Is it Legal to Garnish Wages in Georgia?

Georgia follows federal regulations for wage garnishment. This means the state has no separate laws for garnishment and instead opts to allow federal law to take precedence. Georgia law does maintain a separate statute of limitations for creditors to pursue judgments to force wage garnishment. Each type of debt is assigned a different statute for debt collection purposes. Statute of Limitations Georgia law places a varying statute of limitations on debt collection conducted within its borders. A debt collector has up to four years to sue...

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Repossession Laws on Rent-to-Own Companies in Michigan

A rent-to-own transaction allows a buyer to take possession of a product without paying the full purchase price. The buyer pays the balance of the purchase price in periodic installments and acquires full legal ownership only after the full purchase price is paid. If the buyer defaults prior to full payment, the seller can repossess the item. Michigan has enacted special provisions to protect buyers who default on rent-to-own agreements. Ethical...

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Is It Legal to Pay a Mortgage With a Credit Card?

Paying debt with a credit card is an option that is used not only as a convenience or in times of financial distress but to earn rewards offered by credit card companies. Many types of debt can be paid using credit cards, such as utility bills, credit cards, personal loans and even auto loans and mortgages. Legal While it is legal to pay your mortgage with a credit card, it does not mean that you will be able to pay with a credit card. There...

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How to Activate My Credit Monitoring

Credit monitoring is a paid service that offers access to your credit reports and monitors changes to your credit profile. The service helps prevent identity theft by notifying you of critical changes to your credit profile. After signing up for a credit monitoring service, you will need to activate the service before you can use it. You can normally activate your service by phone, email or on the Web. Instructions 1 Call the customer service phone number for your credit monitoring service. If you did not sign up for credit monitoring over...

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How to Open a Bank Account With a Bad Credit History

You may be pleasantly surprised to learn that despite a bad credit history, most banks won't hesitate to let you open a bank account. While some banks check potential customers' credit reports before allowing them to open accounts, others do not. Rather, such banks rely on the ChexSystems, which tracks people who make it a habit to write bad checks. Thus, that loan you defaulted on or credit card payments you fell behind on will not impact your ability to get a bank account as long as you go to the right bank. Instructions 1 Call the bank...

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What to Do When a Hospital Bill Gets Sent to a Collection Agency

Tens of millions of people have problems paying off debt. Although hospitals shy away from hardball collection tactics, the medical provider can still write it off by sending the bill to a collection agency. Once the debt goes to a debt collector, it can pursue the debt by any legal means, which might mean a lawsuit. Dispute the Debt If you have concerns about the validity of the debt, such as when the bill contains erroneous charges, you can dispute the bill with the credit-reporting bureaus. The bureau will investigate the legitimacy...

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What Percentage Can the VA Take for a Debt From SSI?

Most creditors are prohibited from garnishing you social security income in any way thanks to Section 207 of the Social Security Act. However, the federal government may garnish wages from SSI if you owe a federal debt. Examples include tax payments, food stamp overpayments and government backed mortgages. If you default on a home loan backed by the Department of Veterans Affairs, the government can garnish your SSI. VA Loan Default Basics When you default on a VA loan, you actually default with a private lender first. Once the VA has assumed...

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Can Effective Rate and Nominal Rate Ever Be the Same?

Effective rates can be the same as nominal rates; however, the effective rate is usually higher. These rates refer to the amount of interest charged to a specific balance, and the nominal rate is the base rate used in calculating the effective rate. Sometimes the nominal rate does match the effective rate due to factors that affect when and how much interest accrues on the balance, and how it is calculated. Nominal The nominal interest rate does not apply to previously accrued interest. In other words, the nominal rate is the agreed upon...

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What Do I Do If There Is Fraud on My Credit Score?

If you are receiving more credit card offers in the mail than normal or if you receive a credit card bill for an account you did not open, then you may be the victim of credit fraud. Once you suspect credit fraud, you should take steps immediately to protect your credit. Fraud Alert According to the Federal Trade Commission, a fraud alert will help prevent any unauthorized credit accounts from being opened in your name. When a fraud alert...

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What Affects My Credit Score?

