When Is a Judgment Placed on a Credit File?

A judgment is placed on a credit report, or file, after it is recorded in court records. Major credit bureaus such as TransUnion, Experian and Equifax subscribe regularly monitor court records and automatically add credit-related information to credit reports. The agencies review court records for judgments, bankruptcies, tax liens and more. Definition A judgment is a legal decision signed by a judge. The judgment requires you to pay a certain amount of money to a person or company that filed a lawsuit against you. Judgments are common...

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Old Debt Laws

An old debt that you forgot about years ago--maybe even from your college days--can pop up on your credit report at the most inopportune time. You may be coasting along with a great credit score in the 700s as you prepare to buy a new house. Then the old delinquent debt pops up and sinks your score. The only way to avoid situations like that is to pay your old debts, because legally debt collectors can chase delinquent debts for as long as it takes...

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Statute of Limitations in Ontario for Debt

The statute of limitations for debt collection, in both the United States and Canada, is the period of time during which a debt collector or creditor may file a lawsuit against a consumer for an overdue debt. After the statute of limitations expires, the debt becomes "time-barred" and the creditor loses the right to sue for the balance the consumer owes. Facts In Ontario, the statute of limitations for debt collection is two years. This law...

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How to Make an Anonymous Payment

Making an anonymous payment is not difficult, but may require some research and legwork. Getting the appropriate account to make the payment to is probably the most difficult task, because companies will not usually give you account information unless they are authorized to by the account holder. You must also remember not to use a check or credit card because they both leave paper trails. Cash is also risky because it requires you to either chance...

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Help for Debt Problems

According to the United States Federal Reserve, 45 percent of households in America spend more each month that what they earn. This cycle has created a debt problem for many American families, who are often unable to keep their heads above water. Getting out of debt, or even managing it, is difficult. It requires financial discipline and patience. Develop a Strict Budget Strict budgeting will usually take care of debt problems, provided they...

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I Co-Signed for a Student Loan: How Do I Eliminate the Loan?

Co-signing a student loan makes you fully liable to repay the full debt if the primary borrower fails to do so. The student loan account appears on your credit report and any mistakes on the part of the borrower, including missed payments, can hurt your credit score. In addition, lenders consider the monthly payment as one of your liabilities in your debt-to-income ratio, which can impair your ability to qualify for a mortgage or another type of large loan. There are a few ways to have yourself removed as a co-signer, but they all require the cooperation...

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Is It Possible to Get a Loan While Being Garnished?

Loan approvals are based on your credit history. While a wage garnishment does not appear on your credit history, the lawsuit preceding your wage garnishment does. This can affect your ability to get approved for a loan. The Facts If you stop paying down a debt, your creditor may sue you and request a wage garnishment. A portion of each paycheck will be withheld to pay the debt. Significance Any lawsuit that results in garnishment...

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Can I Negotiate a Medical Bill Turned Over to a Debt Collection Lawyer?

A medical debt turned over to a debt collections lawyer is a serious issue. Usually, many months or even years pass before the account reaches this point. The hospital or doctor's office tries to collect at first, with the account possibly languishing for a while before assignment to an attorney. Negotiations with the attorney are usually possible, but the attorney is not obligated to participate and could file a lawsuit for the entire amount. Obstacles Medical debt is unsecured debt -- the same as credit cards. No collateral is posted...

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Definition of Discharge of Debts

A discharge of debt occurs in a bankruptcy case, when the case is finalized and debts are legally terminated. There are specific federal laws governing the process and the behavior of debtors and creditors in handling discharged debt. Civil Actions The obligation to pay a debt can be enforced by a civil action in a court of law. A creditor can seize certain assets, if necessary, to satisfy the debt. Stay Filing for bankruptcy legally...

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How to Stop the IRS From Taking Money for a Student Loan I Am Paying On

Individuals often use student loans to pay for college, but one of the pitfalls of borrowing money before you complete your education is that you cannot be sure you will make enough in your career to pay it back. Most federal student loan programs work with borrowers to make this less of a concern. In some cases, though, student loans fall into default status because borrowers fail to make satisfactory payments on their loans. When this happens,...

