Arizona Unsecured Debt Laws

Unsecured debts differ from secured loans such as mortgages or vehicle loans in that the debt is not backed by any property. Thus, creditors cannot seize your property if you fail to pay a debt. In Arizona, creditors can sue debtors for the amount of an unpaid debt and may be able to garnish the debtor's wages to collect the debt. However, creditors must obey Arizona laws regarding how and when they may collect debts. Statutes of Limitations As of June 2011, most unsecured debt in Arizona has a statute of limitations of three years. Creditors...

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Credit Card Reduction Laws

Credit card debt is only reduced when a settlement between borrower and lender is reached. This can occur through bankruptcy, debt repayment plans, and debt forgiveness. The law requires that the reduction in credit card debt be taxed as income. Bankruptcy Laws Personal bankruptcy has two forms, Chapter 7 and Chapter 13. Chapter 7 involves liquidating your assets and then using it to pay off all debts, including credit card debt. In Chapter...

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Is There a Statute of Limitations on Defaulting on a Credit Card?

There is no statute of limitations that governs defaulting on credit card debt. There is a statute of limitations, however, that establishes a maximum time frame within which a creditor must file a civil action in court to recover the default balance owed. Identification The statute of limitations is a principle of law that precludes a plaintiff from filing suit against a defendant after the expiration of a certain period of time. Statute of limitations periods are established by each state for various legal causes of action. The statute...

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Florida Fair Credit Act

The Fair Credit Reporting Act is a federal initiative that protects the rights of Florida citizens when it comes to consumer credit transactions and credit reporting, according to the Florida Department of Agriculture and Consumer Services. Free Credit Reports Starting in June 2005, the Fair Credit Reporting Act enabled Florida citizens to get one free copy of their credit reports from each bureau annually, according to the state Department of Agriculture and Consumer Services. Disputing Errors If you review your credit reports and...

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Drawbacks of Debt Settlements

Not being able to pay your debts, for whatever reason, is stressful. The collection calls can become relentless. Many people eventually settle their debts for less than the amount owed, whether through the original creditor or through a collection agency. Though settling your debt for less sounds great, there are some drawbacks to keep in when considering debt settlement. Tax Implications Settling your debt for less than you owe can lead...

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Do Credit Card Companies Negotiate With Their Customers to Reduce Debt?

Credit card companies usually send accounts to collection agencies when no payment has been received for 180 days. In such cases, cardholders may have to pay the full amount they owe to the collection agency. Therefore, it's better to try to negotiate a debt-reduction settlement with a creditor before your account is referred to a collection agency. Function The U.S. Federal Trade Commission (FTC) website recommends that consumers make an...

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Will the Debt Be Removed From My Credit Report If I Pay the Collection Agency?

You got behind on your bills and missed some payments --- and your accounts went into collection. Now the financial tides have changed and you're ready to pay off that debt and improve your credit score. It sounds straightforward enough, but paying off your debts isn't always a surefire way of getting negative marks removed from your credit report. Collection Reports When a notice that an account is in collection appears on your credit report,...

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Is It Bad to Settle With a Credit Card Company?

When you have a large credit card balance, you may be tempted to try to settle your account for less than you owe. While this can help you save a considerable amount of money on repaying your debt, it can also have some negative consequences of which you need to be aware. Settling Credit Card Debt To settle a credit card debt, you typically have to be delinquent on your account by several months. Once you have shown that you are unwilling to pay your credit card debt, the company may offer to settle your account. When this happens, they...

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How to Find a Credit Score Without Paying a Fee

The law mandates that each of the credit bureaus must give you a free copy of your credit report once per year. If you've ordered yours through the official AnnualCreditReport.com, you may have been disappointed to see that, while you could see your report for free, you have to pay to get a copy of your score. If you want to get your credit score without paying a fee, you can do it, but you have to be very careful. Instructions 1 Sign up for...

