So what happens next? You call them, they say they have your money and you owe the debt and to pay up because they are just going to collect it anyway? Not a chance. Get a lawyer. Do it yourself. Whatever is preferable to you, you need to understand that as cliche as it sounds for a lawyer to say this…YOU HAVE RIGHTS. They can’t just freeze your account without serving you properly in New York City. And guess what? Many of these firms don’t have the documentation at times to back up collecting the actual debt itself. It’s not as if Citibank can call Pressler and Pressler and say “Hey Jeanine Lopez (fictitious name) owes us $2,000. Go collect” It doesnt work that way. Debt collection is heavily regulated, even though in my opinion, most debt collectors do not follow the rules. Having said that, you need to realize that before you listen to the things they tell you, or the rights they claim to have, you have ways of fighting back. You can request something called validation of a debt, which they are required to provide you. You can file an Order to Show Cause with the Court. You can negotiate the sum due. Just make sure you take a step back, speak to someone, and then decide before losing your hard earned money.

http://www.msnbc.msn.com/id/38130515/ns/business-consumer_news/

Let me know your thoughts guys.  Always eager to hear

In the interim, for the weekend, I’ve decided to indulge in a little bit of self promotion and link you to a page on Law.com which features an interview with yours truly about starting up your own law practice.  This article was originally featured in the New York Law Journal.  Let me know what you think.

So I say again that if you’re planning on filing for Bankruptcy, do not go at it alone.  Its dumb.  It doesn’t work in a large percentage of cases I see.  And don’t go to one of those $399 preparation services.  It’s like bringing your taxes to your uncle who taught Math and saying (Do my taxes!).  He doesn’t know how to do your taxes.  They don’t know how to file for Bankruptcy in New York properly.  Finally, Does anyone want to buy a boat?

Look, no one ever thinks they are going to be the ones sitting in a Bankruptcy meeting and having their debts discharged.  Its clearly not a life goal.  But that doesn’t mean that once you are in a situation like this, that you should do everything you can to avoid it, even at your emotional and financial peril.  had clients who weren’t sleeping for months prior to filing.  Clients who refused to use their own checking accounts for fear of having it frozen, or having their wages garnished.  What I’m saying is that Bankruptcy affords you a way out of this financial mess with a very straightforward procedure.  it allows you to restart your financial life, and in all honesty, your entire life, all over again.  So before you fork over your next minimum payment of several hundred dollar to a credit card that you know you’ll never be able to pay Ive off, at least speak to a Bankruptcy attorney as one of your options.

1.  Many people realistically don’t  know if they qualify for the credit:  Many of my clients, but not all, make a nice amount of income and therefore, based on the income limits set forth by the IRS, may not even qualify for this credit to begin with.  However the majority of first time purchasers I have spoken to (and not just my clients) have had absolutely no contact with his/her accountant before proceeding with the purchase to make sure there are no caveats involved in qualifying for this credit.  They just are hoping they qualify.  Nice.

2. An $8000 credit on a $600,000.00 residence is like me enticing you to buy a Mercedes by offering you a free snickers bar and one shoe.  Lets face it, $8000 is $8000 and were in a recession.  But I would base my decision on whether or not to buy now on factors such as the neighborhood, the price of the place, the interest rate you’re receiving, whether or not you see yourself living there for more than 7 years, and/or whether or not the floors are caving in.  Over the life of a loan for a property worth $600,000.00 or even less, $8000 would mean absolutely nothing at all.  Doesn’t matter, people are still offering their first borns for this credit.

3. If you are purchasing a new construction condominium and you haven’t had the place inspected AND you’re rushing forward because you wanted to fit into this 8k credit, then you’re signing a letter absolving me of any responsibility as your attorney.  Look, I’m not a real estate broker, you can go to Trulia.com for that, but lets face it, there are serious legal consequences involved in buying a home, especially if its a new construction.  Half of Park Slope is suing their developers because their windows are falling off.  Williamsburg looks like California after the Gold Rush left town.  The most important thing I tell clients these days is to get their place inspected and to make sure to list the things that need repaired inside the actual contract itself.  If you’re foregoing this crucially important step which can ultimately cost you tens of thousands of dollars down the line because of an 8k credit, then we you have some ‘splainin to do.

At the end of the day what I see, and what I completely empathize with, is that people are very emotional about the places they want to live and purchase.  The ones that are completely unemotional (Ive found something cheap in a decent neighborhood with a low interest rate, low common charges, good condition, and I get this 8k credit) are the ones that may very well come out ahead.

Ive spoken to several New York City Real Estate attorneys last week, who, like me, were burning the midnight oil attempting to get deals done in time for the deadline.  And they all say the same thing:  We’re happy this is finally over.

And finally:  You can now become a fan and follow us on Facebook.

The link is here, but you must be a member to see the article.

We may try to post the piece on our Facebook page.  In the meantime, come on over and become a FAN.  Seriously.  Please.

So you didnt get served but they’re suing you…now what?

Well, this Queens Bankruptcy Attorney would tell you NEVER to call them and leave it at that.  You think a phone call is proof of anything but you having a phone?  Its not.  And don’t send in random letter either (notarized doesnt it make it the end all be all either).  If you’re getting sued by any of these debt collection firms and you don’t think you were ever served with papers then it’s your job to go into court and “answer” the complaint against you, or hire a lawyer (hi!) to do that for you.  New York law has explicit requirements as to how you can be served in these actions.  Believe me, you’re not alone in thinking this suit came out of nowhere.  Thousands upon thousands of people across Queens, and all of New York say that they were never served with any papers but now there are judgments against them.  If they can’t prove they served you, they would have to restart the case all over again, or, in some instances, they could have the suits completely dismissed altogether.

So the lesson of the day is not simply to fight back against these firms by sending certified mailings, but its instead to have proper representation in court and make them prove their case before they start freezing your bank accounts and taking your salary and having it be a complete surprise to you.  The worst thing you can do is nothing at all.