Can Collection Agencies Collect From Children of the Deceased?

When a person dies owing debts, the debts do not go away. However, in most cases the children of the debtor do not have a legal obligation to pay the debts of a deceased parent. For a person with a recently deceased parent who passed away with debt, it is important to understand the laws regarding these debts in order to deal with debt collectors that may make contact about the parent's debt. Legal Requirements In general, the only person responsible for paying a debt is the person who acquired the debt. For example, a child does not have...

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What Is Debt Mediation?

Consumer debt stands at a collective $2.4 billion as of October 2010, according to the U.S. Federal Reserve. This represents an increase of 1.7 percent from the year previous. Many Americans find themselves over their heads in debt. Fortunately, you have options other than filing for personal bankruptcy. Debt mediation is one way to get yourself back on the road to financial solvency. What is Debt Mediation? Debt mediation allows you to sit down with your creditors and come to a mutually beneficial agreement about how to pay off your debts....

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How to Calculate an APR Interest Rate

To calculate the annual percentage rate, or APR, on a loan, the lender or borrower must know the length of the loan and the number of payments to be made over the period of the loan. Note the amount of each payment. Apply a simple formula to those figures for the APR. Note that on some loans the APR can be lower than the effective interest rate because of compounding. Instructions 1 Use the example of a $100,000 loan for 30 years with payments of $700 a month. Multiply the monthly payment, $700, by the number of monthly payments over the...

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Is Compromised Debt Taxable Income to an Estate?

An estate is the total amount of property owned by an individual. While an estate may be referred to while an individual is still alive and in possession of all of his property, it is a more common legal term when an estate needs to be created for assets after the owner has died, or if the assets pass beyond the owner's control, such as in a bankruptcy. Most of the debts that the individual had, including debts associated with the government, pass on to the estate as well. Compromised Debt Compromised debt is literally debt over which a...

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Next Step for People Who Failed at Debt Consolidation Programs

Debt consolidation may have seemed like the answer to your financial problems when you applied for it, but fighting debt with even more debt may have proved you wrong. By making a firm commitment to paying off your debt, you have the ability to dig yourself out for good. However, it's a matter of reorganizing the entire structure of your spending habits to accommodate larger contributions to reducing debt. Budgeting Many people fail at debt consolidation because of their inability to reduce spending. Think of your budget as a plan for where...

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How to Settle My American Express Credit Card Account

While debt settlement is becoming an increasingly popular way for consumers to eliminate outstanding debt, each credit card issuer handles debt settlement differently. If you have a delinquent account with American Express and are considering approaching the creditor with an offer for debt settlement, there are several steps you must take to ensure your effort is successful. Instructions 1 Contact American Express to verify that the creditor...

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How Much Does an Employee Have to Earn to Garnish Wages?

An employee has to earn at least 30 times the current federal minimum wage in a week before a creditor can garnish his wages. Anything the employee earns over 30 times the federal minimum wage is subject to a maximum 25 percent creditor garnishment. Different garnishment rules apply to federal student loans and past due child support. Garnishment Calculations To calculate whether an employee earns adequate wages for garnishment, multiply the current federal minimum wage by the number 30. This will give you the minimum amount an employee...

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How to Cope With Debt When You Are Laid Off

Strategy is key when you are laid off from your job. You have to figure out ways to pay your bills since you will no longer receive regular paychecks. Sadly, some of your debts may become delinquent as you struggle to pay bills from available funds -- from savings, a severance package, investments or proceeds from selling personal property. Yet, if you make wise decisions with the money you do have, you'll be doing the best you can in your situation....

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Consumer Credit Act of 2005

The Consumer Credit Act of 2005 (H.R. 3492) sought to amend the Truth in Lending Act to prohibit creditors from raising annual interest rates to consumers based on adverse information gathered from credit reports. According to Bankrate, credit card companies could raise interest rates based on late payments to other creditors, regardless of the consumer's payment history with the credit company itself. AT&T Universal Card, Citibank and Capital...

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Can Your Household Items Be Seized for Credit Card Debt?

No credit-card company or collection agency can take your property unless it files and wins a lawsuit against you. While it is possible that a creditor could seize some of your household items to satisfy your debt, it is more likely to go after liquid assets such as your wages and your bank and investment accounts. Unsecured Debt Unsecured debt is not "backed" by your personal property as collateral. Credit-card companies don't automatically have the right to seize your assets if you get behind on your payments, but must successfully sue...

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Can You Legally Remove Items From Your Credit Report?

If you've got negative information on your credit report, known as derogatory items, you may be able to remove them, thanks to the Fair Credit Reporting Act. This act gives you access to a free copy of your credit report and requires that credit reporting agencies provide easy-to-understand instructions to challenge negative information on your report. The Credit Reporting Agencies Three companies collect information about your credit and...

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Salary of a Psychiatrist Assistant

Psychiatric aides, also known as psychiatric assistants, help care for people who suffer from emotional disturbances or mental impairment and are under the treatment of a psychiatrist. For example, they may help the patient eat or bathe. The typical salary earned by such an assistant can vary widely depending on factors such as his place of employment or place of residence, though several general averages emerge on a national level. National Average The typical annual salary earned by a psychiatric assistant rings in at $27,430, according...

