Virginia Debt Consolidation

Debt Help in Virginia

Whether you face debt problems due to your own negligence or due to unforeseen circumstances, you need a way out. The state of Virginia does not offer a “get out of debt free card, but it does offer a variety of programs you can use to help you manage and control your debt as you work your way out of the problem.

Virginia Credit Counseling and Debt Consolidation

When debt gets out of control, a lack of financial accountability is often the reason. Virginia credit counseling programs offer a measure of education and accountability to those living in Virginia who are struggling with their debt. These companies will offer debt education and a variety of other support services to help you take back control over your finances.

As you look for a company to use, make sure you are not sucked in by claims of companies that look like credit counselors but operate outside of the bounds of the law. To ensure that the company you choose is legally working in Virginia, start your search here: http://www.scc.virginia.gov.

Once you find a credit counselor that you feel comfortable working with, ask them about debt consolidation options that might work for your situation. Debt consolidation allows you to put all of your debts into one loan or mortgage, thus limiting the amount of bills you have to juggle each month and also possibly lowering your interest rate. Make sure you are in control of your finances before you consolidate, or you will be tempted to make your situation worse by adding to your debt.

Virginia Debt Relief Programs

Most Virginia debt relief companies offer similar education and support as what Virginia credit counselors offer. The main difference between the two is that a debt relief program will take an additional stand and work with you to negotiate with your creditors, establish repayment plans, and even take over sending those payments to the creditors. Make sure you read all fine print carefully when signing up for a Virginia debt relief program. Often these companies charge you and take their payment from the check you send each month for them to pass on to your creditors. Make sure you are clearly aware of whatever they will be charging and how the fee is collected.

Virginia Debt Collection Laws

Virginia offers protection to its consumers from the unscrupulous practices of debt collectors by following the Fair Debt Collection Practices Act. This federal law outlines how debt collectors must behave when trying to collect a debt. Keep in mind that these rules only apply to debt collectors or collection agencies, not your creditors.

First, the FDCPA prohibits certain actions. These include:

• Calling at unreasonable times or multiple times to try to annoy.
• Using profane, offensive, or threatening language.
• Threatening physical harm or any criminal action.
• Calling you at work if this is not allowed.
• Calling you directly if you have a lawyer.
• Disclosing the fact that you have a debt to any third parties, with a few exceptions.
• Calling third parties more than once, in most situations. They can call friends or family members to try to get your contact information.
• Sending written correspondence that clearly discloses that you have a debt.
• Intentionally mislead or lie to you.

In addition, debt collectors must disclose who they are working for. They have the right to contact you in writing, over the phone, in person, through a fax, or with a telegram. If they choose to contact you first in any way other than in writing, they must follow up that contact with a letter disclosing the details about your debt and what you can do if you wish to dispute it. If you do dispute the debt, they will need to verify it.

You can stop the calls and visits from a collection agency. Simply contact the agency in writing telling them that you wish them to stop contacting you. Once they receive the letter, they must comply with your request under the laws of the FDCPA. This does not, however, cancel the debt, and you are still responsible to pay what you owe.

The state of Virginia has a statute of limitations in place to protect debtors. If your creditors wish to sue you, they must do so within the time frame outlined in the statue of limitations, which is as follows:

• Oral agreements – Three years
• Open accounts (like credit cards) – Three years
• Written contracts – Five years
• Promissory notes – Five years

In addition to these regulations, the state of Virginia limits debt collectors to an interest rate of six percent. Also, if your creditors are able to garnish your wages, they must not touch the greater of 75 percent of your disposable weekly earnings or 30 times the federal hourly minimum wage.

Virginia Mortgage Assistance

The Virginia Department of Housing and Community Development offers one assistance program to qualified homebuyers. The HOMEownership Down Payment Assistance Program offers support to low to moderate-income homebuyers who need help paying the closing costs and down payment on their property. They can get up to 10 percent of the home’s price to use as a down payment as well as up to $2,500 for closing costs if they qualify for the program.

If you do not qualify for this down payment assistance plan, consider looking into one of the federal government-backed loans. The FHA loan is open to anyone, often with little regard for credit rating, who has the financial wherewithal to repay the loan. The USDA loan program offers a no-money-down loan program to those looking to live in the state’s more rural areas. The VA loan offers a little-money-down home loan to the state’s veterans. All of these loans are easier to get than conventional loans because they have government backing, thus pose less of a risk to the lender.

If you find yourself looking at the future and seeing a foreclosure coming your way, you may be able to stop the train. Start by learning about foreclosure prevention through the Virginia Foreclosure Prevention Task Force at http://www.virginiaforeclosureprevention.com. Always be open and honest with your lender about your situation, and take action as soon as you realize there is a problem for the best chance at finding a solution to your potential foreclosure.

Virginia Debt Assistance Programs

Virginia does not offer any other formal debt assistance programs.