The importance of good credit cannot be overstated. Credit scores determine how much you will pay for a loan. It's difficult for most people to pay for items such as a car, a home or a college education without borrowing money. Further, many employers now routinely review the credit records of their applicants as a part of their background checks of prospective employees. Some insurers also review credit scores when determining insurance rates. Given the significant role credit scores play, it is crucial to know how your score is determined and...

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Facts About Debt Collectors and Wage Garnishment

Being in debt is stressful. Being wage attached, or garnished, for your debt is even worse. There are federal guidelines, laws and rules in place for wage garnishments by debt collection agencies. Types of debts and the amount of the garnishment are limited. Each state may have additional laws, but they have to abide by the federal statutes. Percentage The maximum garnishment is 25 percent of your disposable earnings. The only exceptions are for court-ordered payments and state or federal taxes. Monetary Exceptions The 25 percent...

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If I Pay My Creditor Will the Collection Agency Still Report This Bad Credit?

Collection accounts within your credit file are always considered derogatory by the credit bureaus and, according to the Fair Credit Reporting Act, will remain for 7 years from the date you originally defaulted on the debt. Depending on the arrangement your creditor holds with the collection agency, paying your creditor may prevent a collection account from ever appearing on your credit report. Types Creditors have the option to either charge-off...

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What to Do When Your Car Is Repossessed & the Company Won't Give You a Settlement?

Automobile repossession is a serious issue and, in extreme cases, can lead to bankruptcy. A company or lender that will not offer a settlement on auto repossession may be preparing to resolve the issue by filing a civil lawsuit, if necessary. A lawsuit allows the lender to win a judgment for the full balance on the loan after the repossession. Process Lenders sell cars at auction or private sale after repossession. Repossession usually occurs after the owner falls two or three payments behind. The repossession takes longer if the owner...

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How to Become Debt Free Fast

Becoming debt free has become more important as economic conditions in the world continue to fluctuate. The process of getting rid of debt can be a tenuous one, but it is possible. Instructions 1 Cut 'em up. That's right, cut your credit cards in half, with the exception of one for emergencies only. This doesn't mean you are closing your accounts; you are just denying yourself access to them. This first step must be taken before any others because if not, once you have paid off your old debts, you will only feel tempted to give yourself...

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How to Make My Debt Less

Drastically reducing the amount owed to your creditors can improve your personal finances in a major way. Some people spend a huge percentage of their monthly income making debt payments. This results in less income for savings and dealing with unexpected expenses. Learn ways to lessen your debt load and increase your disposable income. Instructions 1 Buy items when you have the cash. Buying merchandise you can't afford increases debt because you're more likely to use credit cards or financing with retail stores. Save up when you need to...

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Is It the Right Choice to Reduce Credit Limits to Increase Credit Scores?

Improving your credit score is a good idea, but in most cases, reducing your credit limits is not the way to accomplish this. In fact, reducing your credit limits can actually hurt your credit scores significantly. There is no easy fix for improving your credit; it takes time and good management to improve your scores. Credit Score Factors Your lines of credit, credit limits and payment history all factor into your credit score. Your credit limits themselves do not raise or lower your scores. Late payments, missed payments and how close...

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How to Negotiate with Bill Collectors

Bill collectors are relentless, and they'll call your house or place of employment for a payment. Ignoring bill collectors may seem like a logical approach if you don't have the money. However, ignoring the telephone calls doesn't make the problem disappear. If anything, collectors are less willing to negotiate when you ignore letters or phone calls. Communication is the key to negotiating with collectors and resolving debt. Instructions 1 Settle for less than you owe. Agree to pay something on the account. Communicate with your bill collectors...

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Five Reasons Why It Is Better to Lease

Leasing an automobile carries may distinct advantages over a traditional auto loan. Many consumers buy into the myth of a lease agreement with hidden fees that will devour any savings and leave drivers owing thousands of dollars at the end of lease terms. Responsible use of leased vehicles leads to savings and the ability to continually switch vehicles. Leasing is Cheaper Leasing a car allows for a short-term commitment to a vehicle at a lower price than taking out an auto loan. With a lease, you're only paying a portion of what the vehicle...

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The Responsibility of a Deceased Spouse's Debt

The loss of a spouse is bad enough without thinking about how to settle her debts. The responsibility for paying them usually falls on the deceased's estate, but there are times the widow or widower may be liable for unpaid bills. Responsibility varies with state law, the nature of the debt and whether it was one spouse's obligation alone or a shared responsibility. The Estate The deceased's estate is initially responsible for paying his debts. The executor must go over the deceased's records and contact creditors. State law may also require...