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Verification of Employment for Collections

A collection agency benefits from knowing where you work. In the event the company ever files and wins a lawsuit against you, knowing where you work enables the collection agency to serve your employer with a legal order forcing it to garnish your wages for the debt. Collection agency polices differ by company, but debt collectors utilize a variety of methods -- both legal and illegal -- when verifying your employment status. Post-Judgment Interrogation...

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How to Get a Bank Account With Bad Credit History

Opening a bank account with a bad credit history can be difficult. These instructions will help you to open an account--even with a negative credit file. Instructions 1 Obtain a copy of your credit report and correct any inaccuracies in your credit file. A low score can sometimes be the result of errors on your report. 2 Obtain a copy of your ChexSystems report. Some banks do not check credit history--but they will check ChexSystems....

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Medical Debt Recovery

A hospital or physician's office's first attempt at collecting payment for your medical debt is directed to your insurance company. If you do not have insurance or your insurance company doesn't cover the full amount you owe, your healthcare provider will pursue you for payment. Facts A healthcare provider may call you at home or at work and send you written reminders that you have yet to pay your overdue debt. This is often enough to elicit...

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Consumer Credit Debt Solutions

Expensive minimum payments, high interest rates and a lower credit rating are all consequences of debt problems. Paying off debt helps fix a bad financial situation. But if you don't have a lot of extra money in the bank, employing creative methods can help get rid of the debt faster. Saving Up for Purchases Credit cards eliminate the need to plan for purchases. You can simply whip out your plastic and buy anything you want. However, impulsive shopping and high debts go hand-in-hand. Solving debt problems will require restraint and a little...

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Helpful Hints to Control Credit Card Debt

Credit cards fall into the category of "bad debt," or the type of debt that typically has an interest rate above 10 percent, does not offer any tax benefits and will not appreciate in value over time, according to The Motley Fool. These factors make it necessary to control credit card debt as much as possible through drawing up a budget, debt restructuring and careful planning. Drawing Up Budget To even begin to control your credit card debt,...

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How to Pay Off a Home Equity Line of Credit

Home equity lines of credit have become quite popular. You can borrow whenever you need money and deduct the interest on your income taxes. However, this debt can become a burden, especially when the interest rate increases (see Reference 1). Make paying off your home equity line of credit a priority so that your financial future becomes more secure. If you plan carefully and allocate your money properly, you can get out from under this burden of...

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Debt Collection and Legal Rights

Having bills that are in collections is a stressful situation. Not only do you have the stress of not being able to pay your bills, you also have to deal with another group of people that will be contacting you regularly and asking you when you plan to pay, even if you don't owe the bill. The Fair Debt Collection Practices Act (FDCPA) defines the legal rights you have when dealing with debt collectors. Covered Debts The FDCPA applies specifically to debts that are being handled by a third-party collector and not by the original creditor....

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Retirement Garnishment

Garnishment is an involuntary collection process by which a creditor may seize certain forms of income when an individual fails to pay a debt. Most creditors cannot legally garnish debtors without first having a court order allowing them to use garnishment as a debt recovery tool. Facts Some forms of income, such as Social Security benefits and retirement pensions, are immune from garnishment by most creditors. Because the majority of the...

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What Type of Credit Information Would Keep Me From Getting a Job?

Employers are always looking for new ways to better screen job applicants. When resumes, interviews and references are not enough, an employer may look to your credit report to see if you are worthy of a position in the organization. Some job candidates are even finding out that a less than pristine credit history can be the factor that prompts the employer to disregard the application and send a notice of rejection. Money Handling & Monitoring...

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How to Legally Get Out of Debt

A number of people have an excessive amount of consumer debt, including credit cards, lines of credit, automobile loans, home equity loans and mortgages. Having too much debt can be painful and create a life of stress and anxiety. You can, however, get out of debt legally and start all over again with a clean slate. There are several methods you can use---some are faster, more efficient and more effective than others. When you're faced with several debt-reduction plans, choose the one that best helps you achieve your goals and objectives. Instructions...

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How to File for Bankruptcy After a Foreclosure Is Granted

Filing for bankruptcy during a foreclosure process can help you avoid losing your home -- but you must file before the foreclosure has been completed, or granted. Once the foreclosure becomes official, the bank or lender owns the house, and a late bankruptcy filing won't reverse that. Legal website Nolo.com reports that a bankruptcy filing before the foreclosure could immediately stop the foreclosure proceedings, allowing you time to restructure your debt and possibly save your home with the help of the bankruptcy courts. Instructions 1 ...

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My House Is Being Foreclosed: Can My Settlement Money From an Accident Be Garnished?

When you go through a foreclosure, lenders can sometimes come after you for the amount that they are unable to recover through a foreclosure auction. When this happens, the court could issue a judgment in the lender's favor against you. At that point, any money that you have on hand could be fair game to the creditor. Deficiency Judgments If you have a recourse mortgage, your lender can come after you in the event of a foreclosure. A recourse mortgage is a loan that allows lenders to take further legal action on top of simply foreclosing...

