- Co-owners can pool their resources and buy bigger properties with a tenancy in common.
- The tenancy in current agreement should cover all issues that could arise.
- Co-owners can take deductions for interest, taxes, depreciation, and other expenses.
Tenancies in common are arrangements in which two or more persons are co-owners of a trusty estate property. This arrangement allows them to be able to invest in property, not as limited partners or as a legal entity, but rather as individual owners. Tenancy in celebrated is an alternative to individual investment in a property. The co-owners in a tenancy in common are owners of a percentage of the entire property, rather than specific units or apartments, and their deeds show only their percentages of ownership. This type of arrangement offers various advantages.
Advantages of Tenancies in Common
The co-owners can combine their resources and therefore have the capacity to purchase properties that they would not be able to purchase individually. Fractional ownership in tenancies in approved offers the possibility of diversifying real estate investments in more than one property, even in different parts of the country.
The co-owners control the property themselves, and do not depend on a third party to manage the property. The income generated by the property, and the expenses incurred in its management are transferred to the co-owners based on their percentages of ownership. The individual co-owners can claim tax deductions for the interest, taxes, depreciation, and other expenses related to the property, according to their percentages of ownership.
The co-owners retain the right to sell their percentages of ownership at any time. Any of the co-owners can sell their share and pay tax on the capital net, or can defer the tax by carrying out an exchange according to section 1031 of the tax code, and reinvesting the proceeds.
A tenancy in common is famous from a joint tenancy in that there is no right of survivorship. The co-owners can choose who will inherit their shares of ownership in the property in the event of their death. The heir becomes a co-owner, together with the original co-owners. On the contrary, in a joint tenancy the ownership share of a co-owner who dies passes to the other co-owners.
Why Not Form a Puny Liability Partnership?
Limited liability partnerships and corporations are legal entities that offer definite advantages compared with fractional ownership arrangements, such as tenancies in common, but for tax purposes, the partners or shareholders in these entities are not considered to be owners of the real property itself, and therefore cannot claim all the tax benefits corresponding to ownership of real property, such as deductions for mortgage interest and property taxes on the real property, and the right to claim an exclusion of up to $250,000 ($500,000 for married taxpayers who file a joint return) of the gain on the sale of a home.
How Do You Form a Tenancy in Common?
In many cases, tenancies in common are formed when the seller of a property or the real estate agent decides to sell the property as a tenancy in approved. In this case, the seller or agent develops the structure and the tenancy in common agreement prior to offering the property for sale on the market. Each buyer has the chance to review and approve the agreement before committing to buy a share of ownership.
In other cases, a buyer or group of buyers establish the structure and the tenancy in common agreement. An individual buyer could bring together a group of relatives or friends, utilize a broker to locate a building, agree on the percentages of ownership, and then work with an attorney to draft the tenancy in common agreement.
What Can Buyers Interested in a Tenancy in Current Do?
When the seller or agent has already prepared a tenancy in common agreement, the buyer should request the advice of an experienced attorney to review the agreement and to address the potential issues that could arise as a result of co-ownership of the property. If there is no agreement and the buyer has a group of persons who are interested in co-ownership, the most efficient and economical contrivance to establish an agreement is for the whole group to contract an attorney to draft a tenancy in accepted agreement specifically adapted for the property and the particular interests of the buyers. Then, each participant can review the agreement with his or her enjoy attorney and accountant and bring their comments before the group for discussion and agreement in order to prepare a final version of the agreement.
The Tenancy in Common Agreement
The tenancy in common agreement should divide the property into “individual” portions and “group” portions, with respect to rights of use and responsibilities for maintenance. It should keep the rules that govern the expend of the property by the co-owners, such as policies regarding pets, noise, parking, furnishing of the apartments or rooms, and procedures for enforcing these rules.
The agreement should include a description of the financial obligations of the co-owners, including initial deposits, reserve accounts, shared mortgage loans, taxes, and responsibilities for the maintenance of common areas and other expenses. There should be a formula for determining the monthly payment that each co-owner must make, and how any adjustments to that amount will be determined.
There should be procedures for holding meetings and making decisions. The way in which the property is to be managed should be described, including how tenants will be charged, and how invoices from vendors, suppliers, and contractors and other expenses will be paid. The agreement should include provisions for regular reports accounting for all expenses incurred and their reimbursement. These provisions should include a definition of what constitutes breach of the obligations of the co-owners, and the actions to be taken, including procedures for resolving conflicts.
