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Introduction

“In America’s capitalist economy, borrowing can be a path to prosperity . . . borrowing can also be a path to poverty. America’s middle class is under attack. Stagnant wages and alarmingly high levels of consumer debt have created an unsustainable economic reality: many people fund their middle-class status with increasing consumer debt. People are no longer working to build wealth; they are working to pay interest. Quite simply, consumer debt is the new serfdom. Many Americans of all income levels are discovering that their debt burdens are impossible to pay off. Instead of spending money that would stimulate the economy, we are increasingly spending our money to repay what we have already spent. John Maynard Keynes described increased consumer savings during an economic recession as “the paradox of thrift.” When individuals save money, they do not spend it, decreasing demand in the economy and slowing recovery. What we are currently witnessing in middle-class America is the paradox of debt.

Like the stereotypical loan shark from a gangster movie, debt collectors are increasingly aggressive in their pursuit of repayment. Nowhere is this more evident than in our current housing crisis. Home owners are underwater, underemployed, and over leveraged. Home ownership is increasingly becoming a bad investment for many Americans. If there is no equity in your home, you are not building wealth; you are maintaining the property for the bank. People seeking assistance from their mortgage lenders are turned away each and every day. Even home owners who find help discover that the help they receive is simply kicking the can down the road. Servicers offer loan modifications with their left hands while initiating foreclosure proceedings with their right hands. With no end to the housing crisis in sight, and with the economy still struggling under its burden, it seems like financial freedom is nothing but a fever dream.

Nothing could be further from the truth. Powerful consumer defense remedies exist for those who take the time to find them. However, finding useful information about subjects like bankruptcy, foreclosure and other consumer defense issues can be difficult. The goal of this guide is to put a large amount of potent and useful information in one place. Although everyone has the same rights under the law, consumer rights are truly the luxury of the informed. Those who know their rights have very powerful tools at their disposal to prevent creditor harassment, get rid of bad debt, repair their credit, and save their homes and other property. Great effort has been taken to make this guide useful and relevant by providing the reader with a practical foundation. From this foundation, you can begin to exercise your rights.

If you are contemplating filing a bankruptcy, or are facing foreclosure, you need to make an informed decision about your options. If your home is deeply underwater and you are contemplating exiting your property gracefully, this guide can help you. If you want to stop an abusive creditor from harassing you, you have rights. The worst thing that you can do is make a decision based on fear. The economic downturn has affected most Americans; you don’t have to be a victim. You have rights under the law than can improve your bargaining position with your creditors. Don’t let the behavior of creditors and debt collectors intimidate you. Everyone deserves a fresh start, including you.

We hope that you find this guide a useful and reader-friendly resource. Regardless of whom you hire to assist you with your financial affairs, let this guide be your starting point for achieving financial freedom. If you are interviewing an attorney who cannot explain the concepts contained in this guide, you are interviewing an attorney who is probably not the right fit for you. Make sure that you hire the best attorney you can; settling for less likely will lead to headaches in the future.