Can They Go After a Husband's Wages If They Garnish a Wife's Wages?

The extent that a husband's wages can be garnished for a wife's debt or in addition to attachments to the wife's wages depends on the type of debt, where they live and the account terms. Some states prohibit wage garnishment for most unsecured consumer debt, while others allow wage garnishment, liens and bank levies for almost any debt. Regardless of state laws, federal law prohibits garnishment of more than a set amount. Facts Most states that allow wage garnishment limit the attachment to the person named on the account. Additionally,...

Read More

Who is Responsible for Credit Card Debt in Divorce?

When couples divorce, their debt will be divided either by mutual agreement or a judge's decree. Regardless of how the finances are settled in a divorce, creditors may still pursue both spouses for jointly held or community property debt. Joint Debt If a spouse holds a credit card in her name only, she will generally be held responsible for paying off the card by her creditors. However, in community property states, all debts acquired during...

Read More

The Best Way to Repair Credit

Your credit is affected by a number of factors, including the amount of debt you carry in credit cards, loans and balances due. Other factors include your income, number of missed payments and other major financial situations like foreclosures, bankruptcies and repossessions. If you want to rebuild or repair your credit you need to start reducing the amount of money your owe and continue making timely bill payments. Pay Down Credit Car Debt One strategy to repair damaged credit is to pay off credit card balances. This is effective because...

Read More

How to Deal With Collection Agencies Filing Court Papers

A debt collection agency filing court papers against you can result in spending a day in court and having a possible judgment on your credit report. Due to the significant consequences of a judgment on your record (tarnished report for seven years, inability to get loans, higher finance fees), it's imperative to avoid a possible lawsuit and work with collection agencies. Instructions 1 Negotiate before the agency files papers for a court hearing. The judge in your case will side with the collection agency if you legitimately owe the money....

Read More

How to Build Company Credit Not Based on Personal Credit

Building credit in the name of your business allows you to keep your personal credit separate from your business. However, don't expect to build business credit as fast as you built your personal credit. Credit lines for new business accounts are often tiny--sometimes as little as $100--as creditors monitor the progress of your company. As you apply for business credit, never include your Social Security number on the application. Keep everything...

Read More

How to Increase a Credit Limit

One part of improving your credit score is credit availability. This essentially the amount of revolving debt you have outstanding divided by your total credit limit on those accounts. By increasing your credit limit you decrease your credit availability. It is also helpful to have substantial credit lines at your disposal if you invest in real estate or make large purchases. Instructions 1 Call your credit card company and just ask for a higher limit. Often times they will just give it to you if you have a good record of paying on time....

Read More

Ways of Getting Out of Debt

If you accumulate too much debt, you have to find a way to get out of it before the debt becomes overwhelming. There are a number of strategies that you can put into action to help you get out of debt. Some of these methods work better than others. Take some time and review all of the methods to see which ones are the most effective and efficient for your situation. Benefits To get out of debt, the first thing you should do is stop accumulating more debt. If you are using your credit cards, stop immediately. This will keep you from...

Read More

Can a Debt Collector Sue Me in Small Claims Court?

When you face action from a debt collector, the threat of a lawsuit can be intimidating. If you only owe a small amount of money, the debt collector can file a lawsuit against you in small claims court. When this happens, you will have to show up in court to defend yourself. Small Claims Court Small claims court is a system that is administered by the state governments. Every state has a small claims court system and it is used to collect smaller debts. Each state has a dollar limit on what can be included in a lawsuit for small claims....

Read More

How to Make a Plan to Be Debt Free

You've had enough of interest rate changes, monthly maintenance fees and overlimit fees, and you've decided it's time to get a plan to be debt free. Nice job. You're going to join over half of all Americans who have a no credit-card lifestyle. Now that you've resolved to do it, how do you find the debt-free promised land? It's going to take perseverance and patience, but you can take steps to help you down the path to a debt-free life. Instructions...

Read More

Household Debt Vs. Income

All Americans owe some level of debt -- there is no use denying or hiding the fact. How much you owe, though, will impact your financial health and future. According to the website SmartMoney, the average American in her 40s, making between $50,000 and $100,000, owes about $108,000 in household debt. Owing more than that, or having a debt load that eats more of your monthly income than recommended, might be a sign of financial trouble brewing. Simple...

