1. Crisis Mode

2. Homework (Passport page 15)

3. Welcome! When You Are In Crisis Your Four Walls Communicating with Creditors Collections Negotiating Tips The Federal Fair Debt Collection Practive Actof 1977 (FDCPA) Halting Creditor’s Calls Letters to Creditors When Bad Goes To Worse Garnishment Exemptions Avoiding Repossession Workout Options to Avoid Foreclosure Alternatives to Bankruptcy The Downside to Bankruptcy Debts that Are Not Discharged During Bankruptcy Financial Abuse

4. How’s It Going?

5. What Do You Know? (Pre-Test page 4)

6. Let’s Talk About You

7. When Your Are In Crisis Evaluate your condition Evaluate your options Make a plan Avoid repeating Danger zones

8. Your Four Walls ShelterTransportation FoodClothing

9. Making Hard Decisions Which bills first? Split payments?

10. Communicating with Creditors Contact your creditors before they contact you. Tell them you want to pay them, but your first priority during this time of crisis is to feed and shelter your family. Options?

11. Negotiating Tips Communicate with creditors calmly, without making impossible promises. Counter-offer the creditors’ proposal. Learn when to payoff a debt for less than the full amount. ~ This counts as income and will be taxed! Postdated checks may be cashed immediately. Even collection agencies are open to negotiation.

12. Collections No collector may take a bank account or garnish wages without proper and lengthy court action, except in the case of delinquent IRS or student loan dept. All such threats are bluff. You can tell them to please not call you at work. Per the FFDCPA they must respect your request. It is best to do this using certified mail with a return receipt. A collector’s job is not to help your overall situation; their only job is to get your money. Collectors are trained salespeople or telemarketers. –They are typically low paying jobs with high turnover (85%). –They are taught in their training to evoke strong emotion to make you fearful or angry. They cannot harass or threaten you. –Lodge any complaints with the Federal Trade Commission and your state’s Consumer Affairs Division. –Consumer Protection HOTLINE Toll free in Virginia: 1.800.552.9963 Do not tell them to stop calling you. If they continue to be rude, inform them you will talk to them when they calm down, then hang up. Do not use a cease and desist letter except in horrible situations because all negotiations stop and any hope of positive resolution are lost.

13. When Bad Goes to Worse Judgments Repossession Garnishments Foreclosure Levies Bankruptcy

14. Financial Abuse The aim of the financial abuse is to gain power and control in a relationship. Controlling how money is spent Withholding money or giving an allowance Withholding basic living resources Not allowing a partner to work Stealing partners identity Maybe justify behavior as cultural

15. What do you do? Look for help using 2-1-1 Virginia. Evaluate your personal confidence level regarding finances. Gain information about your assets and liabilities. Begin saving money immediately. Seek financial independence.

16. What Have You Learned? (Post-Test page 20)

17. Homework (Passport page 18)

18. Questions?