The agreement should address the sale of shares of ownership, the approval of prospective new buyers on the part of the group, and the rights of first choice. There should be a policy on the actions to be taken in the event of the death, bankruptcy, or insolvency of any of the co-owners.
The agreement should be sufficiently complete so as to cover all issues that could arise. It should be well organized, and should be drafted in language that is determined and easy to understand, avoiding ambiguity. It should also be sufficiently durable so that it can still apply in cases of changes in the composition and plans of the co-owners, without having to renegotiate the agreement.
Determination of the Shares of Ownership in a Tenancy in Common
In some groups the co-owners will all have equal shares, while in others the shares may be obvious based on the relative value, or the square footage of the areas of the property assigned to each co-owner. Many times, these percentages are used to allocate common expenses, such as insurance, administration, maintenance, and upkeep, among the co-owners.
The percentage of ownership in the overall property does not control the resale prices the co-owners can charge, or the distribution of earnings in the event the entire property is sold. The resale label charged by an individual co-owner depends on that owner and the buyer, and is not determined based on the ownership percentage or an appraisal of the entire property. In the event the entire property is sold, the distribution of the earnings should be based on an appraisal of the market value of each co-owner’s portion, according to the quality and specific aspects of his or her assigned area.
Financing Tenancies in Common
Co-owners who share an apartment building, for example, through a tenancy in common, could share a loan guaranteed by the entire property. The portion of the loan payment that corresponds to each co-owner could be determined on a prorated basis, according to each co-owner’s portion of the original purchase price, less the down payment each co-owner makes; that is, each co-owner’s section of the amount financed. The respective portions of the original lift tag could be based on the relative values of the units assigned to the co-owners, or in some other agreed-upon manner. The co-owners would contribute their shares of the mortgage payment, these amounts would be deposited in a bank account set up for the group, and from this story the payment to the lending institution would be made.
Various banks have introduced programs in which each co-owner can have his or her own loan. These loans are guaranteed by each co-owner’s percentage fraction of ownership in the property. The seller of the property could also grant mortgage loans, with an underlying loan it took out prior to forming the tenancy in common.
In the case of a group loan, it is necessary to control the risk that the breach on the portion of one of the co-owners could adversely affect the other co-owners. In practice, this risk is managed by researching the background and credit score of potential co-owners before allowing them to join the tenancy in common group; requiring a similar evaluation of the new buyer, each time a share of ownership in the tenancy in common is sold; making all loan payments from the group’s bank account rather than having each co-owner do his or her allotment of the payment directly to the bank or other lending institution; and keeping reserve funds that can be used to perform payments until the share of the co-owner who is not meeting his or her payment obligations can be sold.
For a group loan, it is also important that the loan can be assumed, so that a new co-owner can join the rest of the co-owners as a new co-signer of the existing loan, assuming the same obligations the seller of the ownership interest had. It is advisable to have a loan that allows partial assumption.
In the case of individual financing of the ownership shares in a tenancy in current, each co-owner would sign a separate promissory effect, guaranteed only by the corresponding portion of ownership. In the case of non-payment by that co-owner, the lender could foreclose on only the portion corresponding to that co-owner. The lender could then sell that ownership share and a new buyer could gain it. The other co-owners in the tenancy in favorite would not be affected.
Operational Aspects
In a tenancy in common there are certain guidelines to follow in the way in which expenses are distributed among the co-owners, and in the administration of the property.
Real Estate Taxes
The actual property is not legally divided in a tenancy in accepted and true estate taxes are determined based on just one appraised value for the entire property, so the group of owners will receive just one charge for taxes instead of separate accounts for each co-owner.
In the majority of cases, the tax is allocated to the co-owners based on the amount each one paid for their share of ownership. Later, if there are tax increases, it needs to be determined how the additional amount will be allocated, as follows.
If there is a tax increase due to the resale of one of the co-owner’s shares in the tenancy in common, the purchaser of that share should pay the additional amount. The resale by one of the co-owners should not increase the tax burden on the other co-owners.
When the owner of the entire real property decides to sell some shares of ownership in a tenancy in common, but retains a share of ownership in the property, that person’s share of the dependable estate taxes should be based on the appraised value before the sale of shares to the co-owners, which in effect means that his or her tax burden on the overall property will be reduced by the amount of tax allocated to the portion of the property sold, and the purchasers will be responsible for their prorated share of the tax.