Read More

How to Pay Off Credit Card Companies Fast

Whether you've had pricey hospital stays, accidents or other expenses, it's easy to fall into credit card debt. Although this debt can be small when it first accumulates, it isn't long until it can snowball into a stressful financial situation. Luckily, credit card debt is manageable, and there are numerous solutions to help you accomplish your financial goals. Pay off credit card companies fast and become debt free for good. Instructions 1 Lower your interest rates. Call your credit card companies and ask whether they can do this for you....

Read More

How to Pay a Settlement Difference

A settlement difference is actually a specific amount of money a debtor has agreed to pay to resolve a debt. Credit card companies and other unsecured creditors sometimes settle delinquent debts for less than the full balance. The New York Times reports credit card companies will sometimes settle delinquent accounts for 20 to 70 percent of the balance. A settlement at 20 percent would indicate an 80 percent discount off the balance. That represents the difference in the settlement amount and the balance before negotiations. Debtors can negotiate...

Read More

Can Retirement Accounts Be Used As Collateral?

Trying to use retirement assets as collateral or security for a loan has two major problems. First, the Internal Revenue Service expressly forbids it in the case of IRAs, Roth IRAs and IRA-based retirement plans. Second, lenders are reluctant to lend against retirement plans when much of the plan receives protection against creditors that would make it difficult or even impossible for them to collect the collateral if the loan were not repaid. IRA plans You may not borrow from an IRA or any IRA-based plan, nor may you pledge the IRA as...

Read More

Minnesota Statute of Limitations for Collecting Credit Card Debt

Credit card debt can rack up quickly, forcing a consumer to become delinquent on this debt. But even if you do become delinquent on a credit card account in Minnesota, you won't legally owe the money forever, thanks to the statute of limitations. Types Minnesota recognizes four types of debt for its statute of limitation on debt: open-ended accounts, oral accounts, written accounts and promissory notes. Identification Credit card debt fits under the definition of an open-ended account, because of its revolving nature. These accounts...

Read More

How to Buy a New Computer With Bad Credit

Buying a new computer with bad credit isn't difficult. Financing for new computers is available for bad-credit borrowers. Having a steady income and ability to make the payments may outweigh past credit problems. Considerations Buying a new computer on bad credit means you'll likely receive a high interest rate on the loan or credit card. That means you may spend more on finance charges than you would if you had good credit. Benefits ...

Read More

How to Take on a Parent's Debt

If your parent is aging or in need of financial assistance, you might consider helping her by taking over her debt. In most cases, you are not legally obligated to do so unless the debt is also in your name. However, many children who have the means like to take financial stress out of their parents' lives. Do not overextend yourself financially to take over your parent's debt; help out only as much you can afford. Instructions 1 Have a conversation...

Read More

Information on Paycheck Garnishment

If you fall behind on a debt, one of the worst things you can do is ignore it. A creditor serious about securing payment of a debt will use any means to do so. One avenue they can pursue is the paycheck garnishment. If you understand how garnishment works, you may be able to avoid it. Causes A creditor asks for garnishment of your paycheck to recover money from a debt that you refuse to pay after he has made previous attempts to collect...

Read More

Debt Relief That Doesn't Hurt Your Credit

When getting out of debt is a top priority, you may come across several ways to accomplish this goal. Whether you choose to work with a debt relief company or do it yourself, choosing the method that is best for you depends on several factors, including whether or not your chosen form of debt repayment will hurt your credit. Because improving your credit situation is generally one of the major goals of debt relief, this is an important consideration. Debt Management Program Enrolling in a debt management program with a reputable agency...

Read More

How to Respond to a Credit Card Default in Florida

Defaulting on a credit card in Florida could result in a lawsuit being filed against you. If you are sued, you must respond or face a court judgment and possible garnishment of your wages and bank account. The best solution for a defaulted credit card agreement is to pay it off in full by contacting the credit card company or debt collector. If full payment is not possible, try to work out a payment plan or other solution to end the threat of being sued. Instructions 1 Contact the credit card company to confirm that you have defaulted on...

Read More

The Best Ways to Consolidate Finances

Consolidating finances consists of placing all of your debt in one place. This creates a scenario where payments become smaller, interest rates decrease and overall debt management becomes less cumbersome. However, not all consolidation strategies are created equal. It pays to know the best ways in which to consolidate your debt and the steps to take that will result in the best payment and overall scenario for your long-term financial health. Home Equity One of the most popular ways to consolidate high interest debt and credit card payments...

