Definition of Uncollectable Debt

If someone does not pay money that they owe, their creditor has few options to collect the money owed. If the debtor does not respond to letters and phone calls, the creditor can sue the debtor. However, if a debt has been listed in a bankruptcy or past the statute of limitations, the debt is legally uncollectible. Statute of Limitations Most states set a statute of limitations on how long a creditor has to file a lawsuit against a debtor....

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Small Business Debt Help

A slow economy and mounting debts doesn't mean a company should rush to close its doors. There is help out there for small companies struggling with debt. Credit Counseling If your company's finances are unsteady, credit counseling is an option that can help get monies spent back on tract. Through this channel, a certified counselor will review your company's finances and give advice on balancing the books. Consolidation Debt consolidation...

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How to Sell Assets to Pay Debts

No one thinks they will end up over their head in debt, yet it is a common occurrence among Americans. Most financial advisors will tell you to pay down your debt with a budget that makes you live below your means and pay it down over time. However, some financial advisors, like Dave Ramsey, recommend selling whatever assets you have that are not required to live to pay your debts as soon as possible. Instructions 1 Identify the items considered "luxury goods," such as art, jewelry, designer clothing, classic cars and high-end electronic...

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How to Handle Collection Agencies Who Call About Someone (Un)related

When collection agencies have trouble tracking down someone who owes money, it is common for the agency to "clutch at straws," and find out whatever they can from whomever they can. They will search public records to find any possible links to the person, whether it is through ex-spouses, or distant relatives, or anything at all. They will then typically call these people and try to get information. In some cases they will even try to pressure...

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How to Measure Debt

Having too much debt can mean not getting approved for a mortgage or paying higher interest rates on credit cards, car notes and other investments. Bottom line: debt can cost you in the long run. That's why it's important to know how much debt you have. There are a few ways to measure your debt. Note that the amount you owe must be measured against your income--the more you make, the more debt you can afford to take on. Instructions 1 Educate...

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Tips on Staying Out of Credit Trouble

Credit cards lure many consumers into financial difficulties, which is compounded by a struggling economy. Avoiding credit trouble allows individuals to live a comfortable lifestyle and alleviates the stress and worry that come with high credit card balances. Living within one's means is essential to avoid credit difficulties that can last for years. Wants Versus Needs Assess the difference between wants and needs. Avoid falling into the trap of needing the latest electronics, toys or other expenses. True needs include shelter, food, heat...

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How to Reduce Debt in Canada

In a culture of consumption and limitless spending it is not surprising that personal debt has soared to an average of $41,740 per person in Canada. Even in the economic downturn, Canadians are continuing to add to their debt and spend money that they do not have. What many Canadians do not realize is that becoming financially stable and reducing personal debt is possible, and will free up funds for retirement, vacations and education. Instructions...

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Fair Credit Billing Act Rights

If you've noticed a billing error on your credit card statement, you may be wondering what your rights are in correcting the situation. Fortunately for consumers, the Fair Credit Billing Act (FCBA) provides specific guidelines for disputing billing errors. The FCBA also protects consumer with regards to truth in lending. Understanding your rights under the FCBA can help to protect your credit rating and ensure that billing disputes are properly resolved....

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Is a Surviving Spouse Responsible for Credit Card Debt in Nevada?

In Nevada, creditors can hold a husband and wife equally responsible for debt acquired during a marriage. This includes credit card debt charged to a card held by only one spouse. Spouses in Nevada, as well as other community property states, should be frank with each other about their debt in order to avoid surprises after death. Handling Debt after Death After someone dies, the executor or administrator of an estate is responsible for paying creditors out of the estate. The executor or administrator will use the funds in the estate, if...

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Enforcement Remedies for Debt

Methods for collecting debts have increased over time. Because of credit friendly laws, such as the Fair Credit Act, creditors have more legal options when a debtor refuses to pay. Ranging from self-made payment arrangements to third-party involvement, debt collection efforts have become less stressful and more successful. Creditors are able to collect outstanding debt through personal contracts, court-awarded judgments, court-awarded liens, and...

