Debt Settlement Laws

An excessive amount of debt can lead to a settlement offer, in which you agree to pay a lump-sum amount to a creditor, who writes off the rest of the debt. Settlements typically are between 20 percent and 75 percent of the balance. Taxable Income If you settle your credit card debt, you might be required to report the amount that's forgiven as taxable income. For example, if you settle a credit card balance of $8,000 for $5,000, you might have to report the remaining $3,000 as taxable income. Insolvent According to the IRS, if you...

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How to Fix Collections on Your Credit

Many people struggle with collections on their credit reports and the challenge in fixing, removing and rebuilding their credit seems impossible. Until you fix your credit, you may have a hard time getting loans, or getting low interest rates on loans. There are several tested procedures used by credit repair specialists that you can use to fix collections on your credit. Instructions Prepare for Negotiations 1 Request a current credit report for the year to review collection account details including debt owed, date reported, contact information...

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Government Grants for Debt Assistance

Economic difficulties, including injury and illness, could force you into debt that becomes a crushing burden. Most people try to pay off the debt as best as they can, sometimes seeking assistance from family and friends; others decide to file for bankruptcy. However, under certain circumstances the federal government can provide assistance through a grant, low interest loan or other programs that can reduce or eliminate your debt load. Finding a Source of Assistance Identify the government department that might have a grant or assistance...

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How to Avoid Excessive Debit

Developing a reasonable budget and sticking with it is one of the best ways to avoid excessive debt, according to the Federal Trade Commission. People who buy on impulse and live paycheck to paycheck risk building excessive debt. An unexpected major repair, job loss or illness can lead to overspending on credit cards and a mountain of debt that could lead to bankruptcy. Spending conservatively while saving as much money as possible helps avoid financial problems. Instructions 1 Avoid paying for purchases with cash or debit cards whenever...

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Does Child Support Seize My Tax Refund?

When it comes to overdue child support payments, the government does not fool around. Creditors are not allowed to take your tax refund check directly from the government, but if you owe money for child support, the government makes an exception to this rule. Moreover, other assets you own and benefits owed to you can also be taken to make up for your late child support payments. Tax Refund Check Garnishment If you are in arrears on your...

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What Are Assets in a Judgment?

With many Americans struggling with debt as of 2011, judgments against debtors happen on a daily basis. When this happens, a judge gives an award to your creditors, who are able to use some of your assets to collect what you owe. However, creditors can't simply waltz into your home and take whatever they like --regulations specify what a creditor can try to seize. Items Available as Assets In the broadest scope, assets in a judgment may...

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How to Appeal to a Collection Agency to Deal

Effectively negotiating with a collection agency to clear or reduce a debt will depend on your ability to negotiate, your ability to pay and your knowledge of collections laws. Knowing your financial situation and how much you can actually afford to pay each month, as well as what the agency expects to collect, will give you an edge for negotiating the best deal for yourself. You need to be as confident and knowledgeable as the agency that wants...

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Cosigner's Rights & Responsibilities

When a borrower applies for a loan or credit, lenders check the borrower's credit score to assess the likelihood that he will fail to make payments on the debt. Borrowers may have poor credit scores for a variety of reasons, such as having a short credit history, a track record of missing debt payments or a past bankruptcy, which can make it difficult to get approved for new debt. Loan co-signing is a process where a third party agrees to pay for a debt if the primary borrower fails to pay. Co-Signing Basics Lenders may be willing to approve...

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Can a Grandchild Inherit a Grandparent's Debt?

After a relative dies, there is often a lot of paperwork to sort through. If you discover that a grandparent died while in debt, you need to forward any bills, promissory notes or contracts to the state executor. You are not responsible for paying the debt, but the grandparent's creditors have a right to compensation from your grandparent's estate. No Inherited Debt In the United States, debt is not inheritable. If your grandparents die while in debt, it is up to their creditors to try to secure payment from their estate. You are not required...

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How to Break a Contract With Credit Solutions

Credit Solutions is a debt settlement company. They will contact your creditors and make settlement offers anywhere from 20 to 50 percent of your total outstanding debt. The fee charged is 15 percent of your total outstanding debt. There is no contract but there is an agreement that you sign. There is a process to complete if you want to cancel the agreement. You will not be penalized or subjected to any type of fee when you cancel. Credit Solutions does not waive fees such as late charges and they do not negotiate a lower interest rate for you....

