Collection Agency Recovery

When a job loss, divorce or financial emergency strains the budget, some individuals opt to pay their most relevant debts, such as rent and utilities, and ignore unsecured loan payments, credit card bills and medical bills. Leaving debts unpaid, however, can result in the creditor sending the debt to a collection agency. Function A collection agency either aids the original creditor in collecting the debt or purchases the debt from the original...

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Advantages and Disadvantages of Credit Card Consolidation

Debt consolidation is one strategy for eliminating your credit card debt, and you may see lots of advertisements that suggest consolidation will save you money. However, debt consolidation isn't a one-size-fits-all solution. It's important to evaluate your specific financial situation and spending habits before committing to fighting your debt by taking on even more debt. Definition You may consolidate your credit cards in three different...

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How to Get Rid of College Debt

Most college students do not worry about the amount of debt they accumulate while in school. However, once they graduate the debt payments begin to add up. Student loans are not cleared during a bankruptcy, which means that the only way to get rid of college debt is to pay it off. Setting up a payment plan and putting extra money toward college debt will speed up the process of getting rid of college debt. Instructions 1 List all of your student loan debts and other debts incurred while going to college. List credit card debt accumulated...

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California Laws on Garnishments From a Debt Collector

A creditor or debt collector cannot take it upon himself to garnish your bank account or wages; he must first get a judgment against you for the money you owe. The Internal Revenue Service is exempt from this limitation, but all other creditors have to take certain legal steps before they can garnish your wages or accounts. In California, you have the advantage of state laws that favor debtors a little more than creditors. Earnings California...

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How to Levy Someone's Bank Account

When you lend someone money and that person does not repay the debt, you don't have to accept the loss as a lesson learned. Unpaid creditors, both private and commercial, can petition the court for permission to seize the amount the debtor owes directly from his bank account through a bank levy. Provided the individual's bank account balance meets or exceeds the amount of the debt, the bank will freeze his accounts, withdraw the amount he owes and remit it to you. Instructions 1 Visit the county courthouse in the county where the debtor...

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Legitimate Debt Relief Programs

Every day people find themselves in a financial situation that they feel they cannot get out of because they have large amounts of debt. Whether the cause is due to a misuse of credit cards, an increase in an adjustable mortgage, a health emergency or any other reason it is important to be aware of debt relief programs that are available to consumers. However, it is even more important to choose a reputable debt relief program to fix your financial...

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Legal Issues Involving Overdraft Charges on Checking Accounts

There are many legal issues associated with overdrawing a checking account that consumers should take into consideration. Customers often take advantage of overdraft fee protection. This coverage protects them from fees associated with overdrawing their account. Understanding the laws concerning overdraft charges can protect you from excessive fees. What is Overdraft Protection? Overdraft protection is a financial institution's promise to...

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How to Defend a Warrant in Debt in Virginia

It is not absolutely necessary to be represented by legal counsel when you have to answer to a Warrant in Debt in the state of Virginia. If you know that you owe the amount being requested by the creditor then there is no reason to fight it. Making an appearance in court is not an admission that you owe the money, but not showing up after you have been notified may be assumed to be admission and a judgment will probably be granted. In most cases...

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How to Pay Off Judgements

Most people incur bad debt at some point in their financial life. Sometimes this debt is in the form of judgments, which are debts that a court has mandated that you pay. These judgments show up on your credit report and negatively affect your credit. Paying off judgments will increase your credit score and help you get out of debt. Instructions 1 First, read through your judgment and find out how much money you owe and to whom you owe it. 2 Collect the needed funds, either through your current paycheck or by taking on extra work to...

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Legal Action for Debt

If a consumer owes a debt that he cannot or will not pay, his creditor will use a variety of methods to coerce him to pay what he owes. This can include sending letters to the individual about the debt, calling him on the telephone and making derogatory reports to the credit bureaus. If the debtor still neglects to make a payment on the account, the creditor can opt to take legal action against the consumer. Facts A creditor can file a civil...

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Who Do I Pay If My Credit Debt Has Been Sold?

Debt you incur on credit, such as a home equity line of credit or credit card debt, serves as a liability to you but an asset to your lender. If you do not pay the debt and holding your account is no longer profitable for the creditor, it has the option to sell your credit debt to another company. Creditors typically sell unpaid credit debt to third-party debt collection agencies. Payment After your creditor sells your debt to a collection...

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How to Default & Settle Credit Card Debt

If you're feeling overwhelmed by your monthly debt payments or you feel as if your debt reduction efforts are going nowhere, debt settlement may be an appropriate alternative. While you can choose to hire a debt settlement company, you can also settle debts on your own if you understand the process and the consequences of default. Instructions 1 Make a list of all your creditors, including the account numbers, the outstanding balances, the...

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What Are the Types of Debt?