When the tax increases due to an increase in the appraised value as a result of some type of improvement, the co-owner who made the improvement should be responsible for the increase in the tax.
When the tax increases due to an increase in the tax rate, or a reappraisal of the value of the entire property, that cannot be assigned to any co-owner in particular, the increase should be allocated to all the co-owners based on the percentages derived from their original purchase prices and any improvements made up until that time.
Individual Expenses and Shared Expenses
When the tenancy in common involves a building, expenses should be separated among individual expenses and shared or well-liked expenses.
Individual expenses correspond to the expenses incurred within the specific units that belong to the owners, for maintenance and improvements, personal property insurance, and utilities, such as electricity and gas that can be measured and charged separately. The owners should pay these expenses individually.
Shared expenses include payments of installments on the mortgage loan, when there is a group loan; insurance that covers the whole building; maintenance and improvements in common areas; administration; shared utilities, such as electricity for lighting in public areas and for elevators; and trash removal. These expenses should be paid through a group bank account, using a system of monthly charges to the co-owners. The co-owners make monthly payments to the group legend based on their percentage of expected common expenses. The use of reserves is approved for financing expenses that are paid semi-annually or annually, such as taxes and insurance, and to cover unforeseen expenses and investments, such as major repairs or the replacement of equipment.
Decision-Making and Administration in a Tenancy in Common
In tenancies in common where there is a small group of co-owners, all decisions could be made based on a vote by the co-owners. Typically, day-to-day decisions are made based on a majority vote, and more important decisions, such as mayor repairs or improvements, or changes in the rights of use or in the distribution of expenses, are made by unanimous vote.
In tenancies in common with a large group of co-owners, it may not always be practical to call a meeting each time a decision needs to be made. So routine operating matters are often handled by administration councils or committees, the members of which are selected by vote. Major decisions would normally require a majority or unanimous vote by all the co-owners, in a special meeting.
Tax Aspects
Tenancies in common allow the co-owners to take advantage of the same tax benefits as an individual owner would have.
Deductions
Co-owners can take a deduction on their individual income tax returns for mortgage interest and taxes on the accurate property, according to their percentage of ownership. If the property is held by a co-owner as an investment or for the production of income, a deduction can also be taken for depreciation and other expenses related to the co-owner’s participation in the property.
Exclusion of Gain on the Sale of a Home
When a co-owner sells a home, such as an apartment or condominium, that forms part of a tenancy in common, the gain on the sale of up to $250,000, or $500,000 for married taxpayers filing a joint return, can be excluded from taxable income, provided the requirements for this exclusion are met. The co-owner must have been the owner of the home and must have lived in the home as his or her principal home for at least two of the last five years.
Capital Gain
When a co-owner sells a share in a tenancy in common that was held for investment or for the production of income, such as rent, the gain on the sale could be subject to a special capital gains tax rate.
Section 1031 Exchange
A co-owner who sells his or her share in the tenancy in common may be able to defer the tax on the derive by reinvesting the proceeds from the sale in the purchase of another real property, in a like-kind exchange according to section 1031 of the Internal Revenue Code.
In general, when property that is dilapidated in a business or held as an investment is exchanged for the same or similar property, according to section 1031 no accept or loss is recognized on the exchange. In finish, the tax is deferred until the replacement property is sold or disposed of. Generally, real properties are considered to be similar, so a share in a tenancy in common, since it is considered to be ownership of real property, could qualify for this treatment. It should be noted however, that real property in the United States and real property located outside the country are not considered to be similar for these effects.
If as part of the exchange, money or goods that are not similar are also received, a earn would be recognized for the money and the value of the other goods received.
When acquiring a share in a tenancy in approved, it is important that it be classified as true property, and not as an interest in a partnership, because piece 1031 specifically excludes partnership interests from the possibility of deferring taxes on an exchange.
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Filed under Partnership Bankruptcy by on Feb 5th, 2012. Comment. 
It is a trend that is likely to continue for the next several months: retailers filing for federal bankruptcy protection. Sharper Image and Lillian Vernon are just two of the latest retail companies seeking bankruptcy protection. According to the International Council of Shopping Centers (ICSC) web site, sales growth for chain stores in January 2008, particularly department stores and luxury stores, was the slowest since 1970. Discount stores like Costco and WalMart saw only modest sales growth.
