How to Stop Paycheck Garnishment

If you owe money, a creditor can sue you in court. After successfully suing you, she can ask that your wages be garnished. Every pay period, your employer must withhold a certain amount of your pay and give it to your creditor. The creditor cannot garnish your entire paycheck; you must retain a small amount to pay for food and other expenses. You can stop garnishment by paying the debt back or otherwise settling it, in or out of court. Instructions Paying Back Debt in Full 1 Visit the clerk of the court. Ask him how much you owe, including...

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If My Bank Froze My Account, What Is the Fastest Way to Unfreeze It?

If a creditor freezes your bank account, you may have the funds in the account released under certain conditions. For instance, federal laws prevent a creditor from freezing your bank account if the amount in the account is below an established threshold. In addition, the law protects bank accounts that contain funds from Social Security and other types of exempt income. In such cases, getting your account released is a matter of providing proof. Exempt Income Protection Act The Exempt Income Protection Act (EIPA), a federal law, protects...

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How to Repair & Fix a Suspicious Address on Your Credit

The Fair Credit Reporting Act was passed in order to more efficiently and effectively protect consumers and their financial lives. The FCRA gives a free credit report to each consumer in the U.S. and provides timely handling of credit report inquiries. It also allows customers to change erroneous information on their reports. If you have a suspicious address on your credit report, you need to verify it and send inquiries to all three credit bureaus....

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How to Find the Best Company for Consolidation Loans

Debt consolidation companies can be reputable, helpful services that assist their customers in getting out of debt or nearly criminal enterprises that end up ensnaring vulnerable, undereducated consumers in a web of even larger debts than the ones they were trying to get out from under. Finding an excellent debt consolidation service requires some research and a willingness to compare offered consolidation loan rates. Instructions 1 Apply for a personal loan from a bank or credit union if you still have a reasonably strong credit score (above...

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Help With Paying High Credit Card Bills

You must be proactive if you want help paying off your credit card bills. While it would be great to receive free money for paying your credit cards, chances are you'll have more success by utilizing options that are readily available. Make a commitment to pay off your debt, and once you choose an option, stick with it until you're debt free. Lower Interest Rates One of the easiest ways to automatically reduce your monthly credit card payments...

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Credit Card Debt & Nursing Home Fees

Senior citizens are carrying more credit card debt now than ever before. Debt often becomes a problem after the senior citizen or his or her spouse suffers a health care crisis and requires nursing home care. Significance According to CBS News, the amount of credit card debt carried by senior citizens increased 89 percent between 1992 and 2001. Many seniors get into trouble with credit cards after they or their spouses suffer a medical crisis....

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How to Answer a Suit From Discover Bank

If you have an outstanding debt with Discover Bank, they are entitled to pursue collection efforts against you, including a civil lawsuit. While filing a lawsuit is often a last resort, creditors may be willing to put forth the time and expense to recoup a debt if all other efforts have failed. If you've been served with a suit from Discover Bank, take the following steps to prepare your answer and establish a credible defense. Instructions ...

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Can You Get a Consolidation Loan With a Co-Signer If Your Credit Is Really Bad?

A consolidation loan can be an ideal solution for someone who has many monthly payments on debts at high interest rates. The consolidation loan pays off all the other debts and leaves the borrower with just one monthly payment, ideally at a lower interest rate. However, getting the loan can be difficult for someone with a bad credit score. One solution is to have a co-signer who applies jointly for the loan. Co-Signer If your credit is really bad, the most difficult part of getting a consolidation loan with a co-signer will likely be finding...

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How Soon Does a Judgment Show Up on a Credit Report?

Major credit bureaus TransUnion, Experian and Equifax usually acquire information about court judgments from third-party information providers. Companies providing the information regularly review court records and notify the credit bureaus about judgments, tax liens and bankruptcies. It is impossible for anyone to precisely predict how soon judgments will appear on credit reports. Court records are reviewed each day the courts are open, and it depends on how fast the information is relayed to credit bureaus. Timeline Experian reports on...