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Does Loan Preapproval Affect a FICO Score?

Before shopping for a home, prospective home owners often visit one or more lenders and obtain a letter of preapproval for a home loan. A lender preapproves a home buyer after examining the prospective borrower's finances and credit history and determining the terms under which he would would issue them a loan. A loan preapproval itself does not affect the borrower's credit score, but a credit check run before the preapproval likely will drop the score by a few points. Preapproved Loans Preapproved loans are sought by prospective buyers...

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Guidelines for Debt Issues

It's easy to rack up debts without thinking about how much debt actually costs and how long it takes to pay off balances. Not having a debt-management plan can lock you into paying high-interest credit cards and loans for years. At times, it may be worthwhile to abandon conventional wisdom about savings and investments to reduce a debt load. Credit Cards The order in which you pay off credit-card debt can help you save money in the long run. There's more immediate gratification in paying off the card with the lowest balance first because...

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How Long Until Debt Clears?

Debt is seldom a good thing, because it reduces the amount of disposable income you have for financial emergencies and makes you less financially stable. However, proper debt management, along with state regulations, usually help your debt clear. How long it takes for this to happen varies according to your state, the type of debt, the debt management techniques you use and the amount of the debt. General Guide Regulations regarding how long you can be sued for a debt vary based on your state as well as the type of debt. It is possible...

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Debt Repayment Methods

Personal debt, whether it be in the form of credit card debt, student loans or bank loans, is a huge problem in the United States. Students are borrowing thousands of dollars to pay the cost of tuition with no guarantee of finding a job after graduation and many under- and unemployed Americans use credit cards regularly just to get by. For those who already have debt and are in a position to start paying the money back, there are a few methods...

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Can You Be Sued for Unpaid Credit Cards?

If you are overwhelmed by credit card debt, you should be aware that you can be sued by credit card companies. After a creditor wins its lawsuit, it can take steps to collect its judgment, including wage garnishment, asset seizure and property liens. Lawsuits A creditor has the option of suing to collect a debt, provided it does so within the statute of limitations for filing a lawsuit in your state. Each state sets its own statute of limitations...

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Can You Garnish on Credit Card Debt in Nevada?

When a person takes out a credit card, allowing him to make loans against a line of credit, he runs the risk of incurring steep penalties and fees if he fails to pay the loans on time. When this happens, the person may find himself up to his neck in debt, at which point he may face severe collection actions from his lender. In Nevada, this can include garnishment. Credit Card Debt A loan made against a credit card constitutes a legally binding debt obligation incurred by the borrower. The borrower must pay this money back within the time...

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Can a Credit Card Company Sue Me if I Can't Pay?

When a borrower does not pay back their loans on time, a credit card company has a number of options to try to secure repayment. These include filing suit against the borrower, even if the borrower is indigent. Features Credit card companies are legally allowed to seek payment in a court of law. According to the Home Buying Institute, this can be done by bringing a petition to a judge demanding that the borrower make good on his debt. After...

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Can You Get Off a Note That You Co-Signed?

Getting off a note that you co-signed is difficult, but there are some options. A note requiring a co-signer is a loan. Young adults finishing college sometimes purchase their first new car with an automobile loan co-signed by one of their parents. Other people qualify for home mortgages with the help of a co-signer. Lenders usually require co-signers only for people with poor credit or those who have yet to establish an acceptable credit history. Responsibility Co-signers assume complete responsibility for the loan if the primary borrower...

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Do Credit Card Debt Programs Really Work?

Many consumers find themselves knee-deep in debt and unable to get a handle on their personal finances. Several debt repayment programs exist to help consumers get free from debt. Some programs, such as credit counseling, help consumers repay the debts themselves. Other programs, such as debt settlement and bankruptcy, allow consumers to settle their debts for less than what they owe. All debt programs work to some degree. Credit Counseling Debt counseling services help consumers create payment plans to pay off their debt. For a fee, the...