It is apparent that consumers are cutting back on luxury items and discretionary spending. The ICSC reports that retailers did not see consumers using their Christmas gift cards in January like they had in previous years. According to the ICSC, WalMart executives are seeing customers purchase food with their gift cards, rather than traditional gift items. It appears that many people are hanging on to their gift cards for future needs.
In a January press release by Plunkett Research, Ltd., researchers estimate the total 2007 retail sales in the U.S. were up only by about 3.8%. The sales increases were in grand part a result of higher gasoline prices, deep discounting by retailers during Christmas, and by automobile dealers’ discount incentives offered throughout 2007. The higher fuel prices in 2007 also led to consumers having to pay more for home heating costs and electricity bills and less on discretionary spending.
It is not likely that the retail industry will get the biggest boost from the recently passed economic stimulus package. The ICSC surveyed 1000 people and asked what they intended to do with their $600 or $1200 tax rebates. The ICSC survey results found that 46% said they would consume the money to pay off debts; 28% of the people surveyed said they would put it into savings; only 26% of people surveyed said they would spend it.
Sharper Image and Lillian Vernon are not the only retailers to recently scrutinize bankruptcy protection. Other recent retailer bankruptcies include Wickes Furniture, Fortunoff (jewelry, fine silver, home furnishings), Levitz Furniture, Bombay Co., Scan International, Inc. (furniture), Tweeter Home Entertainment Group, Harvey Electronics, Friedman’s Jewelers, Crescent Jewelers, and Movie Gallery.
The largest bankruptcies filed by retailers since 1980 include: K-Mart (2002), Federated Department Stores (1990), Montgomery Wards (1997), Macy & Co. (1992), Allied Stores (1990), Southland Corporation 7-Eleven (1990), Ames Department Stores (1990), Circle K (1990), Carter Hawley Hale Store (1991), Ames Department Stores – again (2001), Revco (1998).
Sources:
http://www.plunkettresearch.com/AboutUs/News/tabid/376/Default.aspx
http://www.thedeal.com/dealscape/2008/02/sharper_image_lillian_vernon_t.php
http://www.bankruptcyaction.com/USbankstats.htm
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Filed under Partnership Bankruptcy by on Feb 4th, 2012. Comment.
It is no secret that our economy is in a backslide, the financial deficit has caused many things around the U.S. to change. Unfortunately due to the economic state many well known and established business are being threatened to close for bankruptcy and other financial issues. One of which we all know well is Chrysler LLC. It is truly unfortunate the changes that are being made in companies across U.S.
According to the Phoenix Business Journal Chrysler, a favorite car dealership has plans to pick up rid of 789 dealerships in the U.S. This makes for a total of 25% of the companies dealerships and will include 5 in the State of Arizona alone, up to 12 Chrysler dealers will be closing in Washington, eight in the northern area of Texas and 11 in the Kansas City area. It has been said that Chrysler had filed for a Chapter 11 bankruptcy early in April and the closure of these dealers was discussed in the court proceedings. According to Chrysler in their court filing, their dealers we’re not as competitive as some of the other foreign car brands. Chrysler says that on an average they were able to sell 303 vehicles per dealer in the year 2008, which is a 46% drop in their sales from previous years. On the other hand, car brands such as Honda sold an average of 1,200 vehicles per dealer, and Toyota topped that with nearly 1,300 of their vehicles sold per dealer
Sadly the dealers were notified in the A.M. hours through UPS letters if their dealership would be one of the ones to cease open or on the closure list. A list of dealers that are due for closure across the United States can be found at this link. The closing dealerships do have the option to appeal, but because most of them are in a struggle anyway to make ends meet the option may be a fluke.
The trouble with Chrysler closing down so many of its dealers are the number of men and women who will be without jobs and taxes are not paid. It’s hard enough to find a job in this economy and with major companies continuing to go out of business it’s getting harder. Unfortunately until the economy picks encourage up these are the changes that we must face.
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Filed under llc bankruptcy by on Jan 31st, 2012. Comment.
I opened my business in February 2001 with my wife. I applied for a loan through the Limited Business Association and was approved for a guarantee. During the course of the business I opened lines of credit with Fleet bank and the Capital One. StarsDVD, LLC was the first all DVD rental store in Connecticut. Everything was going beautiful till I got divorced. The business suddenly went from a two-person job to a solo gig.
I was working about 80 hours a week and going to school full-time. I made some mistakes here and there, like forgetting to include my salary in the business plan. Money started shrinking from the bank fable and the debt started piling up. Despite filing for a Limited Liability Corporation, the debt was mostly under my name. Creditors often insisted on a waiver or personal guarantee to establish credit.
