Mississippi Lawyer Blog

The rate of complaints about debt collectors to the Federal Trade Commission has more than tripled since 2003. There were over 300,000 complaints just in the past 5 years!

The top complaints were that debt collectors are demanding and collecting money that people do not owe. They won't accept payments by mail, but demand access to the person's bank account. It should go without saying, but in looking at the number of people that are complying with these debt collector demands - let me say this out loud - Don't ever give anyone your bank account information.

As as a bankruptcy attorney, I talk to people every day that are being abused by the tactics used by debt collectors. These collectors will stop at nothing to collect money whether owed or not, making many people believe they will go to jail if they do not pay immediately. You can go to jail for a lot of things, but not for ordinary debt.

Everyone, from the wealthy down to the hourly worker, wants to own a home. It's the American Dream right?
Until around 15 years ago, if you didn't have money for a down payment and pretty good credit, it was almost impossible to get a mortgage. Then things started changing. Banks started approving mortgages for more and more people. Suddenly everyone could have a home of their own.
But the mortgage companies weren't being kind, they were secretly getting ruthless. They started peddline mortgages with adjustable rates, interest-only payments, and multiple-payment options. Why did they do it? Simple - to make more money.
Maybe you got one of those mortgages. There's nothing wrong with most of them. In fact, they helped millions of people finally step out from under the shadow of a landlord and get a place of their own.
The problem is that no one explained to you exactly what you were getting and what the implications of these loans really were. The loan officers and morgage brokers painted a very rosy picture telling borrowers that they could just refinance in a couple of years. Nobody told you the full story...About how refinancing depended on your home's value going up. About how your adjustable rate loan could go up every single year if you couldn't refinance. About how your principal balance would never go down and your payments could double or even triple.
Didn't the banks know people would fall behind on their mortgages? Didn't they see this coming a mile away?
Absolutely! So why did they push these loans on people? Simple. It was all about money. You see, mortgage banks knew that they could package and sell these mortgages to investors who were hungry for high-risk, big-money deals. And were not talking just about investors in the United States. Much of this investment came from hedge funds filled with money from China, Japan, Saudi Arabia, and a host of other far-flung parts of the world. What's incredible is that one mortgage might be divided up 30 or 40 times; little pieces held by 30 or 40 investors. This is greed in its most basic form.
If you've been watching the news at all the last couple of years, this shouldn't all be new information. So why am I going on about this? To let you know that if you are one of the millions of Americans facing foreclosure (more than likely on property that is no longer worth what it was) or are falling behind on payments not knowing how much longer it will be before the lender forecloses - that there are real ways to fight back and hold on tightly to that house you scrimped and saved for. To let you know that if you own a home in Mississippi and are ready to take control and fight for your home - pick up the phone and call me to discuss a plan of attack.

Mississippi is number one in delinquent mortgages. During the month of October, there were more homeowners behind on their house payments in Mississippi than any other state.
According to the Mortgage Bankers Association there are 4.2 million homeowners across the country that are more than 90 days behind on their house payments or already in foreclosure. This indicates that we are not on the road to recovery like the media would have you believe.
Foreclosures are increasing and mortgage companies are still not willing to help homeowners with modifications. If you want to save the house you cannot sit around and wait for the foreclosure sale. Get your documents together now, meet with a lawyer that does foreclosure defense and bankruptcy and learn what your options are. Get the information now before you need it. Be prepared. Plan ahead. You don't buy car insurance after the wreck. Over and over people come in to meet with me after the foreclosure sale is set trying to find out what to do. In most cases we can still help them and save the house, but they would have been a lot better off meeting with me as soon as they started getting behind.

Debt collectors are tormenting people. But you already knew that. So, what else is new? Well, first of all, they are not supposed to be doing it and second, it is getting worse. Insults, foul language, threats and outright lies are the illegal methods many debt collectors use to frighten and torture people who are having trouble paying their bills.
Times are hard and people in Mississippi are having a harder time paying medical bills and credit cards. Debt collectors are going beyond their normal intimidation and scare tactics to collect debts. The Federal Trade Commission receives more complaints about debt collectors than any other business. This is the number one consumer protection problem in Mississippi.
Debt collectors, even the ones who don't use illegal methods, want a payment from you or a promise to pay. They don't care that you have always paid on time up until this point. They don't care that you are having medical expenses or suffered a job loss or cut in pay. They don't care about any of this. They just want a payment or a promise to pay. If they get a payment they will continue to pressure you for more payments. If they get a promise from you to pay, they will use it against you when you can't pay, calling you a liar or promise breaker and verbally beat you up because you didn't live up to your promise. You don't have to put up with this kind of treatment.
Bankruptcy is one of the strongest group of consumer protection laws we have. Bankruptcy was created to protect you, your family and your property.
Paying your debts is important, but providing for your family is more important.