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How to Answer Civil Summons for Debt Collection

Answering a civil summons for debt collection is a serious matter. A civil summons for debt is a civil lawsuit. If you fail to answer the lawsuit, the debt collector will win an automatic victory called a "default judgment." A judge will sign the default judgment ordering you to pay a specific amount of money to the debt collector. If you fail to pay, the debt collector can request garnishment of your checking account or wages. Answering the summons protects your rights under the law. Instructions 1 Read documents sent to you by the court...

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How Does Switching Jobs Affect My Wage Garnishment?

A wage garnishment is a legal remedy that your creditors have against you in the event you do not pay monies owed. Once a court grants a wage garnishment to the creditor, it is served to your employer. From that point on, your employer is legally obligated to withhold funds from your pay and submit the payments to the court, who in turn sends the payments to your creditor. Writ of Garnishment When the court rules in favor of the creditor,...

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Total Debt Recovery

Total recovery from your debt requires planning, dedication and perseverance. Like making new year's resolutions, you may launch your debt elimination plan full of energy and excitement. However, in the middle of the payment process, you may find it difficult to see the light at the end of the tunnel. By concentrating on the freedom that total debt recovery will bring you, you're more likely to experience success in the long run. Budgeting The first step to gaining control of your finances is to understand where your money is going each...

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Options for Non Bankruptcy Debt Relief

Bankruptcy is not always the best solution for those in financial trouble. A bankruptcy can stay on your credit for up to ten years. Moreover, if you file Chapter 7 bankruptcy, you could lose some of your property. By choosing a non-bankruptcy debt relief solution, you can work on getting yourself back on track without your credit score taking a complete nosedive and potentially losing property. Request a Loan Modification If your primary...

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Statue of Limitations for Credit Card Debt in the State of Vermont

Statutes of limitations are laws that set a maximum time limit for individuals and businesses to seek compensation for breaches of contracts in a court of law. A debt that exceeds the statute of limitations is referred to as a time-barred debt. The state of Vermont sets the state statute of limitations on credit card debt in Title 9A, Article 3 of the Vermont Statutes. Time Frame In the state of Vermont, a credit card company or a debt collection agency can attempt to collect a debt through legal action up to six years after a borrower...

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Can a Spouse's Assets Be Taken in a Civil Judgment?

Obtaining a civil judgment against you in court is usually a creditor's last resort to force repayment of a debt. If you have fallen behind on your bills because of a job loss, medical condition or other unforeseen reason, you may find that you can no longer pay your creditors. Your creditors may pursue you in court and receive the right to collect the debts you owe in other ways. This can make your spouse's assets vulnerable in some situations. Civil Judgment As soon as you realize that you do not have enough money to pay your bills, contact...

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Correcting a Delinquent Credit Card

Correcting a delinquent credit card likely means you're trying to change information on your credit report about the account. The credit card delinquency could be hurting your credit score or even keeping you from being approved for a mortgage. Fortunately, you can easily have the information changed on your credit report--if it is inaccurate. Otherwise, you'll have to live with it. Negative information that is true can remain on your credit report...

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Texas Laws on Surviving Spousal Debt

Texas laws regarding surviving spousal debt differ from the laws of most states, primarily because Texas is a community property state. Community property states differ because property, assets and credit accounts are considered to be jointly owned by both parties in a marriage. This means the debts accrued during a marriage are also shared by both parties. The type of property held by the couple determines whether the surviving spouse is legally...

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Services That Help You Rent With Credit Problems

Rental agencies, apartment complexes and rental brokers use credit scores and past credit references to determine an individual's credit history. Evictions, credit card delinquencies, defaulted loans and late rental payments can damage a person's credit history. Bad credit can also ruin a person's rental prospects. With the help of services like the Rent Well Tenant Education Program in Portland, Oregon, people with poor credit are learning how to...

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How to Reduce a Debt Problem

Debt problems can sneak up on consumers. Whether you struggle with job loss or health issues, getting stuck in financial hot water is stressful. Reducing debt can be accomplished. However, it's not a quick fix. Tackling debt takes hard work. You'll need to create a repayment plan and partner with creditors to reduce debt obligations for good. Instructions 1 Create a budget. The Federal Trade Commission (FTC) recommends creating a budget to...