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Types of ACH Payments

Automated Clearing House (ACH) payments occur daily in the United States and are playing an increasing role in consumer and business financial transactions. Definition ACH is a national clearing house in the United States for processing electronic fund transfers (EFT) and is governed by the Federal Reserve and NACHA (the Electronic Payment Association). The Facts ACH payments can be in the form of a debit or credit card transaction...

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How to Stop Collection Agencies

Many people mistakenly believe that if they are behind on paying their bills, there is no recourse from the dozens of daily phone calls they receive from collection agencies. However, according to the Federal Trade Commission (FTC), you do have a right to halt these incessant calls as well as threatening letters. Instructions 1 Talk to the collector. While it may seem counter-intuitive to talk to the person you are trying to get rid of, it is important to talk to them at least once to determine exactly what it is they are trying to collect...

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How to Report to a Credit Company

Reporting a delinquent or late payment on a debt may not be something you want to do, but it can be an important part of your business. Small business owners are often confronted with debtors who can't or won't pay a debt. Knowing how to report these delinquencies is important, and understanding the various ways it can be done affords you more options. Instructions 1 Hire a collections agency. One of the easiest, and most common, ways to report a delinquent or late payment on a debt is to hire a collection agency. These companies will often...

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Interesting Facts About Debt

Debt is a common but often risky source of funds for many Americans. Using debt to pay for homes, cars and education is fairly standard in the United States. However, a buy-now-and-pay-later spending mentality has led to many Americans incurring significant personal loan and credit card debt. Student Loan Debt Business Insider writer Michael Snyder says Americans owe a total of $875 billion in student loan debt, which is actually more than...

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Can My Wages Be Garnished in Tennessee for a Credit Debt That I Haven't Paid?

Having unpaid debt weighs heavily on you, and fearing your wages will be garnished can cause distress and worry. Tennessee has laws that govern wage garnishment. While your wages can be garnished for unpaid debt, there are steps a creditor must take to be able to garnish wages. There is also a limit to what a creditor can take from your paycheck. Student Loans, Taxes and Child Support There are three types of debt that do not require legal...

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What Happens After You Answer a Summons for a Credit Card?

A summons is notice of a lawsuit. In a credit card case, the card company or debt collector files the suit in civil court to collect on a delinquent account. The lawsuit is a last resort to collect the debt and usually follows months or even years of collection efforts. Answering the summons allows you to defend yourself in court, but some debtors fail to appear, according to "The New York Times." The Times reports that most consumers facing a summons never offer a defense, allowing credit card companies to claim easy victories. After answering...

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How to Take a Debt Collector to Court

If you have outstanding debt and are unable to pay your bills, you may find that your creditor has sold your debt to a debt collection agency. A debt collection agency may use a variety of tactics to collect the debt; however, they are bound by a certain set of laws and rules. If these rules are violated, you have the right to sue the collector. Hiring a lawyer specialized in consumer law is advised. Most debt collectors, however, settle out of court to avoid the steep legal fees associated with such cases. Instructions 1 Know which practices...

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Can a Collection Agency Put Lien on a Home Before Bankruptcy in Kentucky?

Creditors often turn over accounts that are past due to collection agencies for collection on the debt. Although a collection agency is a separate entity, it works on behalf of the creditor. If it appears as though the debtor is not going to voluntarily pay the debt, the creditor may file a lawsuit. In Kentucky, a creditor may be able to attach a lien on personal property prior to obtaining a judgment. A judgment is automatically attached after the creditor obtains it. Bankruptcy may temporarily protect the property from enforcement of the judgment....

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How to Terminate All Credit Card Debt

Dependency on credit cards is a big problem in America. The average family owes $8,000 in credit card debt, according to the American Bankers Association. Making the minimal monthly payments on your credit cards won't help you get out of debt---and you'll end up spending a lot more money in the long run. By developing a well-thought-out plan and following a few basics of money management, you can terminate your credit card debt and move down the path to financial freedom. Instructions 1 Compile your credit card statements and map out your...

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Settlement Procedures

The state of the economy has a lot of consumers overwhelmed with debt. Anyone struggling to make ends meet may want to consider settling their debts. To settle your debt there are a number of procedures you will need to follow. It's important to note that there are some consequences as a result of following through with this process. If you can make your monthly payments comfortably, then debt settlement may not be for you. Settlement Procedures Once you decide to settle your accounts, make a list of all of your debts including the name...