Lately I have been receiving a lot of calls from people who have been terrified by debt collectors. The collectors pretend to be police officers or make threats to have you arrested today you if you don't send them some money right now. They won't give you an address to mail in money because they want access to your bank account.
Read this carefully - You will not go to jail for an ordinary debt like a credit card, personal loan, internet loan or even a payday loan. Don't believe the tricks and lies of these debt collectors. This is a scam. These are not real police officers or law enforcement organizations. They will try to get you to give them personal information about yourself. Do not give them any information. They may already have information about you and the name of a debt you might actually owe, but they may not have any connection with the original creditor. Even if you do owe the money, it is against the law for for creditors and collectors to make threats or to threaten to have you arrested.

Have you seen all the ads from credit card companies recently talking about the "new" business card option available to individuals? They are sending out over 10 million offers to households for professional credit cards each month according to a study done recently by a D.C.-based consumer-advocacy group! Credit card companies are now marketing these cards because of a loophole in the new regulations - "business" credit cards were excluded from the requirements that were added for consumer protection (like protection from sudden interest-rate hikes, etc) on basic consumer credit cards. Bottom line - consumers don't have protection under these so-called "business" cards! A few Senators have grouped together to urge the Federal Reserve to crack down on the marketing of these "business" cards. Senators are asking the agency to require credit card companies to clearly warn customers. Where there is a regulation, there is a will to find a way around it! Be an educated consumer!

Perfect recent example - Federal regulators' had filed civil claims against the JPMorgan Chase bank - alleging that they basically lied and strong-armed auto loan customers into purchasing a plan that would suspend or cancel their loan payments if they lost their job - problem was - Chase didn't do as promised when people did lose their job! Regulators have now reached a settlement with the JPMorgan Chase bank where the bank will pay a $2 million fine but without admission or denial of wrongdoing. This credit protection product was marketed by the bank in 2008-2009. Chase stopped selling this product in 2009 as well as a similar plan that it sold for home mortgage customers. These plans involved monthly fees (Chase had previously refunded customers $25 million). When you are applying for loans, be cautious of the "additional protection plans" - they often promise anything from death benefits to job loss protection, etc but are riddled with loopholes. Don't be pressured into unnecessary (and often fraudulent) additional "coverage" plans.

So you think you found someone to rescue you from foreclosure?
A mortgage rescue company comes forward and claims to be able to help you save your home and your credit. You probably just signed your house away.

There is an army of scammers and con artists using the Internet, television, radio and the mail who are waiting to take your money and your home. They make claims to be able to save your home, or promise a new loan, or a loan modification.

These scammers guarantee to stop foreclosure or save your home, say they have a high success rate, you won't have to move, and may use names and logos that make them appear to be part of the government or a recognized charity. Paying fees up front for foreclosure rescue services is illegal in most states and a clear sign of a ripoff.

If a company or individual requests any of the following, RUN AWAY FAST!

• Pay fees up front for a modification,


• Tells you to stop making mortgage payments,


• Offers to handle your payments or financial arrangements,


• Wants you to pay for a second opinion on your denied modification


• Sign your house over or put someone else's name on the deed,


• Offer to buy your house and rent it back to you, or a sale leaseback.

If you have any questions about foreclosure, modifications, or saving your home, see your own attorney first and let him assist you or review the paperwork. When you are desperate and vulnerable you are liable to believe anyone and anything and that is when you need to stop and let a lawyer step in and look things over.

Completing a Chapter 13 Bankruptcy can be difficult. Chapter 13 allows you to pay your creditors over a period of 36 to 60 months. The amount that you must pay is different for each case. However, the monthly payment is usually a lot less that what you were paying before bankruptcy.

There are many advantages and tools that can only be used in a Chapter 13. Here is a list of a few of the "tools" that are available and helpful to debtors in a Chapter 13. This is not everything since each person's needs and circumstances are different.