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The Tax Consequences of Debt Settlements

Debt settlement is the process of negotiating with a creditor to settle your debt for a fraction of what you owe. By agreeing on a debt settlement amount, the creditor avoids the possibility that you will default on the full amount, and you get part of your debt forgiven in exchange for paying the rest. However, the Internal Revenue Service considers forgiven debt to be a form of income, so you may have to pay income tax on the amount your creditor...

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Can More Than One Company Garnish a Check?

Wage garnishments benefit creditors who wish to collect on an unpaid debt. Some debtors stop paying on loans or credit cards, which force creditors to take legal action in order to recover overdue funds. But while wage garnishments help creditors collect, there are limits to garnishing a debtor's wages. What is Wage Garnishment? Creditors who seek a wage garnishment approach the court in order to have a percentage of a debtor's income withheld from his check. If the court agrees to the wage garnishment, a sheriff approaches the debtor's...

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Is It Better to Pay Your Debt Off Through a Creditor?

Paying off a debt through the original creditor is usually a good idea but often is not possible. For example, the original creditor may refuse to accept payment for a delinquent account it has already placed with a debt collector. In some instances, the original creditor may refuse to even discuss the account, and instead refer the debtor to the debt collector. Timeline Creditors use internal collection teams to begin the collections process but eventually turn accounts over to debt collectors after collection efforts fail. The creditors...

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Negotiated Credit Card Debt & Tax Implications

The Internal Revenue Code considers the monetary amount of canceled debts to be taxable income, subject to certain exceptions and exclusions. The negotiated reduction of credit card debt is a type of canceled debt. The Internal Revenue Service (IRS) requires the creditor that reduces your credit card debt to report it on Form 1099-C. Canceled Debts Forgiven or canceled debt is considered to be taxable income. For example, if a debtor negotiates...

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What Is a Revolving Account on a Credit Report?

Each individual's credit report reflects his history of accruing and paying debt. When a consumer applies for a revolving account and is approved, his creditor will report the new account to the credit reporting agencies. The account's information will then update periodically on the individual's credit file as he makes new purchases and payments. Facts A revolving account is a line of credit with a pre-set credit limit. A borrower may make...

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Ways I Can Help My Credit

Good credit gives you access to lower interest rates on loans and reduces your overall payment throughout the life of the loan, thereby saving you money. It can also help you establish your level of responsibility when you are looking for a job or trying to rent an apartment. You can help your credit by remaining consistent with your bill payments and by managing your existing credit responsibly. Over time, your discipline will translate to better...

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Can a Cosigner's Wages Be Garnished?

While you may think you're doing someone a favor by cosigning on a loan or line of credit, you may be setting yourself up for financial failure. When you sign your name on the dotted line, you're guaranteeing the lender that you will be responsible for the debt if the primary borrower is unable to pay. In some cases, creditors may seek to garnish your bank account or wages for the unpaid debt. How a Garnishment Works To pursue garnishment...

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What Can You Do About New Credit Card Fees?

New credit card fees increase costs, raise your total debt and make credit more expensive to use, but you can limit your loss. New fees introduced by a credit card company often include an annual fee for being a cardholder and fees for not being an active credit card user, referred to as "inactivity" fees. Talk to the Credit Card Company You can contact the credit card company by phone and request the removal of a new annual fee or an inactivity fee you were charged. Some credit card companies will waive an inactivity fee or suspend an...

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How Much for a Credit Report & FICO Score?

The Fair Credit Reporting Act directs the nationwide credit reporting agencies to furnish you with one free copy of your credit report every 12 months, upon your request. You can work this option to your advantage by ordering one credit report several months apart from each of the bureaus, but note that your free reports will not include your credit scores. All three bureaus offer an add-on option to purchase your credit score when you obtain your...

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Military Debt Help

Military members' debt adds to the stress of deployments, frequent moves and training. The Servicemembers Civil Relief Act, Armed Forces Legal Assistance Office, Installation Support Centers, and Military Relief Organizations are valuable resources to help manage and get out of debt. Servicemembers Civil Relief Act (SCRA) SCRA helps deployed servicemembers and those entering the military or called to active duty. This law protects servicemembers...