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Household Debt Income Ratios

Debt management is an important aspect of a person's financial well-being. There are a number of ratios that individual's can use to ascertain whether or not they have a good handle on the amount of debt that they have acquired. No person has a set amount of debt that is good or bad, but they must be able to manage it without incurring excessive costs and afford it. Consumer Debt Ratio As probably the most widely used debt management ratio,...

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How to Pay Off Medical Debt

Medical debt can accumulate regardless of whether you have insurance or not. Unexpected illness or injury is a major cause of medical debt along with high deductibles and co-pays. Although most medical doctors and hospitals do not report to the credit bureau, if left unpaid medical debt can have a negative impact on your credit score when turned over to a collection agency. Not ignoring medical debt is the key to avoiding long-term financial problems....

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What to Do If You Think You're a Victim of Identity Theft

Identity theft can be one of the most difficult types of theft to overcome. With just a few simple pieces of information, a violator can use your information over and over before you become the least bit suspicious. Not only can immediate fraudulent issues arise, you may find other fraudulent issues years after the actual theft occurred. It is important to be diligent about protecting your information. Still, if you do find that your information is at risk, a few steps will assist you in correcting the issues. Be Proactive The best way...

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How to Convert GB Pounds to Dollars

If you are returning to the United States from a trip to the United Kingdom, or are preparing to take a trip to the United States from the United Kingdom, you need to exchange your currency. In order to convert GB pounds to U.S. dollars, you must exchange your currency at a financial institution or currency exchange specialist. Regardless of where you are in the world, you can find a place to exchange your foreign currency. Instructions 1 Use an online currency converter, such as Coin Mill or XE, which can be found in the Resources section,...

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Definition of Credit Card Relief

When a person takes on unmanageable amounts of debt -- debt that is so large that, were he to attempt to pay it down, he would suffer severe financial consequences -- he may attempt to seek some relief. With debt related to credit cards, this relief can take several forms. A person may seek to settle for paying less than the full amount owed, receive more generous terms on the line of credit, or restructure his payments. Credit Cards Credit cards are essentially a tool that grants individuals access to a line of credit with a financial...

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Approved Debt Consolidation Companies

The U.S. Trustee Program (USTP) oversees the administration of bankruptcy cases and is a part of the Department of Justice. While its main function is to prevent abuse of the bankruptcy system, the Trustee Program has provided a list of approved credit counseling agencies to help consumers regain control of their finances. Some of the approved agencies deal with bankruptcies and counseling only, however, several provide educational resources for anyone interested. American Consumer Credit Counseling American Consumer Credit Counseling (ACCC)...

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Simple Steps to Clean Up Your Credit Rating

You may not think much about your credit rating until the time comes when you need a good score in order to get a new car, house, job, insurance or other important asset. It may take some months, and possibly even years, but you can clean up your credit rating by being more committed to taking care of your financial affairs. Get Your Credit Report Get a copy of your credit report. You are allowed one free copy of your credit report every year (go to annualcreditreport.com). You can also order a credit report for free when you are denied...

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Debt Solutions & Consolidating Credit

When a person is mired in debt, he will generally seek one or more strategies to give himself some financial breathing room. A number of debt solutions are available to individuals, all of which have their advantages and disadvantages. One of the most popular of these is the consolidation of credit, in which the individual trades a number of different debts for a single, larger debt issued by a new creditor. Debt Consolidation Advantages Perhaps the main advantage to consolidating a debt is that it greatly simplifies a person's monthly...

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What Can Be Garnished for Debt?

When a creditor gets a judgment from a court, the creditor can put through a garnishment order against certain assets, to collect the past due debt. A creditor can keep a garnishment in place until a debt is paid in full. Size Your wages from your job can be garnished by a creditor. The amount of the garnishment is usually 25 percent of your disposable income on a weekly basis. Considerations A creditor also can garnish your bank account. When a bank account is garnished, you can deposit money but you cannot withdraw money. ...