1. Peace and Quiet: Stops creditor calls and harassment.
2. High Interest or Overvalued Vehicles: You only pay the current value on any vehicle purchased at least 2.5 years prior to the bankruptcy filing.
3. Stop Foreclosure: Keep your home and start back making your current house payment as well as a small additional payment to catch up the mortgage over 3 to 5 years.
4. Get Rid of A Second Mortgage: Another benefit of a Mississippi Chapter 13 is the ability to get rid of your second mortgage if your home is worth less than what you owe on your first mortgage.
5. Child Support or Alimony: Chapter 13 allows you to catch up child support or alimony support obligations over a longer period of time.
6. Co-signers are protected: Anyone who is a co-signor or co-debtor on one of your debts is protected from the creditors when you file bankruptcy.
7. Income Taxes: Income taxes that are over three years old can be wiped out and newer taxes may be paid out over the 36 to 60 month plan. You can become current on tax debts and emerge from bankruptcy with no debt to the IRS or the State of Mississippi Department of Revenue.
8. You Are Under Court Protection: Creditors are not allowed to call or contact you in any manner or to file lawsuits, foreclosures or garnishments. Any lawsuits, garnishments or foreclosures that have been filed are stopped.
9. Pay Less than you Owe: You usually pay back less than you owe to unsecured creditors. When you receive a discharge at the end of the Chapter 13 bankruptcy, the unsecured debt is wiped out even through it was not paid in full during the repayment plan.
10. Pay back Creditors: You may not consider this an advantage to filing a Chapter 13, but many people do want to pay their creditors at least something.

If you would like an evaluation of your financial situation and your debts, call us today at 601 948-1600 or email frankc@coxwelllaw.com, for a free consultation.

There was a time when filing bankruptcy in Mississippi would have been looked upon with embarrassment and shame. Not anymore. Today Bankruptcy is just another financial tool to help you get back on your feet. If the government didn't want you to be able file, they wouldn't have passed the laws that allow you to discharge your debts and get a fresh start. The concept of Bankruptcy is straight out of the Old Testament and we have had bankruptcy laws in the United States since the 1800's.

The ability to file Bankruptcy is one of the reasons that America is an country with a superior economy. The current Bankruptcy Laws allow consumers with too much debt to start over again and stimulate the economy. If consumers are not given a second chance to spend and save, people would lose jobs and our economy would suffer even more. When citizens are spending, companies grow and our economy does well. Bankruptcy Laws are important because they allow individuals and companies a chance to cut their losses and start over, which in turn stimulates the economy.

The US is officially experiencing the worst house housing depression ever and the second phase is just beginning. It is expected to peak beginning July of this year, continuing through the first half of next year.

Let these statistics sink in for a minute:
• 3 million homes were repossessed between January 2007 and August 2010
• Over 1 million families will be evicted from their homes in 2011
• 72% of the major cities in the US had more foreclosures in 2010 than 2009
• 8 million Americans are at least 1 month behind on their mortgages
• 5 million are at least 2 months behind on their mortgages

The Mississippi counties with highest volume of new foreclosures are (starting with highest) Harrison County, Hinds County, De Soto County, Rankin County, Jackson County, Forrest County, Lee County, Pearl River County, Marshall County, and Madison County.

The volume of people that have been injured by mortgage fraud, predatory lending practices, and mortgage modification schemes is almost unimaginable. At the same time laws are changing and require new strategies for litigation.

Mortgage companies seem determined to take homes by refusing payments, denying modifications or worse promising homeowners a modification while at the same time processing foreclosures, increasing payments, adding fees, and continually threatening foreclosure.

I'm seeing success in my practice by fighting mortgage companies and disputing their mortgage proofs of claim, their documentation practices, application of funds and fees, and many other items. See my prior blog discussion regarding the sloppy record keeping practices of mortgage servicers.

The 14 largest US mortgage servicers have recently agreed to review all foreclosed loans from 2009-2010 and pay back losses in cases that were mishandled - but we don't know how the reviews will work, (if they work at all) and what types of "losses" will lead to payments for homeowners.

I can't express enough the seriousness of the housing situation in Mississippi and the importance of addressing issues with your mortgage company before foreclosure. Call Coxwell & Associates immediately if you are having any problems whatsoever with your mortgage company.

We are in some tough economic times. People in the City of Jackson, Ridgeland, Madison, Clinton, and all throughout Mississippi are suffering economically. Economists are not certain when the U.S. will come out of these tough economic times or when we do if the economy will ever be as robust as it was in the 1990's. Dozens of people who need bankruptcy in Ridgeland, Madison, Clinton, and the City of Jackson call Frank Coxwell every week to help with economic issues. In addition to bankruptcy problems and after bankruptcy has been completed people need good credit in order to purchase items and household goods. Few people can afford to pay cash for all the household products they need.