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Everything You Need to Know About Liens

Liens are a tool used by creditors and government agencies to secure payment for any outstanding obligation. Liens allow the creditor to make a claim on property that the creditor can then sell in the event that a debtor is unwilling or unable to meet his obligations. Liens are also useful in prioritizing creditors in the event of a default. Effect of a Lien Liens prevent property from being sold by the owner. Because there is an additional interest in the property, the owner is now prevented from liquidating the property. Property...

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Can I Get a Grant to Pay Off My Credit Debt?

It's unlikely you will find a grant to pay off your credit card debt. As of 2011 there are no taxpayer-funded grants for paying off credit card debt, and no major foundations or nonprofit groups offering grants. The government can help indirectly by allowing you to eliminate credit card debt through bankruptcy, while nonprofit groups such as the Urban League and Salvation Army may offer workshops and classes on managing credit card debt. Alternatives Public and private money grants to pay off personal credit card debt are considered personal...

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Can a Creditor Put a Lien on My House?

Placing a lien on real estate is an option for many unsecured creditors. Provided the debtor's state of residence allows the practice, a creditor can record a lien against the individual's home--securing the previously unsecured debt and making payment more likely. Facts Unless the creditor is the federal government, it must sue the consumer in his local court and obtain a civil judgment before it has permission to record a property lien....

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Letter Explaining Credit Problems

Credit problems are generally a sore topic of discussion. However, if you are seeking a loan or an extension of new credit, your lender will need to clarify whether you are prepared to make timely monthly payments. A letter that describes your prior credit hurdles and the corrective actions that cleared your financial obstacles could explain derogatory marks on your credit report. Issues A credit letter should describe specific credit issues or challenges that impact your financial situation. Your credit issues may include past-due credit...

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How to Trade in a Car That Is Under Bankruptcy

Chapter 13 bankruptcy allows people to incur debt during the process --- including trading in a car. The courts have little choice because Chapter 13 takes so long to complete: three to five years, with debtors sometimes needing credit for necessities like reliable transportation to get to work. Car payments on a trade-in are an additional debt not covered by the Chapter 13 repayment plan. This means you must make your regular monthly payment to the bankruptcy court and also make a separate payment for the trade in. If you fail to make the car...

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How to Transfer Money Using a Credit Card into Your Bank Account

Money transfers used to be time consuming and expensive due to the detailed involvement of a bank having to wire money. If you're in a situation where you need to transfer money using a credit card into your bank account, you can transfer online, use an online service such as PayPal or an ATM machine. Instructions Transfer Online 1 Visit your online banking website and inquire about transferring money using your credit card. Many online banks...

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Unsecured Debt Settlement Vs. Bankruptcy

Unsecured debts, such as medical bills and credit card debts, are not directly tied to your assets. Through debt settlement, an unsecured creditor accepts only a portion of the debt you owe as payment for the full balance. Bankruptcy either wipes away your obligation to your unsecured debts or requires you to pay them off via a payment plan. Which solution is best for you, however, depends upon your circumstances. Applicability Debt settlement programs only apply to the creditor with which you negotiate the settlement. Not all creditors...

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Can a Merchant Sue You for a Chargeback?

Consumers who dispute a credit card charge can open a file with their card issuer. When the credit card company rules in favor of the customer, the merchant for the disputed charge will be debited for funds already paid. This process is called a "chargeback." Despite the card company's finding in favor of the card holder, however, the card holder isn't entirely in the clear -- the merchant usually retains the right to sue. Chargebacks When a credit card company finds ample cause to reverse a paid credit transaction -- reasons can range...

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Do Debt Collectors Need a Signed Contract From the Lender in a Repo Lawsuit?

If you can no longer afford your car payments, losing the vehicle to repossession isn't always the end of your financial woes. You are legally responsible for paying off the loan balance you originally agreed to. If your lender is unable to sell your repossessed car for what you owe, it will pursue you for the difference between the sale price and your remaining debt. Leaving this deficiency unpaid often results in the lender turning the debt over...

