Protection for Wisconsin Residents Who Struggle with Debt
When you find yourself in a desperate financial crisis remind yourself that there are laws in place to protect Wisconsin residents who struggle with debt. When bills have become out of control, you are left feeling overwhelmed and exhausted. The last thing anyone in this situation needs is to be harassed or taken advantage of by banks, creditors, or payday loan lenders. This kind of treatment is unnecessary and unproductive. After all, it’s a creditors attempt to collect money from an empty pocket. Know what the laws are and consult with your attorney if you have any issues.
Are Banks Calling and Harassing You About Unpaid Debt?
A debt collector can call to collect the unpaid debt but the law states how and when this can be done. Creditors, including banks and payday loan lenders have been known to cross the legal line sometimes in order to collect unpaid debt. The state of Wisconsin acknowledges specific laws which exist to protect consumers and to protect debtors after bankruptcy has been finalized. Some of the key laws are noted and briefly explained below…
Key Laws that Protect Wisconsin Residents Who Struggle with Debt:
- The Bankruptcy Abuse Prevention & Consumer Protection Act ,(BAPCPA). This act was passed in 2005 to protect WI consumers and support bankruptcy abuse prevention. Many amendments to the bankruptcy code have been passed since its inception, including a requirement to take a “means test” to determine if a debtor is qualified to file either Chapter 7 or Chapter 13 Bankruptcy. The means test is administered and submitted by a local bankruptcy attorney to determine current monthly income, expenses and eligibility. For example, if the current monthly income is higher than the median income then Chapter 7 cannot be filed safely without abusing bankruptcy laws. Here are a handful of the 2016 bankruptcy code amendments that impacted the Consumer Protection Act: Production of Tax Returns and other documents, the bankruptcy Means Test, limits on Automatic Stay, and more protection for consumers after bankruptcy has been filed.
- The Wisconsin Consumer Act. Sometimes banks or other creditors will carry out behavior which is illegal according to the WI Consumer act. For example, they may try to continue to collect for debt that is no longer the responsibility of the debtor. In the event that this happens to you, is important to have a general understanding of consumer protections such as The Wisconsin Consumer Act.
- The Fair Debt Collection Practices Act. The Federal Trade Commission protects consumers through the Fair Debt Collection Practices Act. This includes the prevention of fraud, deception, or misrepresentation by those entities who wish to collect unpaid bills and loans. This act pertains to household debts, personal debts, and family debt such as medical bills, car loans or credit cards. However, it does not cover debts incurred to run a business
NEED TO FILE A COMPLAINT? Go to The Wisconsin Department of Justice.
If creditors stop calling and harassing you, the silence will be short-lived. This is because without a debt resolution or repayment, the debt continues to exist. If there is a break in the harassment, it may be a good time to tackle your debt issue head on. Your first step should be to speak with an attorney that can relate to your financial situation and can clearly explain you’re your rights. The people you’ll meet at Debt Advisors are bankruptcy experts. They have the experience and know-how to get you out of debt….and the ability to clearly explain and utilize Wisconsin Laws to protect you. Making the call is the single most important thing that you can do right now.