In 2003 I was faced with a decision to get another loan or finish shop. The DVD market had changed in those two years and the future for the format did not look that promising. I chose to close the doors to StarsDVD, LLC. By that time I was almost a quarter million dollars in debt and I was still a few years before my thirtieth birthday.
I had no choice; it was either a life of indentured servitude or a run through the bankruptcy courts. I got myself a lawyer and was whisked through the whole process rather painlessly. The funny thing is that lawyers want their money before they start the paperwork so I had to borrow that from friends and family to get the ball rolling.
Filing for bankruptcy was by far the smartest financial move I ever made. Credit card companies paint a grim picture of bankruptcy and the years of toiling it will take to get out of that mess. I’m not advocating bankruptcy; everyone shouldn’t consume it. However, if you do file, you are now stuck with the monumental task of building credit from scratch. Here are my five tips for surviving bankruptcy and building credit.
1) First thing you need to do is ensure you have an active checking AND savings account. If you don’t have a debit card you should then apply for one immediately. Having a debit card will solve your immediate problems such as buying airline tickets or renting a car. True you have to have the money in your account but the MasterCard or Visa logo on the debit card can be a godsend in the future.
2) Second thing is to get a secured credit card with a Visa or MasterCard logo. You will net that you are getting credit card offers in the mail. Read these carefully because they are designed to take advantage of people with bad credit. You need to gather a secured credit card. These cards will offer very little available credit after all the fees have been applied. You need to max out this card and then pay the minimum payment for a while. This establishes a new credit history.
3) Don’t ever ever miss a payment again. This is imperative as it takes two years for a missed payment to leave your credit statement. Beg and borrow for the money to make the minimum, don’t miss a payment. Missing a payment after filing bankruptcy essentially will reset your credit rating back to a novel low. Don’t let this happen.
4) Monitor your credit on a monthly basis. TransUnion, Equifax, and Experian all have plans where you can bag monthly reports on your credit. You can get one free report a year but trust me you want the monthly reports. When you get these reports you need to go over them with a fine-toothed comb. Anything that does not look correct needs to be disputed. These credit reporting sites have an online dispute form you can file. Remember you are on the ropes now and fighting for your credit life. Every tiny error counts.
5) Don’t get discouraged. This last step may seem cheesy but you will still have creditors calling you. It will be difficult knowing you can’t even walk into Target or Sears and pick up a $300 line of credit. There is a light at the end of the tunnel but it takes years to get there. Staying positive and looking at the huge narrate is super important.
Filing for bankruptcy is a life-changing event but there can be life after bankruptcy. The whole credit business is based on fear. These multi-billion dollar credit companies give credit out like candy and they specifically target younger audiences in school. By the time you graduate you may have tens of thousands of dollars in student loans and several thousands of dollars in credit card bills. Then you have to get a car and a job to pay those bills. Before you know it you have to work years and years to pay off you debt you incurred in school. It can become a never-ending circle of debt and repayment. This is how the credit card companies get their money.
Employ your credit wisely and always keep an eye on your credit reports.
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Filed under Partnership Bankruptcy by on Jan 29th, 2012. Comment.
- Six major federal credit laws affect creditors’ ability to collect on your debts.
- These credit laws can affect your ability to mitigate your debt.
- Three federal agencies govern creditors’ ability to collect on your debts.
Sorry to disappoint you, but I’m afraid there’s no legal way to prevent creditors from collecting your money; you are both legally and morally liable for your debts. But there are legal ways to mitigate your losses such as Bankruptcy protection under Chapter 7, the Wage Earner Thought filed under Bankruptcy, Chapter 13, and other methods. In the previous article,How to Get Credit I discussed how your ability to receive credit is governed by opinion the credit laws that apply to the credit application approval process. In this article, I would like to discuss some of the laws that govern your creditor’s ability to collect money on the debt owed. The last article in the series, How to Terminate Creditors From Reporting Your Credit, or Not at will discuss the laws that apply to your creditor’s ability to report your credit behavior.
Federal laws that govern your creditor’s ability to accept money on the debt include the following:
1.) The Fair Debt Collection Practices Act of 1978 amends The Consumer Credit Protection Act of 1967, under Title VIII. It states detailed provisions of what does and does not constitute harassment, when collecting on a debt. “Harassment” is not in the search for of the beholder, whether that be the debtor or the creditor. This act doesn’t void the legal agreement of indebtedness, and it does give the creditor a proper to collect on the debt. Contact the Federal Trade Commission in Washington D.C., a federal government agency, which regulates this act, for more information.
