Biggest Debt Collection Agencies – Transworld Systems, Midland Funding, LVNV Funding, Portfolio Recovery Associates, and Nationwide Recovery

The biggest debt collection agencies include Transworld Systems, Midland Funding (aka Midland Credit Management), LVNV Funding, Portfolio Recovery Associates, and Nationwide Recovery. These collection companies control the vast majority of past-due accounts for everything from credit card debts, medical debts, personal loans, and repossessed vehicle debts. They often operate through subsidiaries, such as Resurgent Capital. Debt collection agencies often purchase accounts for pennies on the dollar and then try to collect the full amount.

Debt collection agencies have to comply with government regulations such as the fair debt collection practices act to protect consumers. Thousands of debt collection letters and lawsuits are filed every month. The high volume of this activity can lead to collection agencies making mistakes or violating applicable laws. These violations can lead to a denial of the debt or a separate recovery for the consumer for each violation.

If are you facing harassment, dunning letters, or even a lawsuit or a garnishment from a debt collector, please give our office a call at 706.226.5425. We can assist you in fighting the lawsuit or if there is a bigger financial problem we can help you get a fresh start through a chapter 7 or a chapter 13 bankruptcy case.

Start the New Year debt free with a Fresh Start Bankruptcy

A new year is a perfect time to consider getting a fresh start. Many people are struggling due to the recent economic downturn, the government shutdown, holiday expenses and all of life’s challenges like medical issues, divorce, and job loss.

If you have experienced hardship, are suffering from burdensome debt, and looking for a way out, you may qualify for a debt free fresh start under a chapter 7 bankruptcy. Chapter 7 tends to be a simple straight-forward bankruptcy case that is over in a few months. It is only available to people who meet certain income, asset, and other qualifications. You can also usually retain a car loan or a mortgage that is important to you as long as you are current on the obligation. If you are falling behind, a Chapter 13 bankruptcy case could help you save the car or house.

We help good people through tough times. If you want to take control of your financial future, call 706.226.5425 for a free and confidential consultation with one of our attorneys who can discuss all of your options. We are proud to be designated a debt relief agency and we regularly assist clients with filing bankruptcy or resolving debt issues through other options.

Do you need chapter 7 or chapter 13 bankruptcy?

It is important to understand the differences between chapter 7 and chapter 13 bankruptcy.  While there are ways to retain car loans and mortgages in chapter 7, sometimes the only option for retaining these important arrangements is through a chapter 13 case.

If you are behind on a car loan or a mortgage loan (or both), you can force the lender to give you a chance to payoff the car or catch up the mortgage by a court-approved chapter 13 debt adjustment plan.  Explore our website and read our article on NearSay to understand the differences and for bankruptcy attorney services in Dalton and Whitfield County.

Call us today at 706.226.5425 or through our website for free and confidential consultation about solutions to your financial problems.

Beaulieu Confirms Chapter 11 Plan – Preference Claims Preserved

On May 2, 2018, Beaulieu confirmed a chapter 11 plan.  The plan creates a liquidating trust that will receive all remaining assets and then make distributions to creditors.  Importantly, the court preserved for the benefit of the trust any claims that Beaulieu had to recover money or property.  Beaulieu originally submitted a lengthy list of possibly preferential transfers to creditors and third parties prior to their original bankruptcy filing.

Preferential transfers can be “avoided” (reversed) and the money reclaimed.  It is often very frustrating for creditors, many of which already lost tens of thousands in bankrupt debt, to receive letters from the bankruptcy representatives demanding that money be returned.  There can be defenses available to otherwise valid preference claims.

It is our understanding that the liquidating trustee, PMCM 2, LLC, is now sending out demand letters on preferential transfers.  If you or your company has received a demand letter to return a preference or other transfer, please give us a call – 706.226.5425 – to discuss your options.

Midland Funding Lawsuit

Sued by Midland Funding?  We can help.  Midland Funding, together with Midland Credit Management and Asset Acceptance Capital Corp., form the nation’s largest debt buyer.  They are in the business of buying debts at a large discount and then suing to recover the debt with a profit.  Midland Funding files many lawsuits in the Dalton, Whitfield County courts, the Chatsworth, Murray County courts, and surrounding areas in Georgia.

Midland Funding has a history of some bad behavior with its collection activities that resulted with the Consumer Financial Protection Bureau taking action against them.  The wrongful activities included:

  • Attempted to collect on unsubstantiated or inaccurate debt;
  • Misrepresented their intention to prove debts;
  • Relied on misleading, robo-signed court filings;
  • Sued or threatened to sue consumers on stale debt; and
  • Harassing collection calls.

