMENT ON THE LOAN. FOR EXAMPLE, LET'S SAY YOU DON'T MAKE A PAYMENT FOR 3 YEARS AND YOUR GUILTY CONSCIENCE SAYS, "YOU'VE GOT TO SEND THEM SOMETHING!" AND YOU DO, THIS WILL START THE CLOCK OVER AGAIN, BECAUSE THIS WILL BE REPORTED AS ACTIVITY ON YOUR ACCOUNT AND IS REPORTED ON YOUR CREDIT BUREAU. DON'T DO IT UNLESS YOU ARE IN A POSITION TO MAKE MONTHLY PAYMENTS, THEN YOU CAN "REHABILITATE" THE LOAN AND RESTART BUILDING CREDIT HISTORY BY MAKING REGULAR ON TIME PAYMENTS. SO, THE LESSON HERE IS, IF YOU ARE GOING TO GO BELLY UP, DO NOT MAKE ANY ARRANGEMENTS TO PAY ON THE LOAN FOR SEVEN FULL YEARS. THE LAW IS ALSO ON YOUR SIDE HERE, CREDIT BUREAUS MUST STOP REPORTING NEGATIVE ACCOUNTS AFTER 7 YEARS FROM THE DATE OF LAST ACTIVITY MEANING 7 YEARS AFTER YOUR LAST PAYMENT! ONLY THEN, DOES THE PASSAGE OF TIME FORCE THE CREDIT BUREAUS FROM REPORTING YOUR STUDENT LOAN AS DELINQUENT.

THE LEGAL AND ADMINISTRATIVE ACTIONS ARE THESE. SUING YOU IN COURT TO OBTAIN A JUDGEMENT. SINCE YOU HAVE NO DEFENSE OTHER THAN YOU'RE BROKE THEY WILL WIN. THE JUDGEMENT IS THEN RECORDED IN THE COUNTY COURTHOUSE AND WILL BE REPORTED TO ALL CREDIT RATING AGENCIES AND IS PART OF THE PUBLIC RECORD, SO IT WILL BE PICKED UP BY INFORMATION RESELLERS LIKE INTEGRASCAN. THE OTHER OPTION THAT THEY HAVE IS TO INVOLUNTARILY FORCE PAYMENT THROUGH GARNISHMENT. SURE YOU CAN FIGHT THIS TOO BUT YOU WILL LOSE. IF YOU CONTEST THIS ACTION WHICH IS YOUR RIGHT, YOU WILL FACE A KANGAROO COURT OF SELF IMPORTANT, ENTITLED BUREAUCRATS. THEY WILL APPROVE WAGE GARNISHMENT AND ORDER YOUR EMPLOYER TO WITHHOLD 15% OF YOUR PAYCHECK FOR THE SOLE PURPOSE OF REPAYING YOUR STUDENT LOAN.

A JUDGEMENT IS MEANINGLESS TO THESE STUDENT LOAN PEOPLE BECAUSE THEY CANNOT COMPEL PAYMENT. IT ONLY MEANS THEY GOT A JUDGE TO AGREE THAT YOU LEGALLY OWE THE MONEY. ONE IMPORTANT NOTE HERE IS THEY CAN SHERIFF SALE YOU HERE. IF YOU HAVE ANY ASSETS THEY CAN GO AFTER THEM - IF YOU HAVE A CAR FREE AND CLEAR OR OWN OTHER TANGIBLE PROPERTY. ALSO, IF YOU OWN A HOUSE THEY CAN PUT A LIEN ON IT AND FORCE SALE IF THEIR IS ENOUGH EQUITY. THE ONLY TIME THEY WILL DO THIS, IS, IF THEY FEEL YOU HAVE ENOUGH ASSETS TO MAKE IT WORTH THE TIME AND EXPENSE OTHERWISE IT WOULD NOT BE COST EFFECTIVE TO GO THIS ROUTE. BE WARNED THAT SOME CREDITORS WILL SHERIFF SALE YOU JUST TO TEACH YOU A LESSON. AS FAR AS A LIEN BEING PUT ON YOUR HOUSE, THE JUDGEMENT MUST BE KEPT ALIVE BY THE CREDITOR TO ENSURE THE LIEN IS VALID AND THIS VARIES BY THE INDIVIDUAL STATE. IF A VALID LIEN IS PLACED ON YOUR HOUSE BY A CREDITOR, BE AWARE THAT WHEN YOU GO TO SELL THE HOUSE ANY LIEN MUST BE SATISFIED BEFORE THE DEED IS TRANSFERRED. ONE WAY OR ANOTHER, THEY ARE GOING TO GET THEIR MONEY.