2.) The Federal Communications Act of 1934 regulates the telephone airwaves. For more information, see my article on The Federal Communications Act of 1934, entitled How to Stop Collection Calls, or Not.
3.) The Bankruptcy Reform Act of 1979 provides debtors with a financial fresh start by discharging debtors of debt liability. Under Chapter 7, the act does not absolve, or release, the debtor completely from the debt. The creditors receive a proportional share of the debtor’s assets distributed by the courts. The court can also dismiss your bankruptcy claim, if the judge finds that you have enough assets and income to pay back your creditors in full. Chapter 13 enables you to pay back existing debts under court supervision over an extended time period. Secured interest and property exemptions registered under The Homestead Act of 1862 are usually protected assets, under The Bankruptcy Reform Act of 1979. See your attorney, for more information. The Bankruptcy Reform Act of 1979, as it applies to creditors, means that once a debtor gives the creditor information on how to get bear of his attorney, by supplying the creditor with his attorney’s name, his attorney’s telephone number, and the attorney’s area, then all collection and legal procedures must stop. This does not mean that the debtor can use this as a stall tactic. Never retaining the attorney by neglecting to pay the retainer fee will not cause the collection procedures to stop.1
4.) Like The Bankruptcy Reform Act of 1979, the freshly updated Bankruptcy Reform Act signed into law on April 20th, 2005, also provides debtors with a financial fresh start by discharging or releasing, debtors of debt liability. Unlike the 1979 act, The Bankruptcy Reform Act of 2005 requires mandatory credit counseling approved by the courts, and establishes a means test. A means test measures your means, such as income, and assets, against your liabilities, which include types and amount of debts, which is considered in the repayment of your total debt. It also requires domestic support payments be given first priority, and extends the range of debts that are non-dischargeable, debts required to be paid off under the law. It also extends the length of time from 7 to 8 years required to wait until another Chapter 7 bankruptcy filing.2 This act is a very complicated new allotment of legislation. Be sure to consult a helpful attorney for more information before proceeding to file bankruptcy.
5.) The Wage Earner Understanding is a way of dealing with creditors by filing Chapter 13 bankruptcy. Your creditors appear in court and work out a court sponsored plan of repayment. You must be a wage earner to qualify. Many times creditors fail to appear and the courts wipe out the debt. It is reported as “wiped out,” on the debtor’s credit record under WEP, The Wage Earner Plan. As in other bankruptcy cases, property such as your home registered under the Homestead Act of 1862 is usually protected. To be protected, you must register your home before you begin any type of bankruptcy or WEP proceedings.
6.) Title III of The Consumer Protection Act places limits on garnishments. Garnishments are legal attachments by the courts that retract money directly out of your paycheck in order to pay your creditors. These garnishment limits are designed to leave the debtor enough money to live on. However, these restrictions do not apply to bankruptcy court orders, debts due to Federal and Status taxes, child support, or alimony payments. This law prohibits an employer from discharging, or firing, an employee subjected to garnishment for any one indebtedness. This refers to a single debt regardless of the number of levies, or number of times the same creditor garnishes your paycheck for that one debt. The employer may be prosecuted criminally, imprisoned, and/or fined for the offense of discharging an employee subjected to garnishment for any one indebtedness. 1
The enforcement of federal credit laws falls under The Federal Trade Commission, the FTC, which governs finance charge disputes, Truth-In-Lending disputes, and misleading sales statement disputes. The enforcement of federal credit laws also falls under The Federal Communications Commission, which governs collection calls, and the U.S. Department of Labor, Wage and Hour Division, which oversees garnishments.
More information on federal laws can be obtained by contacting The Federal Information Center at 1-800-688-9889. More information on state laws can be obtained by contacting your local state government information center.1
For the introduction, to this series, see article entitled, How to Understand Credit Laws.
ENDNOTES:
1 Credit Operations Manual, Jewelers Financial Services, Inc. Zale Corporation.
2 “Bankruptcy Reform Act-Brief Summary of Important Changes,” © 2005 by Compact Library Publishers, website www.ws5.com/bankruptcy.
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Filed under Corporation Chapter 7 Bankruptcy by on Jan 28th, 2012. Comment.