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Can Credit Card Debts Be Attached to Real Estate?

Most credit cards are unsecured debt (although consumers rebuilding their credit scores may get a secured card with a cash deposit as collateral). Only a promise to pay and a good credit history backs unsecured credit cards. This makes underwriting credit card debt risky and contributes to the high interest rates issuers charge for these unsecured lines of credit. Despite the initial unsecured status, a credit card debt can attach to the debtor's...

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Who Should Use Interest Only Loans?

Most types of loans require interest on monthly payments. However, some mortgages, home equity loans and other loans allow you to pay only interest for part of your repayment period. Whereas this sort of loan isn't for everyone, some might find them preferable. Young Workers Those anticipating a rise in income from entering the workforce or taking a new step in their career can benefit from an interest-only loan. Exclusively paying interest enables borrowers to access money when they need it, then delay principle repayment until a more...

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What to Do When You Receive a Collection Letter?

If you have unsettled debt, or a collection agency thinks you do, you might get a collection letter. Third-party collection agencies sometimes purchase your debt from the company you originally owe the money to, so your debt is owed to whichever company sends you the letter. Before taking action, you should thoroughly understand why you received the collection letter and your rights as a consumer. Letter Information The Federal Fair Debt...

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Impartial Debt Advice

Personal debt makes your finances difficult to manage, and finding assistance is not necessarily easy. A person with an interest in your debt, such as a creditor, does not usually offer financial advice that is impartial and relevant to your personal circumstances. While not every person's debt level or options is the same, some advice applies to nearly every circumstance. Make a Budget A budget, or listing of all of your income and bills for each month, allows you to plan ahead and see where your money actually goes. You'll be able to...

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Definition of Disposable Wage for Garnishments in Maryland

Maryland wage garnishment is a debt collection process that occurs when a debtor fails to pay a debt. Wage garnishment allows creditors to obtain payment for past due services, lines of credit and bills. After obtaining a judgment against the debtor, the creditor may request an employer deduct a portion of a debtor's paycheck each pay period to reconcile a debt. The amount a creditor can garnish depends on the amount of the debtor's disposable income....

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Death & Debt

People sometimes mistakenly believe that their debt will die when they do. Unfortunately, this is often not the case, as a death can leave the deceased person's loved ones saddled with the unpaid debts. Understanding what debt can survive debt and who inherits it can help you plan accordingly for the future, ensuring that your debts don't haunt your loved ones from beyond the grave. Credit Cards Credit card companies often write off debt...

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How to Talk to a Bank in a Short Sale

The best way to talk to your bank about a short sale is get right to the point and make it a conversation about business -- and not emotions. Being forced to sell your home and walk away with none of its former equity is obviously stressful. Problems with selling the home may have been the tipping point for other financial problems you are having, and having to talk to the bank about a short sale could seem overwhelming. Short sales are necessary when you must sell but the home is worth less than the balance due on the mortgage. Instructions...

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Delaware Statute on Wage Garnishment

Allowing a debt to become past due will typically result in the creditor seeking recovery through letters and telephone calls. However, if you do not make an effort to catch up your missed payments, most states permit creditors to execute garnishment of your wages to recover the debt balance. In Delaware, wage garnishment is governed by federal law and Delaware state law. Judgment Before most creditors can garnish your wages, they must obtain civil judgments against you by a Delaware court. However, debts involving unpaid child support...

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Banks to Help Rebuild Credit

Several banks will give you the opportunity to re-establish your credit. Whenever your credit history is less than desirable due to bankruptcy, foreclosure, collection accounts or judgments, re-establishing credit is probably going to be your best plan of action. Before you apply, make sure you find the bank offering the most favorable and cost-effective terms and conditions. U.S. Bank If you want to rebuild your credit, you may have to pay higher interest rates, along with a number of fees. U.S. Bank will help rebuild your credit with...

