So, let’s say you have a debt consolidation plan in mind but you just can’t get the collection agencies off your back.  This is a problem that Susie Orman or other financial gurus don’t always tell you how to solve.  You need to expand your plan to include a plan that will get the collection agencies to leave you alone long enough for you to get on track.  Hey, you’re a wage earner.  You just need time.

Here’s an important fact.  The Federal Bankruptcy Act, Chapter 8 allows you to file to immediately get the creditor’s off your back.  If your monthly bills exceed your income and your income is earned from a salary or commission, you can file the right paperwork and get immediate relief.

It’s called a Wage Earner Relief Plan and to file it, you need to contact an attorney or get in touch with the US District Court closest to your home.  You want to ask to speak with the person who is in charge of administering the plan.  For the most part, you can expect to see relief within 3 days of filing.  For the relief plan to work, it’ll need to be accepted by the majority of your creditors.  If the majority agrees, than the others must also agree.  What happens is a restraining order is issued to all of your creditors; this will do the following for you (remember, you need to get them off your back before you can initiate a solid debt consolidation plan)

1. Stop the credit agencies or other lenders from contacting or harassing you

2. Stop all legal actions against you that had been started by a creditor.

3. It will also immediately stop the further accumulation of interest fees and larges.

Likewise, you can also see court support in keeping the credit agencies from further reporting bad credit items to your file.  Called, “Injunctive Relief” this is an often effective legal maneuver that can permanently remove bad information from the your report on file and the report that future lenders will look on when setting a debt consolidation rate which has a direct impact on the cost of any consolidation for debt plan.

You’ll like need the services of the attorney (which you should consult before acting on any of this information.  The information on this webpage is not to be considered legal consolidation for debt information. Susie Orman or any other person worth their salt will tell you that.)  Here is how it all works.

If you can show that the information credit agencies are putting in your credit report is not correct or damaging to your character or future credit worthiness (in otherwords, if you can show that I’ll increase your consolidation for debt costs because of unfavorable debt consolidation rates) than you can seek “injunctive Relief” through a court of law.  Once granted, this relief allows a judge to order the credit agencies to immediately stop reporting any damaging information (as defined in the court order) until the court can or investigation can be completed.

You can then use this time to create new credit and improve your situation.  Heavy stuff but important if you’re in the hole.  Remember to seek the advice of a legal professional before initiating any legal action around improving your consolidation for debt objectives.

(Please note that this information is provided for entertainment purposes only and should not be treated as professional advice.  Take your financial advice from the gurus like Susie Orman.  It is always smart to consult with a financial or legal professional before making any financial decisions.)

Tags: debt consolidation, debt relief plan, susie orman, suzy orman

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