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How to Make a Payment on My Iowa Student Loan

There are four ways in Iowa to pay off loans for higher education. Borrowing for college averages $7,100 annually in the United States in 2007-2008, according to the National Center for Educational Statistics. Most loans offer a grace period, after graduating or leaving school, before repayment must start. For example, the grace period for federal Stafford Loans is six months. Graduated payment plans, in which payments are smaller in the beginning...

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How Does a Forbearance Affect a Credit Rating?

Forbearance is a term used to describe a pause in required payments on a loan. This is common with student loans and mortgages. Lenders will grant a forbearance when borrowers lose access to income and cannot continue to make payments for some time. The forbearance halts required monthly payments for a period of time, usually no longer than a year, and then allows payment requirements to resume, counting the missed payments back into the total amount. This has effects on credit ratings depending the borrower's situation. Forbearance Timing...

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How to Fix My Credit Report If It Is Showing a Former Married Name

Changing your name after a marriage or divorce can be a hassle. If you've recently examined your credit report and found that it is still under a previous name, correct the problem immediately. This error has nothing to do with the credit reporting agency; the agencies merely display the information they receive from creditors and service providers. Instructions 1 Gather the documents needed and make copies. You'll need your divorce decree and valid photo identification (such as a driver's license or state ID) reflecting the name change....

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Mortgage Interest Reduction Tips

As anyone who has taken out a mortgage knows, the interest charged over the life of a 25 or 30 year loan can add up to a large amount. Too many people just pay it. What you might not know is that there are some strategies that result in paying less interest and getting rid of the principal faster. Keep in mind that banks structure loans in a way that is beneficial to them and so that they can make the most profit (interest) from your mortgage. Offset Account One clever way to reduce the amount of interest you pay is to set up an "offset"...

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Online Information For Debt Consolidation for Bad Credit

If you're in a bad credit situation, you may be searching for online information to help you understand your various options for debt consolidation. While the Internet has a wealth of information about debt consolidation, it may be difficult to sort the good from the bad. There are four resources offering excellent launching points for your research into debt consolidation. Annual Credit Report The first place you should look online if you...

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I Have a Problem Paying My Credit Card

When your budget becomes strained and you find yourself without the funds to pay your credit card bill, you have options. The options that are available and logical for you to accept depend on the amount of your debt, what your creditor or other debt management solution offers and the future of your finances. Creditor's Debt Plans When you find that you can't make the payment on your credit card, you should contact your creditor and inform...

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How to Deal With a Derogatory Credit Report

False information on a credit report can hurt you. A lender who reads that you're still in default on an account you paid has no way to know differently. Neither do employers or insurers who check credit data before deciding to do business with you. Fortunately, federal law protects you against derogatory credit reports. Credit-reporting companies and anyone providing them with information have a legal obligation to correct errors. It's up to you to catch the errors and notify them. Instructions 1 Order a free credit report from each of...

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How to Run Credit Check on a Minor

The only reason to run a credit check on a minor is to ensure his personal information isn't being used illegally. Credit monitoring companies do not purposely keep credit scores of minors. In today's age of identity fraud, thieves are finding any way possible to take advantage of the credit system. No one is entirely safe from identity theft, and thanks to the Internet it is becoming easier to gather personal information. Only a parent can call...

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How to Dump a Home Equity Loan

The U.S. Department of the Treasury reports that a home equity loan allows you to leverage your home's built-up equity. Banks, credit unions and other lending institutions may lend you money based on your credit and the equity in your home. However, the equity serves as collateral, making it difficult to simply "dump" the home equity loan. Defaulting on a home equity loan could lead to the lender foreclosing on your house -- a key reason why you should treat a home equity loan very seriously. Instructions 1 Talk with your lender about why...

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Mortgage Lenders & Credit Problems

Credit problems can occur during the application process for a mortgage. Errors on credit reports, unpaid delinquent debts and other issues can delay approval. However, major credit problems, such as a recent bankruptcy, could result in an immediate denial. Significance Credit problems are closely reviewed by mortgage lenders because they are a reflection on your ability--or willingness--to pay your bills on time. Expert Insight BCS...