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How to Answer a Summons if I'm Declaring Bankruptcy

A summons is a notice of a lawsuit and is usually delivered by a courier. Summonses are very serious, because they can lead to a court judgment and even garnishment of a debtor's bank account or wages. Credit card companies and other lenders often file lawsuits in civil court to collect unpaid debts. A debtor filing for bankruptcy should answer a summons, although the bankruptcy will eventually address the debt and end the lawsuit. Instructions 1 Protect your legal rights by treating the summons as if bankruptcy isn't an option. Failing...

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The Effects of Cooperative Loans

Cooperative loans, or co-op loans, are relatively new loan products -- they entered the market in the 1960s. These types of loans are most common in urban areas where residents are interested in laying claim to a piece of real estate, but cannot afford to purchase an entire unit on his or her own. It's important for a buyer to understand the differences between co-op loans and standard mortgages. Traditional Secured Loans Traditional secured loans, or mortgages, are loans used to purchase an entire piece of real estate. These loans buy...

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How to Find Broken Lease Records for Apartments

Screening prospective tenants for broken leases or outstanding rent balances is an important part of a landlord's rental process. If a potential tenant has broken a previous lease and still owes another landlord money, this can be the deciding factor in whether or not to rent property to him. Instructions 1 Ask potential tenants to provide a list of previous residences. Most landlords will limit the list to all previous residences within...

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How to Check Your Credit Report Online

The federal law requires all consumers to receive a free copy of their credit report every twelve months from each of the three national consumer credit reporting agencies. These three credit reporting agencies are: TransUnion, Experian and Equifax. It is a very good idea to check your credit report for a lot of reasons. Identity theft is on the rise and you want to make sure all of the items listed on the credit report are correct (and yours). Even if you are not thinking of buying anything or need your credit report for any specific reason, you...

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The Options if Getting Sued by a Debt Collector

A lawsuit is typically a last resort for debt collectors; because litigation is expensive, collectors usually exhaust all other options, including demand letters, phone calls and attempts to offer you repayment plans before deciding to file suit against you. Avoiding a credit lawsuit is essential for avoiding financial disaster because, after the collector files suit, your options are severely limited. Challenging the Lawsuit After the collector...

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How to Make an Offer on a Social Security Overpayment

If you've been awarded Social Security benefits and it has been determined that you received an overpayment, the Social Security Administration takes steps to recover the loss incurred by the system. In most cases, if you receive benefits, the SSA withholds your Social Security benefit check until the overpayment is paid in full. In certain circumstances, the agency may set up a payment plan for you. Other Repayment Scenarios If you no longer receive benefits, the agency asks you to return the overpayment. In the event that you don't pay,...

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Legal Rights on Disputing Credit Reports

A credit report is a compilation of how you have handled your financial accounts. This report is is associated with a credit score. The credit score is a three-digit number ranging from 350 to 850. Creditors will often review your credit report and score when evaluating you for potential credit. Credit reports should be reviewed periodically to ensure accuracy. It is your legal right to dispute any errors you find on your credit report. Who Gives Me the Legal Right? The Federal Trade Commission enforces the Fair Credit Reporting Act. The...

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Truth About Debt Consolidation

Debt consolidation is paying off multiple accounts with funds from a new loan. Many people pursue this option because it allows them to focus on only one, possibly lower, monthly payment. While it can help in some ways, one problem is that people often return to the same financial habits that got them into trouble in the first place. How it Works When a person chooses debt consolidation, he typically takes out a home-equity loan to pay off other accounts. Then the individual pays only one payment to the home-equity lender. In many cases,...

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What Is in Not-for-Profit Financial Statements?

Government agencies, including the Internal Revenue Service, attempt to set rules to monitor the way nonprofit organizations record and report their operating data. Even though charities and other nonprofits, such as universities, don't operate with a profit motive, philanthropic institutions cannot withhold performance data or hide the truth about its finances. Statement of Financial Position A statement of financial position reflects the solvency of a nonprofit, telling readers how top management is administering the organization's resources....

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How Do Consolidation Loans Work?

The Facts As of the year 2007, consumer debt amounted to $2.5 trillion. This amount was derived from credit cards, student loans and automobile loans. Many consumers have turned to consolidation loans to get a handle on accumulated debt. In a nutshell, a consolidation loan is made up of several smaller loans, or debts, all rolled up into one lump sum. There are benefits to consolidating your debts, as well as disadvantages. This article will...

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