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How to Contest Your Credit Score

Inaccurate information on your credit report can be a major concern, especially when it affects your credit score. Even when a debt has been paid, a company may still report it as unpaid to one of the three major credit bureaus. Also, a collection agency may not always report that a debt was paid. Contacting the credit bureaus to get your credit score corrected can take a little time, but the process is very simple. Instructions 1 Pull your credit reports from the three major credit bureaus (TransUnion, Equifax and Experian) and examine...

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Credit to Debt Ratios

Understanding how debt is viewed by creditors and how it affects your credit limits can help you maintain a good credit score. Credit score calculations aren't only affected by whether consumers pay their bills on time. The calculations also weigh consumers' credit card balances against their total available credit. Significance The credit utilization ratio can affect how much credit companies make available to you. The ratio is expressed as a percentage and is calculated through dividing the amount owed on all credit cards by the total...

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Credit Debt Help Online

Having too much credit card debt is a scary and powerless feeling. No matter how you look at your situation, you have a long way to go before you can be debt-free. Fortunately, there are some resources on the Internet that can help you. They won't get you out of debt overnight, but they can at least help you realize you're not alone; they can also help get you on the road to recovery. Online Support Use the Internet to find people who are in the same debt situation. Online forums, blogs and message boards help you see that you're not the...

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How to Create a Personal Budget Sample

A viable personal budget is essential to the success of any financial plan. By developing a sample budget, you can make timely bill payments, avoid loan default and set money aside to build your net worth. Before creating a personal budget sample, you should first outline your financial goals. With financial goals in place, you can make savings projections and balance risks versus rewards against each other when putting together an investment portfolio. Instructions 1 Define your financial goals. Common financial goals include saving up...

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How to Get Middle Credit Score

The three major credit bureaus are Equifax, Experian and TransUnion. Each of them will issue a credit score to consumers. Credit data varies among the bureaus. Their data is based on proprietary information that is used to generate credit scores. To keep a level playing field, banks, credit card issuers and most lending institutions will utilize a consumer's middle credit score. The middle credit score is used to represent the average credit score from the major credit bureaus. Instructions 1 Conduct a search online for Equifax. Contact...

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How Long Does an Abstract of Judgment Place a Lien on the Debtor's Real Property?

A property lien is a court judgment entitling a creditor to a share of the profits from the sale of a debtor's attached real property. The court may grant a creditor the right to attach a variety of assets including a home, place of business or automobile. The statute of limitations for a property lien judgment varies by state and can usually be quite lengthy. State Judgment Laws Each state sets its own statute of limitations for creditors collecting on court judgments. Property liens usually follow this variable statute of limitations...

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What Are the Three Credit Bureau Companies?

There are three main credit bureau companies that determine your credit score. Each month, these three companies rely on information reported to them from your creditors to compile a credit report. However, credit bureaus offer more than just a compilation of credit history. The overall goal of each credit bureau is to provide tools to help businesses manage customer relationships more effectively. Experian Experian operates in more than 40 countries around the world. In addition to assessing the credit risk of a consumer, the company also...

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How to Build Credit in Canada

Establishing good credit is important to many Canadians. Many factors can affect your credit status, such as, paying bills on time, credit card balances, etc. Many people are faced with trying to build their credit from a lack of credit or trying to increase their credit score. Even if you are lacking credit, there are several steps that you can take to build it. Instructions 1 Check a current copy of your credit report. Order a copy of your...

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About Consolidated Loans

In today's economy, debt consolidation has become very popular. The rate of people opting to consolidate their loans is growing. A consolidated loan, usually from a debt consolidation company but sometimes from a local bank, is used to pay off unsecured debts. It takes multiple debts from creditors and turns it into one debt that is to be paid off to the lending company. Function Consolidated loans have long been seen as a viable alternative to paying back individual debts. Consolidated loan companies will work with an individual's credit...

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Debt Consolidation for Disabled Fixed Income Families

Debt consolidation can relieve some borrowers of the overwhelming burden of high-interest debt. It can also be a psychological victory as it gives borrowers a sense of control back. However, borrowers with fixed incomes may have trouble finding lenders to consolidate their debt. This problem is compounded if the only income coming in is from the government--such as Supplemental Security Income or disability payments. If you have disability money...