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Creditor Settlement Agreement

If you're struggling with debt, there are a number of options for dealing with it, including debt consolidation, bankruptcy and debt settlement. A debt settlement agreement, which you negotiate with your creditors, allows you to pay less than what you owe and avoid the potentially complicated process of filing bankruptcy. Eligiblity While each creditor has its own requirements regarding settlement agreements, you must meet some basic criteria...

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How to Get Debt Collectors to Stop Calling

It's emotionally wearing to be struggling financially and then cope with harrassing bill collectors. The Fair Debt Collection Practices Act places some limits on their behavior. Here's the Federal Trade Commission's advice on how to apply this to your situation. Instructions 1 Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe. The notice should also include...

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Help With Wage Garnishment

When you lose control of your paycheck, it can be a particularly frustrating experience. This is exactly what happens when you have your wages garnished, as your creditors can have access to your paycheck before you receive it. If you find yourself in this situation, you can pursue a few options. Live With the Garnishment One option that you may have is to simply allow the garnishment to proceed. The creditor will stop garnishing your wages as soon as the debt is repaid. If the garnishment is not a very large percentage of your pay, this...

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Myths About Improving Credit

A person's credit score matters for a number of different reasons, namely that it will often affect the price that a person will receive on his loans. If a person has too low a credit score, he can expect to be charged a high rate of interest from a lender. Many people seek to improve their credit scores, but a number of myths pervade the practice of credit score repair. Negative Information Stays on Your Report Forever In fact, the longest amount of time that negative information can stay on your credit report is seven years -- save for...

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10 Reasons to Stay Out of Debt

The number of people in debt is staggering; according to MSN, about 43 percent of American families spend more than they make each year, driving them deeper into debt. People get into debt in a variety of ways, including credit cards, student loans, medical bills or financed purchases that were not paid off in time. While some debt is necessary, like paying medical bills, debt should generally be avoided for a number of reasons. Stress With...

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Statute of Limitations for Consumer Debt in Vermont

When a consumer debt can't repay his debts in a timely manner, he may be subject to a creditor's collection lawsuit. If the creditor's lawsuit results in a judgment against the debtor, actions used to collect the debt can include a bank account levy and wage garnishment. However, a creditor must act before the statute of limitations expires. In Vermont, the law generally limits the creditor to six or eight years to collect most consumer debt. Civil Actions A creditor's collection action falls under the definition of a civil action in Vermont...

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How to Get Medical Records Off of Your Credit Report

Health care is expensive. And even if you do have health insurance, you may pay a huge out-of-pocket expense for doctor visits, surgeries and emergency care. Unfortunately, failure to pay a medical bill can result in a lower credit score. Hospitals and doctors may report unpaid bills to the credit bureaus. Aside from dealing with a low credit score, having medical records on your credit report can prevent you from getting a mortgage or auto loan....

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How to Enforce a Judgment Debt

Judgments must often be enforced by additional legal procedures. This can be disappointing news to litigants who may have spent large amounts of money and effort to obtain a judgment. Courts will not collect your judgment for you. However, there are legal procedures and techniques that can be employed to collect judgments. Some judgment debtors file bankruptcy to avoid paying judgments. Although bankruptcy can eliminate many court judgments, there...

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What Happens to Your Credit if You Don't Pay Your Loan?

Until the early 1830s, you could still go to prison in the United States for failing to pay debts. It may seem tempting to stop paying back your loans and let your credit score take the hit, but this is the worst possible scenario. Failure to pay loans impacts your future ability to gain credit, but you can eventually recover. Time Frame How much defaulting--failing to pay a loan on time--affects your credit depends on how late you are with...

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Credit Counseling Options

Some credit counseling agencies offer an initial counseling session for free and are able to set up debt management plans, if necessary, by which they take a monthly amount from the consumer and pay the consumer's unsecured debts. You can find counseling through credit counseling accreditation groups, credit unions, some university extension programs and through paid agencies. The Federal Trade Commission suggests you avoid counseling agencies that...

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