The two main types of debt are secured and unsecured debt. Secured and unsecured debts are created through either revolving or non-revolving lines of credit. Understanding the difference between these types of debt and lines of credit is extremely important for your financial well-being. Unsecured Debts Unsecured debts are not backed up by any tangible asset such as a house or car, according to the Federal Trade Commission. The most common...

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Consumer Credit Fundamentals

Practicing good credit fundamentals helps avoid excessive debt and other financial problems. No strategy is foolproof, however, as divorce, job loss or illness can lead to financial problems for anyone, no matter how careful they are with credit. People who make a habit of practicing good credit fundamentals arguably have a greater chance of making a successful comeback from financial hardships happening through no fault of their own. With strong...

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What Are the Steps for Wage Garnishment in Illinois?

If you owe money for credit card bills or other unpaid debts, your creditors can file a civil lawsuit against you to get you to pay. Creditors can pursue garnishment of your bank accounts or wages if they win their case. The laws on wage garnishment vary from state to state. In Illinois, wage garnishments or deductions are covered under Article XIII, Part 8 of the Code of Civil Procedure. Summons and Complaint Before a creditor can seek a...

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Debt Settlement Vs. Credit

When you've fallen behind on debt and face endless calls by collections agencies and creditors, it can be hard to try to get a handle on your financial problems. Even the terms involved can be confusing. When dealing with financial issues, you need to be clear of the different between credit and debt, as well as understand what debt settlement is and the impact it has. Credit and Debt Whenever you borrow money from someone, you're using credit. Credit comes in many forms, from traditional loans for buying a home or a car, to lines of credit...

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Can Creditors Garnish Wages for Charge-off Amounts?

Creditors who charge off credit account balances do not forgive the account holder for the debt. They can attempt to collect the debt amount through the court system in accordance with the laws of the account holders state of residence. Federal garnishment laws CCPA Title III dictate the amount of wages that creditors with legal court orders may garnish. Charge-off Definition A charge-off is nothing more than an accounting entry that creditors often make when the balance of a credit account is significantly past due and in default. For...

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Could I Negotiate a Settlement With My Credit Cards?

Credit card debt settlement is an enticing term many companies use to persuade you to hire them. While you can hire someone to try to settle your credit card debt with your creditors, there is no reason you can't obtain a settlement yourself. You should consider talking to a credit counselor or financial adviser before you pursue debt settlement. Settlement Basics When you try to settle a credit card debt, you try to convince your credit...

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Debt Repair Companies

Debt repair companies claim to help you settle your bills for much less than you owe or to fix bad credit by erasing negative information from your TransUnion, Experian and Equifax credit reports. These firms often exaggerate the extent to which they can help you, the Federal Trade Commission warns, or perform no services once they get your money. Credit Repair Credit repair involves disputing negative credit report information. The Fair Credit Reporting Act allows disputes to help you clear up mistakes on your reports. Its amendment, the...

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How to Deal With Bill Collectors That Make Threats

Debt and bill collectors are not supposed to make threats when contacting you to pay a debt. However, some companies will employ abusive tactics in order to frighten you and get a payment. You can take action to stop harassment, inappropriate language and threats. Instructions 1 Familiarize yourself with your rights. According to the Federal Trade Commission (FTC), bill and debt collectors are prohibited from using profane language, issuing threats and other unfair practices. If subject to abuse, remind the collector of unlawful practices...

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Can Credit Card Debt Be Garnished From a Disability Retirement Salary in Connecticut?

If you receive an injury and have to go on disability in Connecticut, you may suffer a significant decrease in income. If you have no other source of funds to pay your bills, you may fall behind in some of your payments. Creditors such as credit card companies may eventually end up suing you for payment if your delinquency becomes significant. Fortunately, Connecticut typically protects disability income from creditors. Collections Process No creditor can simply decide to garnish your wages in Connecticut. The legal process that leads to...

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Does Consolidating Accounts Hurt the FICO Score?

If you're considering consolidation for your debt, you have several options, including consolidation loans, debt management plans and balance transfers. The way you use these tactics is what will have the most impact on your FICO score. Those who are responsible and committed to paying off their debt and keeping it off will see a positive impact on their scores. On the other hand, those who continue to contribute to their debt will spiral further...

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A Guide to Debt Relief

After the economic downturn, many Americans saw their adjustable-rate mortgages ratchet upward or saw the home equity they had planned to use to pay off debt practically disappear. Credit card defaults occurred in record numbers and those Americans affected searched for ways to get some relief. While scores of debt relief agencies sprang up quickly, many were dishonest or could not deliver what they promised. Yet debt relief has always been available...