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Indiana Unemployment Questions

The Indiana Department of Workforce Development manages unemployment insurance benefits programs for the state. Income assistance is available for people who have lost their jobs through no fault of their own or are no longer earning money after being self-employed. State unemployment offices, called WorkOne Centers, are located throughout the state (see Resources for a link). Representatives at WorkOne Centers can help determine if you are eligible for benefits. How Much Can I Receive in Benefits? As of 2010, people qualifying for unemployment...

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How to Get a "Deed-in-Lieu of" After Bankruptcy

A deed-in-lieu of foreclosure is an agreement to turn over real estate to a mortgage company. People seeking the arrangement usually are facing foreclosure because of missed mortgage payments, or cannot sell their home because it is worth less than the balance on the loan---a situation known as being "upside-down" on the mortgage. A discharged, or completed, bankruptcy should not affect discussions for a deed-in-lieu agreement. Many people with in bankruptcy choose to allow foreclosure during the bankruptcy as they restructure or eliminate debt....

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When Is it Smart to Get a Consolidation Loan?

Consolidation loans represent a kind of "bundled loan" in which debtors combine several outstanding loan debts into one convenient monthly payment. Consolidation loans can help debtors stay current on their payments, but not always at a favorable interest rate. Likely Prospects Consolidation loans can help debtors who tend to fall behind on payments because they have difficulty keeping up with the various payment due dates. Consolidation loans may also prove an attractive option for people who have debts with uncomfortably high interest...

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Are Rent Arrears Cleared by Bankruptcy?

Rent that is past due, or in arrears, is not cleared by bankruptcy unless you decide to leave the apartment or rental home and move on. Bankruptcy stops eviction but only temporarily in some cases. Eventually you will be evicted if you fail to pay the landlord. Some people with legitimate financial problems use bankruptcy to avoid being tossed out as they look for ways to pay past-due rent. Others manipulate the system by using bankruptcy to avoid eviction as they look for another place to stay. The Automatic Stay A legal injunction in...

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Benefits of Loan Consolidation

Loan consolidation is an option for people who are trying to simplify their bills and reduce their monthly financial obligations. There is a great deal of information available about loan consolidation, but here is a closer look at its real benefits. Reduce the Number of Payments If you have loans for such things as your car, college tuition and credit cards, it may be difficult to keep track of all of those payments every month. When you have many different debts to pay, it is possible to forget to make certain payments each month. When...

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What Are Consumer Credit Needs?

People's credit needs are partly based on how well they manage their credit card accounts and the way they intend to use their cards. Some businesses require customers to submit a credit card in exchange for their services. However, mismanaging your cards can damage your credit rating and prevent you from getting loans and other credit accounts. Multiple Credit Cards According to Bankrate, U.S. consumers appear to be almost evenly divided...

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How to Find Scholarships for Minority Women

Scholarships are a good way to help keep the personal cost of an education down and to help students avoid taking out loans. There are hundreds of scholarships available if you know where to look. Many, but not all, of these require that the applicant meet certain criteria, such as being a specific gender, religion or minority. If you're a woman and an ethnic minority, you may qualify for a number of scholarships. Instructions 1 Perform a...

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Questions to Ask a Credit Counseling Agency

Credit counseling agencies are companies that offer you advice on how to manage your money and debts more efficiently. They help you to organize your budget in a way that will fit your way of life and monthly payments. Credit counselors receive proper training and certification in these areas. They also help you develop a personalized plan to get out of debt. Credit counseling is a requirement for those who intend to file for bankruptcy. Services One of the first questions you should ask a credit counseling agency is which services they...

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What Happens If You Can't Repay a Payday Loan?

As a working consumer, you can sometimes find yourself in need of cash prior to the next payday. Depending upon your financial situation, it may not be possible to get a traditional loan from a bank. Payday loans can fill the void, but it's prudent to understand what can happen if you don't repay the loan. Identification A payday loan is a short-term cash advance issued by a payday lender that consumers take out against a future paycheck. Consumers must have a job and a checking account and present a paycheck stub to qualify. With a payday...

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