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How to Keep the Interest Low on Your Debt

Lenders charge borrowers an interest rate when they borrow money. This represents the borrowers cost of borrowing money for an automobile or home or using credit cards to make purchases. The interest rate a creditor charges you to borrow money will be based on several factors, including your credit history and the current rate of inflation. Taking steps to keep the interest rate related to your borrowing low can represent a savings over the course of the loan or, in the case of credit cards, a reduction in the amount you have to repay. Instructions...

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Help With Consolidating Bills

Consumers who need help with consolidating bills are aware of many companies that promise debt solutions that seem to be good to be true. They may indeed not be true, according to the Federal Trade Commission (FTC.) The FTC has prosecuted over a dozen credit counseling agencies and the IRS has issued a warning to consumers about selecting a debt consolidation company. According to Clear Point, an agency recommended by the Better Business Bureau,...

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How to Activate a Green Dot Prepaid MasterCard Card

Green Dot has been providing consumers with prepaid MasterCards since 1999, according to the company's website. Consumers often purchase Green Dot cards with a specific dollar amount preloaded from a retailer. Once the card is purchased, the consumer registers and activates the card. Green Dot offers two convenient ways to register and activate the card: online and by telephone. After activation, Green Dot mails you a re-loadable Green Dot card....

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What Determines Creditworthiness?

Creditworthiness is a key determining factor in whether you'll get approved for a credit card or financing, and several factors determine if you're creditworthy. Creditors and lenders carefully review applications for loans and credit, and your past habits can positively or negatively affect your approval chances. Credit Scores An applicant's FICO credit score can contribute to a credit rejection or approval. Lenders check credit reports,...

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About Debt Settlement Companies

Debt settlement companies will work with you to reduce the amount of debt you owe. They offer a solution to people who are overwhelmed by debt. Although debt settlement is better than bankruptcy, it will have a negative affect on your credit and may make it difficult to qualify for a new loan for a few years. What They Do A debt settlement company will collect your monthly payments and put them into a savings account. Once you have saved...

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How to Restore Credit That Your Wife Ruined

When your credit history is ruined, it may not always be your fault. If you share a joint credit card account with your spouse--one in which multiple cards are issued--the effects of the account are felt by both partners. If your partner runs up a large debt and misses a payment, the credit card companies will knock down both of your scores. However, in the wake of this disaster, there are a number of ways that individuals can recover. Instructions 1 Review your credit report for errors. The first step in repairing credit is to make sure...

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The Steps to Pay Credit Card Debt

There's nothing inherently wrong with using credit cards, but the convenient spending they allow can lead to unmanageable debt if you're not careful. If you're facing credit card debt that cuts into your family's budget and results in bills that are higher than you can afford, you need to pay off your debt in the right order by using some common sense tactics. Stop Using Credit You'll have a much better chance of paying off your credit card debt in a reasonable amount of time if the balance isn't constantly creeping upward. When you decide...

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Where Can I Get an Anti-Garnishment Letter for My Bank Account?

When a creditor is owed money, they may resort to obtaining a judgment against you and then attempting to collect on the judgment. One way to collect on a judgment is to garnish your bank account. While garnishing a bank account is legal, there are some income sources that are exempt from garnishment as well as state laws that exempt additional funds in many cases. If your bank account has been garnished, you may be able to stop, or lift, the garnishment order. Garnishment Procedure As a general rule, a creditor must file a lawsuit against...

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Things Collection Agencies Cannot Tell You

Collection agencies employ many different methods to collect debts. Under the Fair Debt Collection Practices Act (FDCPA), some of these methods may be illegal. By law, collection agencies are prohibited from making false threats and from falsely representing themselves. They are also prohibited from making false claims about the debt or their intentions to prosecute you for it. If you find that a collection agency is breaking the law, there are steps...