Read More

Can the Bank Take My IRA Account on a Foreclosure?

If you are having trouble paying your mortgage, you may be worried that your retirement assets are at risk. The specifics vary by state law. A number of states restrict mortgage lenders' ability to collect on assets other than the home itself. Additionally, Congress has granted a good deal of judgment protection to retirement accounts, including individual retirement arrangements. IRAs and Creditor Protection Federal law exempts the first $1 million in IRA assets from the claims of creditors. This is as a result of the Bankruptcy Reform...

Read More

How Does a Debt Crisis Happen?

When a country faces the prospects of being unable to make good on its outstanding debts, this is a debt crisis. The effects of a debt crisis can be severe. It can downgrade the country's credit rating, making it harder to borrow money, and it may force the country may to slash services. A number of factors can cause debt. History Many countries have suffered debt crisis throughout history. In the early 1980s, a number of Latin American countries, which took on a heavy debt burden in the preceding decade to finance infrastructure development,...

Read More

Can a Massachusetts Collector Garnish Wages?

Because pursuing wage garnishment for unpaid debt is expensive and time consuming for collections companies, they typically only use this strategy as a last resort for collection. However, if you allow a debt account to become severely delinquent -- usually, if you miss six or more payments -- a collector may use this strategy to force you to pay your debt. Massachusetts and federal law permit collectors to garnish your wages in certain circumstances. Necessity of Judgment Most collectors must file a lawsuit against you and receive a judgment...

Read More

How to Handle Past Due Medical Bills

If you have uninsured medical bills that are past due, contact the agency that is attempting to collect as soon as possible. Even if you do not have the money to begin paying down the bills, acknowledging the debts and making a good-faith effort to discuss your financial situation may stop the hospital or collection agency from commencing a lawsuit to try to collect on the debt. If you have some disposable income, attempt to make regular payments on the medical bills. Even small monthly payments may be enough for the hospital to remove the delinquent...

Read More

How Do Debt Consolidation Programs Affect Credit?

If your mailbox is brimming with bills for debts that you're unable to repay, there's a chance that debt consolidation programs can help alleviate some of the stress and financial burden associated with out-of-control debt. Make no mistake though, debt consolidation programs can negatively affect credit in some instances, at least in the short term. Definition Debt consolidation programs help consumers struggling to make large, multiple payments...

Read More

Can a Collection Agency Legally Add on Interest in Arizona?

Although it might be difficult to settle an old debt through a collection agency, it is important to remember that they are governed by federal and state laws. These laws often prohibit them from charging debtors various types of fees. The Facts Arizona collection agencies must adhere to the state's laws for financial institutions. Under these laws, collection agencies cannot add on any fees to an individual's debt that were not incurred...

Read More

How to Get Out of the Telecheck System

TeleCheck is a company that provides businesses with a network to protect against check fraud. When you write a check in an establishment that uses TeleCheck for verification, your account information is sent to TeleCheck at the time of purchase. The TeleCheck system verifies your information against its records and makes a decision on whether the transaction is risky to the business. The decision to accept or deny the check ultimately lies with...

Read More

How to Place a Lien on Personal Property in Massachusetts

When you get work done on your home, the contractor can place a mechanic's lien on the property if you do not pay him for the work. In Massachusetts, contractors can take the first step towards placing and enforcing a lien before the work is complete, but most don't because they don't want to alienate customers. In any case, if you don't pay the lien, the contractor can go to court to foreclose on your house. Massachusetts allows architects and designers to place liens on property as well; however, if there is more than one lien on the property,...

Read More

Can a Collection Agency Take My Car?

Facing a collection agency is hard enough, but when the prospect of having your car repossessed looms, you need to know what your rights are. While a creditor is allowed to take your car in certain situations, it can only do so if it has met all legal prerequisites. Talk to an attorney if a creditor is threatening to take your car away or you need legal advice about your debt situation. Secured Transactions When a person's car gets repossessed,...

Read More

How to Consolidate Collection Debts and Garnishments

Outstanding financial obligations, such as collection debts and garnishments, can be consolidated and managed successfully with a debt-consolidation loan. Debt consolidation reduces the number of debts owed and eliminates high interest rates associated with many debts. You can make one monthly payment at a lower interest rate, as opposed to making several payments each month. Several types of loans are available. Home-equity loans usually charge...

