The Law Offices of Ronald P. Slates, P.C.
A Proffessional Corporation est 1980

July 2013 Archives

The challenges of Chapter 9 filings for creditors

There has been a great deal of coverage in the media concerning the city of Detroit’s filing for Chapter 9 bankruptcy. Whether this filing will still go forward is yet to be determined. However, one federal judge has already ordered that state’s governor to withdraw the filing because of pensioner concerns.

Businesses purchasing of others debts

Commercial debt collection is already heavily regulated at the federal level with a complex set of rules laid out in the Fair Debt Collections Practices Act (FDCPA).  As we have previously mentioned on this blog, California has implemented additional standards under a recent bill signed by Governor Jerry Brown known as the Fair Debt Buyers Practices Act.

Provisions of California's Fair Debt Buying Practices Act

At the beginning of this month, the California General Assembly passed what is called the Fair Debt Buying Practices Act.  The new bill has a number of requirements that so-called debt buyers must meet before these businesses can begin contacting borrowers.  If enacted into law, the bill would require specific disclosure language that would need to be used when collecting debts, and it would require proof that they are the sole owner of the debt by showing account balances from the time when the debt was purchased.

Debt collectors and the filing of lawsuits

There are complaints that too many lawsuits are being put in place by banks and other creditors seeking a judgment against debtors.  However, the number of lawsuits brought by lending institutions may simply reflect the economy we live in where individuals are not paying back what they owe.