There are a number of companies advertising on the internet to help "repair a person's credit." These companies often charge large fees and do little to help the person. The simple truth is anyone can repair their credit if they are will to take the time. There are good agencies and groups that can provide advice. The Federal Trade Commission has a very good website. There are also useful links on consumer issues.

The National Associaton of Consumer Advocates is another great resource. This organization can provide advice and suggestions on many areas of consumer law. The best way to start is to get your credit report from all three of the major credit reporting agencies and then follow the helpful tips below. If you run into a stumbling block don't hestitate to call or look around on the internet for more information.

What to do and What not to do:


Many Mississippians have suffered financial hardships that left black marks on their credit reports. Salaries and hours have been cut, jobs lost, illness and medical bills, late payments and foreclosures have all damaged the FICO score. This is the standard most traditional lenders use to determine a person's creditworthiness. The FICO score has a scale that runs from 300 to 850 points. With FICO, the higher the score, the better your credit.

Although time is the best cure for a low score, there are ways to hasten the movement of your score up to a higher number.

What to do.

First, get copies of your credit reports and see what is being reported right now. Each one of the three major credit bureaus-Experian, Equifax and TransUnion, create their own FICO scores from the information they collect about you.

Second, don't get into more credit trouble. Pay your bills on time from now on. Call your creditors and try to negotiate payments that you can keep up with. Make sure you get any new agreements in writing.

Third, use the credit reports to clean up incorrect or outdated information. The bureaus are required to remove any information that they cannot verify. Paying off credit cards will give your credit score the biggest boost. Paying off student loans, car loans, mortgages, and other installment loans won't raise your score that much. See how the ratio of the total amount of debt you have compares to your total available credit. The lower your balance is to the percentage of available credit, the higher your FICO score will be.

Also, each credit bureau will allow you to place a one hundred word statement on your report explaining any hardship or reason for your trouble. This may help explain your misfortune to some lenders or to an employer if you are job seeking, but it won't affect your FICO score.

Fourth, what you are doing now and what you have done most recently has the most powerful effect on your score. That is why it is so important to get back on track and pay your current bills on time. But if you are paying a debt on time but it is not being reported to Experian, Equifax or TransUnion, one of the big three credit bureaus, it is not helping your score. There are methods for reporting these on time payments to the three bureaus, but paying some agency or company to do it for you is not the way.

Consider Joining a Credit Union.

Credit Unions connected with you or your spouse's job may be more willing to work with you. They have better interest rates, and will give you a checking account when no one else will. Many credit unions have special loans to help you rebuild your credit.

Filing Bankruptcy.

If you already have very high balances, late payments, collections and charge offs, filing bankruptcy can actually improve your credit scores. Chapter 7 and Chapter 13 Bankruptcy affect your credit scores in the same way and the damage to your credit score is not as bad as you might think. You might even see a boost in your score. Bankruptcy gives you a clean slate, a fresh start, and will help you get back on your feet again.


Let's Talk About Secured Credit Cards.

A secured credit card, if used correctly, can get your credit score back up quicker, but only if you use it cautiously and deliberately. These cards obligate you to put up money in a savings account which is used as collateral for the card. Your credit limit is usually the amount you put in the savings account. Make sure your payments are reported to the three major credit bureaus and read the small print before signing up for the card. Use the card, but remember what was said earlier about the debt to credit ratio of the card. Visit the web site CardRatings.com for their recommendation on the best secured cards.

What Not To Do.

Offers to Repair Your Credit.

Just assume all of these offers are a scam. There is nothing a company can do that you can't do yourself at little or no cost. Most will dispute all the information on your credit reports, even accurate information, and this can make you look dishonest if you have to dispute inaccurate information. Even when they manage to get bad data off your reports, once the credit bureau validates the account and debts, it will reappear and your score will drop. Federal Law prohibits a credit repair company from charging you any fees up front until they deliver what they promise and since they can't really deliver, you should not have to pay.

Credit Card Offers You Receive in the Mail.

If you have a poor credit history you may receive credit card offers in the mail. These cards are designed to get your attention as a way to rebuild your credit. They have high fees and high interest rates attached to them and there is a good chance they will hurt your credit rather than help it.