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Statute of Limitations for Collection of a Third-party Debt

Those having trouble with old debt should look into the statute of limitations for debt collection of a third party. While a statute of limitation doesn't prevent a third party from attempting to collect a debt, it does provide you with an affirmative defense in civil court. If your debt is older than the local statute of limitations, you may well welcome a lawsuit, because this will help put the matter to legal rest. State Law There is no federal law on the statute of limitations for the collection of third-party debt. This means that...

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How to Avoid Judgment From Collectors

Judgments are a last effort on the part of credit institutions to collect payment. Judgments can come in the form of court orders or wage garnishments. In many cases debt collection companies will use judgments as a way to frighten debtors into paying. Most of the time judgments can be avoided. Debtors need to keep open communication with their creditors and try to propose a payment plan to help clear the debt. Instructions 1 Make a list of...

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How to Hedge Your Mortgage

In today's market, the interest rate for 30-year fixed mortgages is about 5 percent. Since this rate is near historic lows, many mortgage brokers and financial analysts expect this number to rise over time. If you are worried about increasing interest rates, there are hedging strategies you can take to decrease the financial hit if the interest rate on your mortgage increases. Instructions How to Hedge Your Mortgage 1 The simplest way to hedge...

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How Long Do Deficiency Judgments Remain on Your Credit Report?

A deficiency judgment is a public record that appears within your credit history. Deficiency judgments often occur after a home foreclosure or a vehicle repossession and have a negative effect on your credit score. The Facts When a creditor repossesses property to satisfy a debt, the value of the property may be less than the amount owed to the creditor. When this occurs, a creditor may sue you for the balance. If the creditor wins, a deficiency...

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How to Determine Child Support in Texas

In Texas, the family court determines child support by examining the noncustodial parent's income and expenses. The court requires the parent to pay child support based on how much he makes and how many children he must support. If the court believes the parent is deliberately unemployed, it may require him to pay a greater amount of child support than is standard for his income level. Instructions 1 Calculate your net income. Take 100 percent of your wages and any other income you earn (dividends, self-employment income and rental income)...

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What Happens When You Cash a Bad Check at a Check Cashing Place?

For customers to utilize services at a check-cashing business, they submit an application. Personal information submitted during this application process creates a way for the business to find customers if they pass a bad check, which is a felony. Business owners are finding ways to minimize the hassle of dealing with bad checks. Check Cashing People who frequent check-cashing facilities typically have reasons they cannot deal with banks....

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Does a Satisfied Judgment Hurt My Credit?

Lawsuit judgments are a matter of public record. Credit bureaus regularly search court records and list judgments on credit reports. While a judgment can do serious damage to your credit report, a satisfied judgment is a significant improvement over an unpaid one. Court Judgments When a plaintiff wins a lawsuit, she receives a judgment against the defendant. The judgment is a debt that the defendant is obligated to pay, and the plaintiff to the lawsuit can collect the judgment from the defendant in several different ways. If the defendant...

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Debt Refinancing Information for You

Debt refinancing happens when an individual or a business combines several debts into one single payment to lower overall costs, among other reasons. For example, if you have two loans with an interest repayment rate of 10 percent and two loans with an interest repayment rate of 8 percent, a debt refinancing plan at 7 percent saves money on all the loans. In addition, you'll only need to make one monthly payment, rather than multiple payments. Personal Personal debt refinance -- known as debt consolidation -- helps individuals get out from...

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How to Get Better Mortgage Rates

With all that is going on in the finance world, this may be the right time for you to get better mortgage rates than you have now. What is out there that you are not aware of? Get on your laptop and surf the internet for details. Instructions 1 Can you really get better a mortgage rate than you have now? According to the news, yes, you can. If rates are 2% lower than you have now, why wouldn't you try to pay less. Search online, checking names...

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How to Apply for a Low Income Loan

If you are a low-income consumer struggling with bills and household expenses, you may be able to qualify for a low-income loan. While these loans are not typically considered "conventional" loans, you still can find financing that is financially beneficial. Before filling out applications, though, you must do ample research and carefully consider how much you can afford to spend on a loan payment. Finding lenders, however, is a rather simple process....

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