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How to Dispute a Mailing Address in the Credit Reporting Act

Credit reports contain more than information about your history of credit repayment. They report whether you've been sued or arrested, filed for bankruptcy, and where you have lived. Consumer reports sell your information to creditors, employers, and anyone else who may have cause to know more about your credit background. The federal Fair Credit Reporting Act (FCRA) protects you by promoting the accuracy and privacy of information in the files of the nation's consumer reporting companies. As part of this crusade, FCRA also suggests that consumers...

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Secrets to Become Debt Free and Financially Free

Getting out of debt and having the financial freedom to live the way you want has become the new American dream for a generation that has become addicted to debt. For generations, according to the Bureau of Economic Analysis, Americans saved, reaching a pinnacle in the mid-1970s as families saved at a rate of 14 percent. However, in the time period between 1995 and 2010, the personal savings rate dropped to 3.4 percent as Americans became hooked...

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How Can I Clear Secured Loan Debts?

You can clear secured loan debts by negotiating directly with the lender or through bankruptcy. Secured debts are tied to collateral such as real estate or automobiles. The lender will not release the collateral unless the loan balance is paid. Clearing or settling the secured loan could mean forfeiting the collateral and making an additional payment as well. Voluntary Reposession Some people voluntarily default on secured loans, allowing their home, automobile or other collateral to be taken by the lender. The property is sold at auction...

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How to Dispute Outdated Collections on a Credit Report

Every day, thousands of individuals, attempt to dispute with debt collectors collection accounts that appear on their credit report. Many are not successful because they are not familiar with their rights under the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. Successfully disputing outdated collection accounts can be a challenge; however, if you have the right information to develop your plan and strategy, you can be successful....

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How to Write a Dispute for a Credit Report

Writing a credit dispute letter notifies a credit reporting bureau about an error on an individual's credit report and asks them to correct the mistake. Writing such a letter is important to keep your credit report error-free to improve your odds at better interest rates on loan applications. You can write a dispute letter for a credit report by considering the section of your report that needs corrected and keeping a few points in mind. Instructions...

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Can a Creditor Be Removed From My Credit Bureau Report?

Everyone who has taken out any form of credit, from a line of credit linked to a credit card account to some types of auto insurance, will have a personal credit report. These reports indicate to lenders how creditworthy a borrower is. Maintained by credit reporting bureaus, these reports change constantly as new information is added and older information is removed. Records submitted by a specific creditor cannot be removed without a valid reason. Credit Reports Most information on a person's credit report is reported to the credit reporting...

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The Best Way to Pay & Remove a Charge off

Charged-off accounts show up on your credit report and stay there for seven years, dragging down your credit score and potentially hindering your ability to get new credit. However, what you may not know is that there is a way to legally remove charge-offs from your credit history. And best of all, you can do it on your own, without hiring an expensive credit repair firm. Definition A charge-off is a debt that the lender who originally extended...

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Do-It-Yourself Debt Settlement

If you're feeling overwhelmed and are struggling to keep up with your monthly payments, debt settlement may be your best alternative. Debt settlement allows you to repay some of what you owe to your creditors, stop harassment by debt collectors and avoid bankruptcy. There are a number of companies that advertise debt settlement services, but it is possible to settle your debts yourself. Function Debt settlement allows you to repay less than...

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Does Filing Small Business Bankruptcy Affect Personal Credit?

Filing for small business bankruptcy could affect your personal credit---if you personally guaranteed loans made to the business. Most banks and credit unions lending to small businesses require the owners to personally back the loans by pledging collateral, such as their primary residences, or by adding their signature as a guarantor on the loan. If you are responsible, the bank will expect you to pay the business debt following the bankruptcy. Credit Report Review your credit report to determine if you're personally responsible for the...

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What Does a Credit Counseling Company Do for You?

Consumers feeling a heavy debt load and paying high interest rates may find relief by engaging a credit counseling service rather than filing for bankruptcy. Credit counseling services are not debt settlement solutions or consolidation loans. Rather, these services are often not-for-profit and offer a complete approach to better managing your budget and reducing your debt. Interest Rate Negotiation Once you have enrolled in the plan, the...

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Annual Credit History

Your credit history can change at any time. Creditors and credit bureaus are able to update and delete information as often as they deem necessary. While you are entitled to one free credit report from each consumer bureau annually, you should check your credit more often than once a year. Credit Report Monitoring Credit bureaus are constantly receiving information from both creditors and public records searches. If there is a change in your credit behavior or someone has filed a lawsuit against you, a credit bureau can list this information...

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Can Creditors Take Your Work Check?

If you do not make payments on your debt as they become due, you will likely experience the stress of receiving collection calls and letters from your creditor or a collection agency. However, ignoring a creditor's collection efforts can make your situation worse. Failing to bring your account current or establish a repayment plan with your creditor can force the creditor to take more drastic action, which may include taking a portion of your work check. Legal Authorization To take a portion of your work check for the payment of most debts...

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