WAGE GARNISHMENT IS PRETTY MUCH CUT AND DRIED, YOUR EMPLOYER IS LEGALLY REQUIRED TO COMPLY. YOU CAN WIGGLE OUT OF THIS ONE, BY DANCING ON YOUR EMPLOYER AND GETTING A NEW GIG. IT WILL BE MONTHS IF NOT YEARS BEFORE THEY CATCH UP WITH YOU AGAIN!

CASH IS KING! UNCLE BEN FRANKLIN ON THE HUNDRED DOLLAR BILL IS MAN'S BEST FRIEND! YOU CAN'T ARGUE WITH A POCKET FULL OF IRONMEN READY TO DO BUSINESS!

WE GOT TO THIS POINT IN THE US WITH THESE STUDENT LOANS BECAUSE THE POLITICIANS SPEND TRILLIONS ON WARS, PREPARATION FOR WARS AND AN INFLATED MILITARY BUDGET TO PROSECUTE WAR. WE HAVE NEXT GENERATION NUCLEAR WEAPONS, STATE OF THE ART WEAPONS OF MASS DESTRUCTION! F-35 STRIKER JETS THAT COST 125 MILLION A PIECE AND NAVY SHIPS THAT COST A HALF A BILLION TO PRODUCE! THE WAR MENTALITY BROUGHT ON BY A CENTURY OF INTERVENTION IN EUROPE, SOUTH EAST ASIA, ASIA AND THE AMERICAS, TO MAKE THESE COUNTRIES SAFE FOR AMERICAN BUSINESS TO COME IN AND EXPLOIT THEIR RESOURCES AND WEALTH.

UNFORTUNATELY, THE CORPORATE CONGRESS NO LONGER REPRESENT THEIR CONSTITUENTS IN THEIR HOME STATES BUT RATHER THE MONIED INTEREST THAT RULE CORPORATE AMERICA AND RULE THE NATIONS CAPITAL.

THE STUDENT DEBT BUBBLE WILL EXPLODE IN TIME ESPECIALLY WHEN THE UNDER THIRTY CROWD WHO HOLD THE MAJORITY OF THIS DEBT, WISE UP. ONCE THEY REALIZE IT'S NEXT TO IMPOSSIBLE TO MAKE THESE STUDENT LOAN PAYMENTS DUE TO LACK OF ADEQUATE FUNDS TO AMORTIZE THIS DEBT. ONLY WHEN CONGRESS IS FORCED BY THE MILLIONS WHO OWN ONEROUS STUDENT LOAN DEBT, TO REFORM THE BANKRUPTCY LAWS AND ALLOW STUDENT LOAN DEBT TO BE LIQUIDATED IN A CHAPTER 7 BANKRUPTCY.

CREDIT CARD COMPANIES HAVE A CERTAIN PERCENTAGE OF THEIR ACCOUNTS THAT GO BAD. WHEN THEY REPORT THE BAD DEBT TO THE CREDIT IT IMPACTS AN INDIVIDUALS ABILITY TO GET FURTHER CREDIT AS THEY NOW BECOME HIGH RISK. THESE BAD DEBTS ARE EITHER LIQUIDATED IN BANKRUPTCY COURT OR ARE WRITTEN OFF AS BAD DEBT. WITH STUDENT LOANS, WELL, THEY NEVER GO AWAY UNTIL THE DAY YOU DIE. MEANWHILE THE EXECUTIVES WHO RUN THE STUDENT LOAN SERVICING AGENCIES ARE REWARDED WITH BONUSES AND PERKS ALL PAID FOR BY YOU, THE BORROWER.

THE LINK BELOW TO A NEW YORK TIMES OPINION PIECE CALL FOR CONGRESS TO ALLOW LIQUIDATION OF PRIVATE STUDENT LOAN DEBT THROUGH BANKRUPTCY. I AM CALLING FOR ALL STUDENT LOAN DEBT INCLUDING GOVERNMENT BACKED STUDENT LOANS TO BE LIQUIDATED IN BANKRUPTCY! IF YOUR ASSETLESS, PENNYLESS, AND ARE FORCED INTO BANKRUPTCY, THEN WHY THE HELL NOT SHOULD YOU BE ALLOWED TO LIQUIDATE STUDENT LOAN DEBT?

BILLIONS FOR THE WAR MACHINE - ZERO FOR THE CITIZENS! IT'S TIME TO TAKE ACTION AND CONTACT THE MEMBERS OF THE IMPERIAL CONGRESS AND PETITION THEM FOR RELIEF. ONE OF THE BIGGEST SCAMS PERPETRATED ON ITS' OWN PEOPLE IS THIS GOVERNMENTS LACK OF CORE SUPPORT FOR EDUCATION AND THE ENSLAVEMENT OF ITS' BEST AND BRIGHTEST CITIZENS INTO A LIFETIME OF PENURY AND DESTITUTION. THE BASTARDS!