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How Often Does Reporting Occur for Home Equity Lines of Credit?

Home equity lines of credit are serious obligations and appear on all credit reports. A home equity line, which is also called a HELOC, is a real estate loan tied to the equity in a home. Lenders reviewing an application for credit always take note of how well the prospective borrower is paying real estate loans. People with excellent credit scores and control of their finances usually never are late with a mortgage or home equity loan payment. Credit Bureaus Major credit bureaus such as Equifax, Experian and TransUnion rely on banks, mortgage...

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How to Reduce Credit Card Interest With Debt Services

If you're struggling to keep up with your credit card payments because of your interest rate, negotiating a lower rate is the first step to making your debt manageable. While you can talk to your credit card company yourself about lowering your interest, you might decide to work with a debt services company if you feel overwhelmed. Different types of debt services companies offer various forms of help. Credit counselors often offer debt relief services...

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Can I Be Imprisoned for Debt?

The number of arrests in the United States associated with attempts to collect debts are difficult to pinpoint because states don't follow the same procedures for such actions. Still, news reports have documented the arrest of people who have fallen behind on paying creditors and court fines. Such stringent debt-collection actions may be linked to economic conditions. Arrested Debtors Debtors' prisons were outlawed in the United States in the 1830s, but a 2010 Minneapolis-St. Paul "Star Tribune" article, In Jail for Being in Debt, says...

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How to Write a Letter to Remove Items From a Credit Report

You may request that items be removed from your credit report if they were reported in error. You also may be able to have information removed if the reporting creditor or collection agency cannot prove that the information is factual and belongs to you. Negative information on your credit reports decrease your credit score, which can have a negative impact on your ability to get a credit card, home financing or even a job. Instructions 1 ...

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Help With Debt Consolidation & Stopping Foreclosure

When your income isn't keeping up with your debt and expenses, bankruptcy and foreclosure may not be far away. By creating a budget and working with your mortgage lender, you may be able to pay back your debts and stay in your home in a way that you can afford. Consolidation If you are a homeowner with unmanageable debt, consolidation may be your greatest tool in avoiding bankruptcy and foreclosure. Home equity loans and home equity lines...

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How Much Can I Garnish Wages in California?

Garnishment is a process where a creditor, through a court order, can garnish a portion of a debtor's wages to satisfy the outstanding debt owed by the debtor. While garnishment is legal in California, state laws protect debtors from excessive garnishment. Chapter five of the California Code of Civil Procedure governs garnishment in the state. Federal Law The California Code of Civil Procedure mimics the federal law with respect to the total percent of wages that can be garnished. Through federal law, creditors are prohibited from collecting...

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How to Pay Off Debts in Collection

Once a bill has been placed in collection, it can be hard to pay off. Additional fees will have been added to the original balance, and the total debt owed can become quite large. Through responsible budgeting and some basic legwork, a borrower can work to reduce his collection debt and eventually pay it off in full. It may take some time and energy, but the reward will be when the collection is removed from your account. Instructions 1 Collect...

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The Best Credit Card Debt Reduction

Reducing credit card debt can be very challenging. However, the end results are well worth the effort. Lowering credit card debt can increase your credit score; and with fewer debt obligations, you can begin building a financial cushion and focus on long-term savings. Speak with Creditors You don't have to accept the interest rate assigned by your credit card companies. A good credit and payment history with your creditors can justify better...

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The Best of Way of Settling With a Collection Agency

You are likely to hear from a collection agency if you let your debts go unpaid for many months, even if the original creditor charged off the bill. Debt collectors can pursue you as long as they follow the Fair Debt Collection Practices Act, according to the Federal Trade Commission. You can stop the calls, and possibly save some money, by reaching a settlement. Negotiate the Amount Credit card issuers and similar lenders try to collect money from you for about six months after you stop making your scheduled payments. They often sell off...