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Debt Relief Drawbacks

When debtors use a plan or service to make the burden of debt easier to deal with, this is known as debt relief. Debt relief is a general term that can encompass a number of different strategies, including restructuring, consolidation and settlement. Restructuring is the act of changing the terms of the loan. Consolidation uses a new debt to repay an old, possibly late debt. And settlement offers a large debt payment in exchange for some measure of debt forgiveness. These options may help borrowers, but they also have drawbacks debtors should fully...

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Scholarship Essay Tips: Educational & Career Goals

A college education costs much more than the average high school senior has tucked away from part-time retail gigs. But higher education is a necessity for long-term career satisfaction and financial security. Personal savings are a start, but many students need loans, bursaries and scholarships to make it through college. Thinking critically about your educational and career goals will help you write the impressive essays you need to win scholarships...

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How to Fix Credit Health

Your credit report and score determines your credit health. And having bad credit can result in higher finance fees, bad loan deals and credit rejections. You can improve your credit health and become a desirable loan candidate. This requires good credit habits and wise decisions. Once you've reversed a bad situation, you'll be able to walk into any loan office and apply for a home loan or vehicle loan with few hassles. Instructions 1 Walk away from credit cards. Using credit cards keeps you in debt, and high debts reduce your FICO credit...

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Ways to Quickly Fix a Credit Score

Many things can be done to raise your credit score quickly and allow yourself access to lower interest rates for larger purchases--and the ability to get credit accounts when you need them. Of the three major credit agencies, two of them, Equifax and TransUnion, use the FICO scoring system developed by Fair Isaac and Company. Experian uses its own scoring system, but it is very similar to the FICO system. Use good credit practices to raise your FICO and Experian credit scores quickly. Your Bills Get in the habit of paying your bills on...

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The Best Places to Access a Credit Report

A credit report is information detailing a person's payment history, accounts, balances and payment behavior for each account. It includes a person's residential information, how he pays his bills and whether he has ever been sued, arrested or filed for bankruptcy. It is used to provide information to calculate the credit score or FICO, the three-digit gauge of one's creditworthiness. This is then used as reference by creditors, lenders and insurance...

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Legal Debt Solutions

Legal debt solutions are available to consumers and businesses to help with debt. Consumers aren't always aware of the various debt solutions available. Often, it is possible to avoid bankruptcy or repossession by working with creditors, credit counselors or government agencies that help set up manageable payment plans. A credit counselor might be able to reduce finance charges and collection calls, as well as help debtors establish a budget that...

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Should You Do Debt Negotiations?

Debt negotiations are methods that debtors can use to help reach a better financial position. These negotiations are generally possible because of two different reasons. First, lenders are often willing to negotiate in order to keep a loan profitable and avoid taking losses or resorting to legal measures like foreclosures. Second, many government and nonprofit programs exist to help debtors seek debt negotiation or renegotiation in order to improve the economy as a whole. Debt negotiations can be very useful and should be one of the first steps...

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Features of Debt Settlement

Debt settlement can reduce the amount of debt you owe and help clear debts you have stopped paying. Many lenders are willing to negotiate a settlement, because they want to receive some money for the debt rather than none at all. However, most companies will not negotiate debt settlement with you until you are several months behind on your payments. Settling Your Debts When you settle a debt, you agree to pay a portion of what you owe to the company, and the creditor forgives the remainder of the debt. This is an option only if you are...

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Can You Negotiate With a Collection Company to Remove Negative Credit Reports?

Collection agencies regularly report consumer debts to the credit bureaus. A collection account within your credit history has a significant derogatory impact on your credit score and can cause lenders to turn you down for new credit. Depending on the collection agency that currently holds your debt, you may be successful negotiating for the removal of the negative entry from your credit report. Facts A collection agency may agree to modify its reports to the credit bureaus in exchange for payment. While certain collection agencies will...

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Can I Be Sued if a Creditor Has Written Debt Off?

The longer you go without paying back your debts, the worse your consequences become. If you fall far enough behind on your debts, your creditors may end up suing you for repayment. The timing of any lawsuit is at the discretion of the creditor and can vary widely. However, even after a debt is written off, your creditors can still sue you. Debt Write-Off As a debtor, a debt write-off sounds like something positive, as if you would no longer be responsible for paying back your debt. Unfortunately, a write-off, also known as a charge-off,...

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What is a Signature Bond?

A signature bond, like other types of bonds, allows a suspect to be freed if he promises to show up in court. If he is not present for his court date, a bench warrant will be issued for his arrest and whatever amount of money was agreed upon between the court and the suspect will be paid to the court. In essence, a signature bond ensures that a suspect will show in court or pay a sizeable fine and be physically turned over to the courts. Function...

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Legal Tactics for Debt Elimination

People who get deeply into debt are sometimes tempted to bend the rules a bit to escape it. This is not a good idea, because it could lead to legal repercussions. Furthermore, it isn't necessary, because there are many options available for people who are experiencing debt problems. Making a long-term plan for escaping from your debt is critical to your eventual success. Prepayments If your debt problems are not so serious that they have...

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