Read More

What to Do When You Suspect Fraud on Your Credit?

The convenience of electronic financing has unfortunately ushered in a new threat: credit fraud. The downside of easy money flows through computer systems is the easier access for hackers and petty criminals to this information who use it for personal gain. Victims of credit fraud face a long road of debt disputes and it can take a long time to get their credit score back on track. That is why it is important to take immediate action when there is even a suspicion of credit fraud. Alerting the Bureaus There are three major credit bureaus...

Read More

States That Allow Garnishment of Wages

All states permit wage garnishment for child support, alimony, student loans and to repay state or federal taxes. According to federal law, the maximum allowable amount for garnishment of wages is 25 percent of an employee's weekly disposable earnings. Some states only permit less than 25 percent of an employee's wages for garnishment. North Carolina, South Carolina, Pennsylvania and Texas allow wage garnishments for child support, alimony, student...

Read More

How to Stop a Department of Education Wage Garnishment

If you've taken out student loans from the Department of Education and have missed payments, your loans can go into default. The Department of Education or a private collection agency hired by the department will attempt to contact you to resolve your debt. If the department determines that you're not willing to repay your loans, it may file to have your wages garnished. Before garnishment goes into effect, the department notifies you in writing...

Read More

The Effects of a Judgment on Your Credit Report

Your credit score is sure to drop once a judgment is added to your credit report. A judgment will remain on your credit report for seven years, according to the Federal Trade Commission, and cannot be removed sooner. The only remedy for the judgment is the passage of time, the FTC reports. The judgment will have less impact on your credit as it ages. Credit Score Your credit score is based on the information on your credit report, and your score will drop once the judgment is recorded. How much your score will drop will depend on the other...

Read More

What Is a "Proof of Hardship" Letter for Chase Home Finance?

Chase Home Finance requires "proof of hardship" letters from customers seeking help with their mortgage payments because of financial problems. Some people are unable to pay their mortgage and are at risk of foreclosure due to reasons including illness, divorce or unemployment. The hardship letter is an explanation of the problem backed by proof, such as a job layoff notice, divorce papers or medical bills. Chase uses the letter to help determine if the homeowner is eligible for loan modification. Details People writing a hardship letter...

Read More

Statute of Limitations of Dental Bill

When a person gets dental work done, he agrees to pay the cost of the procedures that he receives from the dentist and his staff. After the procedures have been performed, the person is legally obligated to pay the amount of money that he is billed. If he does not, the dentist or a representative may sue him in court. However, the dentist must sue before the state statute of limitations expires. Medical Bills Medical bills can be considered a type of written contract. This is because before a person receives treatment from the dentist,...

Read More

How to Pay Less on a Collection Agency Notice

Creditors typically have more difficulty collecting old debts than recovering recently defaulted accounts. Most creditors, such as bank and credit card companies, consider a debt uncollectible after 180 days and send the account to a collection agency to recoup a reduced amount. Because collection agencies purchase debts for less than their total value, a collector can offer you a settlement and still make a profit on the account. You do not need...

Read More

How to Stop Your 401(k) Contribution to Pay Off Debt

Many individuals contribute tax-deferred income to their 401(k) retirement account through their job to take advantage of their employer's matching contributed funds. However, if you are trying to pay off debt, you may want to temporarily stop your 401(k) contributions to get some extra cash in your paycheck. Doing so is relatively simple, but there are certain things you need to consider and steps to take. Instructions 1 Visit your human resources department and ask to stop your 401(k) contributions. Each human resources department has...

Read More

Credit Bureau Complaints

Consumers over the age of 18 rely on the ability to obtain credit for vehicles, homes and student loans. Consumers rely on the three consumer reporting agencies to collect and maintain their credit information. When consumers find errors or learn they have been victimized by identity theft, they need the credit reporting agencies s to be responsive in correcting the information. Lack of Access All three consumer reporting agencies (Experian,...

Read More

Fair Credit Collection Act of Pennsylvania

Debtors who live in Pennsylvania are beneficiaries of federal and state laws that protect their rights against abusive bill collectors. While the federal Fair Debt Collections Practices Act (FDCPA) protects consumers against many collection tactics, including late-night and early-morning phone calls and violations of privacy, Pennsylvania's Fair Credit Extension Uniformity Act (FCEUA) offers debtors additional protections. Contact A bill...

Read More