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Help for Rebuilding My Credit

Your credit is not ruined forever after bankruptcy or a rough spell in which your bills go delinquent and get charged off or sent to debt collectors. Rebuilding good credit takes time, but the Fair Credit Reporting Act (FCRA) helps you clean up your credit bureau files, and financial institutions and credit counselors offer assistance in opening and properly maintaining new accounts. Credit Clean-Up Your Equifax, TransUnion and Experian credit reports might have incorrect harmful data along with legitimate negative items. Bob Sullivan of...

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What Are the Best and Fastest Ways to Rebuild Your Credit?

Filing bankruptcy or being turned down for financing because of a low credit score can seem like the end of your financial world, but there is hope. Credit repair is possible; and while improvements don't usually happen in one day, starting anew and learning how to manage credit can fix a bad credit score in a relatively short period. This opens the door to numerous financing opportunities -- mortgage loans, auto loans and low-rate credit cards....

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How to Establish a Payment Plan With a Credit Card Company

No more than 15 to 20 percent of your monthly income should go toward credit card bills, according to the the University of New Hampshire Cooperative Extension website. When you find yourself overextended and unable to pay your creditors, you may try to make arrangements for a payment plan. Creditors have different policies in place for payment plans, and they are not obligated to agree to any payment plan. Credit history with the company and the...

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Does a Foreclosure Forgive the Debt?

If you fall behind on your mortgage payments, your lender will likely send you letters and make phone calls to urge you to bring your mortgage account current. Continuing to miss mortgage payments can place you at risk of default. If your mortgage company considers your account in default, it may take aggressive action against you, including foreclosure, which is the process of selling your home at an auction to recover the lenders' losses. Sometimes, foreclosure may not forgive the entire balance of your mortgage loan. Deficiency A lender...

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Does a Student Loan Forbearance Hurt Your Credit?

Graduating from school with a degree and a hefty student loan payment is a common occurrence nowadays. Loans are a viable option for financing your education, but repaying them can present a hardship, especially if you have rent, car expenses, utilities and other bills to pay. If making your student loan payments presents a hardship, requesting forbearance is one way to keep your account out of default and your credit intact. Definition of Forbearance Forbearance, according to the U.S. Department of Education, temporarily postpones or reduces...

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How to Raise My Credit Score After Late Payments

Your credit score is calculated using a variety of different criteria, such as how long you have had credit, the types of accounts you have and the amounts you owe on those accounts. The most crucial factor in calculating your credit score, however, is your payment history. Your payment history accounts for 35 percent of your credit score (See References 1). Missing a payment on a credit card or loan can do extensive damage to your credit score. If you have made late payments on any of your debts, there are steps to can take to raise your credit...

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How to Pay Bills When You Don't Have Enough Money

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How to Answer Interrogatories Regarding Debt

Consumers agree to repay any debt incurred. Failure to repay debt can result in legal action taken by the creditor. At some point during the legal proceedings, the creditor has the legal right to send you a list of questions that you are required to answer truthfully and completely. These questions are referred to as interrogatories. Failure to answer the interrogatories can result in a contempt charge from the court. Instructions 1 Review...

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Debt Acquisition Strategies

Debt acquisition is when you purchase debt from a lender so that the indebted party owes you. For example, a client may borrow money from a bank to purchase a home. You can acquire this debt by paying the bank so that now this client owes money to you. While buying and selling mortgages and other debts is a common practice, if you have no experience with debt acquisition you should familiarize yourself with risks. Asset Debt Asset debt is...

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Can Creditors Seize a Safe Deposit Box?

Although creditors typically limit collection activities for unpaid debts to phone calls and letters, a severely delinquent debt may invite more aggressive collection activity, particularly if you make no effort to resolve your debt. In some cases, collection may involve seizure of your personal assets, including valuables and cash kept in a safe deposit box. Obtaining a Judgment In most cases a creditor must obtain a valid judgment against you before seizing your personal assets. A creditor obtains a judgment by suing you in civil court,...

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Credit Report Conflicts

People make mistakes sometimes; that's why you should occasionally check your credit report for errors. The three credit bureaus -- Equifax, Experian and TransUnion -- all calculate your score a little differently. But they all use the same credit history reports, and if there's an error in your file, then your credit can suffer. Monitor Your Credit Report Order a copy of your credit report. Since the three credit bureaus will have slightly...

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