Continue reading "HOW TO REPAIR YOUR CREDIT" »

The Jackson City Counsel has voted to put a temporary halt to Payday Loan Companies, Check Cashiers, Pawn Shops, and Titles for Cash businesses. I think this is a good decision. Jackson has the highest concentration of these businesses in Country. I wonder if it has something to do with the poverty and how hard people have to struggle from paycheck to paycheck to get by in Mississippi. At Coxwell & Associates we have handled hundreds of financial cases for people. I know the argument from the small loan companies. They say, "We have to charge more because we are dealing with people with bad credit and they default more." There may be some truth to this statement. But we have seen how many of these companies operate and they prey upon the poor and educationally disadvantaged. The interest rate at the small finance companions is frightening. Then the poor borrowers' are sold several types of insurance that is essentially worthless to a bad deal at best! The cost of the worthless insurance is financed with the loan. After the person has paid down 1/3 of the loan the company has made maximum profit and they then try to loan the consumers more money and sell more insurance. It is a never ending cycle.

In my opinion these Payday Loan companies and Check Cashing companies are even worse. The effective interest rate can be in multiples of 1000's percent above what is borrowed. These companies prey upon the poorly educated and people with the least ability to understand the complexities of the financial markets. And these companies are popping up on every corner. The constitute a blight in my opinion. Cities around Jackson have already put a moratorium on these types of businesses. If we have to have them in our cities then they should be zoned into the light industrial areas like the strip clubs and adult book stores. There are just some things we do not need and these businesses are ones we can do without. If you own one of these businesses then I am sorry if this hurts you feelings. Any business that charges as much for credit as the businesses I have mentioned in this article do not get my goodwill. If you have to use one of these businesses then I encourage you to be very careful. My brother Frank represents people in consumer cases. He has unfortunately had to file bankruptcy for many people who got involved with loans from these companies. Frank has lectured across the nation on debtor creditor issues. If you have a question do not hestitate to call.

In this terrible economic climate many people may have to resort to bankruptcy. it may be the only solution to solve their financial problems. There are two types of bankruptcy that apply to most people. These are called Chapter 7 and Chapter 13. Chapter 7 is a liquidation plan. This allows people to discharge all of their unsecured debt and either give back secured debt or reaffirm the debt. Chapter 13 is named a Wage Earners Plan. Under the term of this bankruptcy the person re-structures their payments over a five (5) plan. There are exceptions to each of these bankruptcy plans. To learn the limitations of each the individual must consult a qualified bankruptcy attorney.

Frank Coxwell is a bankruptcy attorney who works at Coxwell & Associates. Frank is a nationally recognized speaker in the areas of bankruptcy and debtor creditor relations. If you have a bankruptcy question don't hesitate to call and ask Frank for a free consultation.

The United States is currently in a economic downturn of the worst kind. Irresponsible business practices on Wall Street and the predatory, aggressive mortgage practices that put people in mortgages they could not afford are certainly a substantial contributing factor to our economic problems. Predatory lending is a general term that is used to describe irresponsible lending practices, and can take many forms, from mortgages to consumer lending. At Coxwell & Associates we have been actively engaged in representing people who have been the victims of predatory lending. This type of legal work is very hard for several reasons. First, banks and lending institutions have lobbyists and enough money to spend to keep Legislators from passing consumer protection laws. Second, predatory lending often occurs to people in the lower income, and in my experience there is never a great rush or demand to protect or help low income people. Mississippi has traditionally been an agricultural state and in the past power was centered in the land owning class.

There was an article in the paper recently exposing a troublesome form of predatory lending. This lending practice is called reverse mortgages. The reverse mortgage is aggressively promoted to seniors, people over 62 who own a home and have substantial equity. According to the article, seniors can borrow money on their home and they are not required to pay back the money until the die or move out of their house for more than a year. The mortgages have high up from costs and high interest rates. Because no payments are made the interest quickly compounds and can take away a senior's entire equity. One example was of a senior who borrowed about $120,000 and ended up owing $610,000.00. People have the right to dispose of their property but before our seniors are subjected to aggressive reverse mortgages there should be laws to make sure they are fully informed of all the consequences. We don't need another mortgage crises.

Frank coxwell is a member of Coxwell & Associates who focuses on consumer bankruptcy and predatory lending. Frank files hundreds of bankruptcies for people each year. He is a frequent speaker on consumer issues. for a free consultation call 601-948-1600.