If you have a lawsuit filed by Midland Funding, Midland Credit Management, or Asset Acceptance, please give us a call – 706.226.5425.  We provide a free and confidential initial consultation to our consumer clients to evaluate whether we can defend the lawsuit, counterclaim for violations of federal or state law, or consider whether a petition for a fresh start with a bankruptcy discharge is right for you.

11th Circuit Makes it More Difficult to Retain Pawned Vehicles in Chapter 13 Bankruptcy

In the recently decided case of Title Max v. Northington, the 11th Circuit unfortunately decided with the title pawn company.  Because the title pawn lender filed a motion for relief and the debtor did not redeem the vehicle in time, the court found that the vehicle rightfully belonged to the title company.  This ruling makes it clear that a bankruptcy attorney must be diligent in protecting their client’s ownership of a title pawned vehicle.

If you are suffering from a high interest title pawn transaction and looking for relief, please call our office for a free and confidential consultation.  We are bankruptcy attorneys located in Dalton, Georgia and we provide professional legal services to all of Northwest Georgia.

Portfolio Recovery Associates Files New Wave of Credit Card Lawsuits

Portfolio Recovery Associates has recently filed a new wave of lawsuits in Whitfield County Magistrate Court.  Often these lawsuits are based upon charged off credit card balances and some are multiple years old.  Portfolio Recovery Associates usually buys these debts for steep discounts.

If you have been sued by Portfolio Recovery Associates, please give us a call.  Under Georgia Law, you only have 30 days to respond to the lawsuit.  You may have valid defenses to the debt or counterclaims under the Fair Debt Collection Practices Act.  In other situations, it may make sense for you to get a fresh start in a Chapter 7 Bankruptcy or have the court approve a debt adjustment plan in a Chapter 13.

Late Filed Taxes in Bankruptcy – 11th Circuit Weighs In

The 11th circuit recently issued an opinion regarding the dischargeability of taxes in bankruptcy when the debtor filed the tax return late.  In Justice vs. U.S., the debtor did not file tax returns on time.  Over a few years, the IRS issued deficiency notices and eventually assessed taxes based upon a substitute return.  The 11th Circuit determined that the tax debt could not be discharged in bankruptcy.  The Court followed the so-called Beard test regarding whether the debtor made an honest attempt at complying with applicable tax law.  Because the debtor filed returns so many years late and only after the IRS made the tax assessment, the Court ruled against the debtor.

If you owe back taxes or are suffering under the heavy hand of the IRS collection process, we may be able to help.  At Hurtt & Johnson, our attorneys have successfully discharged over one million dollars of federal and state tax debts through the bankruptcy courts.  For taxes that cannot be discharged, our attorneys assist clients with halting the government’s collection efforts and approving an affordable repayment plan through the court.  Please call us today to schedule a free and confidential initial consultation to evaluate your options.

Nice Cars Lawsuit

Have you been served with a Nice Cars lawsuit?  As with the wave of cases in the past, local residents who purchased vehicles from Nice Cars or Navigator Auto Sales may have defenses available, such as under the Georgia Motor Vehicle Sales Finance Act and the Uniform Commercial Code.  Many lawsuits on repossessed vehicles are past the applicable statute of limitations.  Sometimes counterclaims can even be lodged for unlawful repossession or malfunctioning automatic car shutdown devices.

A Nice Cars lawsuit involves the allegation of a deficiency balance owing on a repossessed vehicle.  In Georgia, car lenders who repossess a vehicle must follow certain protocol for auctioning the vehicle and pursuing any remaining amounts owed.  Due to high interest rates and low auction values, many former Nice Cars or Navigator car buyers find themselves owing more than the car was originally worth.

At Hurtt & Johnson, we have handled hundreds of deficiency balance claims on repossessed vehicles, many of which involved Nice Cars and Navigator.  If you have been served with a Nice Cars lawsuit on a repossessed vehicle, please call and schedule a free and confidential consultation with our attorneys.

New Bankruptcy Forms Effective 2015

Many official Bankruptcy forms were either replaced or updated on December 1, 2015. While much of the required information is the same, the forms have been substantially revised in both Chapter 7 and Chapter 13 bankruptcy cases.  The updates are part of the continuing forms modernization project that began in 2008.

One of the noteworthy changes is that separate forms are available in personal bankruptcy cases versus business bankruptcy cases.  With such a large increase in the number of possible forms to use, it is as important as ever to hire a competent bankruptcy attorney.

We offer free and confidential consultations and handle bankruptcy matters both large and small for individuals, businesses, and family farmers.