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Allocation of Debts Among Beneficiaries

When an individual dies, one of the main questions his family member may have is who is responsible for his outstanding debts. Fortunately, debts may only be allocated to the individual's beneficiaries in certain circumstances. Facts Unlike assets, debts are not typically inherited by family members when an individual dies. If the deceased individual is the only person legally responsible for paying the debts, they may not get paid at all....

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How Does a Judgment I Have in Minnesota Work?

Like other states, Minnesota allows you to collect on unpaid debts by filing a judgment against the debtor. A judgment doesn't automatically produce the money; it may take a lot of work on your part to locate the debtor's assets and file a lien -- a claim on the assets -- that meets Minnesota law. Courts In Minnesota you can file for a judgment -- a court decision that someone owes you money -- in either district court or small claims court; the latter is known in Minnesota as a conciliation court. Conciliation courts allow you to file...

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Canada Credit Card Consolidation Ideas

The average Canadian adult had more than CDN $40,000 in household credit by the end of the third quarter of 2009, according to Bankruptcy Canada. The household credit includes credit cards, bank loans, and mortgages. Bankruptcy Canada pointed out that in the year 2000, each Canadian had approximately CDN $20,000 in debt, so the amount has doubled in less than a decade. If you are among those Canadians who are carrying a high amount of debt, and you...

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How to Obtain Lease Residuals

When you lease a vehicle, you reduce its value by using it over time. To calculate the loss of vehicle value during a lease term, vehicle lessors use residual value. Also known as lease-end value, residual value refers to the value of the vehicle at the end of the lease term. The lessor uses this value to determine the amount of payments you make each month and the amount you need to pay if you want to buy the vehicle at the end of the lease term....

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How Can I Report Harassing Credit Collection Calls?

Credit collection agencies sometimes use illegal tactics, such as repeatedly calling or threatening jail time over a debt, but you can report the agency to the Federal Trade Commission and the state attorney general's office. The Fair Debt Collection Practices Act forbids collection agencies from using abusive or harassing techniques to collect money. For example, a collection agency cannot call you repeatedly at work when told not to or call you repeatedly on the same day. Instructions 1 Keep a log of dates and times the credit collectors...

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How to Group Debt

As you accumulate more debt, it can become difficult to manage. If you have multiple obligations to numerous creditors, it can be difficult to keep track of payments and due dates. When this happens, you run the risk of becoming delinquent and harming your credit. One technique to avoid this is to group or categorize your debts. Grouping your debt will make it easier to track, maintain, reduce and eliminate. Instructions 1 Compile a list of all your debts. List the creditor, the type of debt and the balance owed. 2 Group real estate...

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Are You Responsible for Your Parents' Debt?

By the year 2020, according to the US Census Bureau, the population of 65 and older is projected to be over 54 million. As the general American population ages, many children will inherit their parents' savings and other will inherit their parents' debt. Who will pay for those debts is a question hanging over survivors' heads and, while you are not legally required to pay those debts, you do have responsibilities when your parents die. Your Debt...

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How Does Debt Consolidation Affect Your Credit?

Consumers that are considering debt consolidation should also be asking about the consequences of debt consolidation on their credit scores. By the time a consumer is considering consolidation, credit payments have been late or the consumer is behind by a month or more on payments. The negative effect of missing credit payments on a credit report is widely known. But consumers should also understand how debt consolidation can affect a credit score...

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What Do Debt Companies Do for You?

Debt companies offer financial relief for individuals with outstanding or delinquent debts. Two popular debt-help programs are debt consolidation loans (combining multiple debts into one loan) and debt management programs (lowering monthly payments to creditors). Consult with a financial advisor or credit counselor to evaluate the best option for you. Consolidation The focus for most debt companies is to lower monthly bills and combine debts into one payment. This provides immediate financial relief for the consumer. However, this may require...

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Can I Be Sued for Walking Away From a Mortgage?

If your mortgage payments have become unmanageable, you may be thinking about simply walking away from your mortgage and abandoning your home instead of working with your mortgage lender to bring your account current. However, walking away from your mortgage can result in severe negative consequences, including a lawsuit initiated by your mortgage lender. Foreclosure Walking away from your mortgage typically involves ignoring letters and phone calls from your mortgage lender, which demonstrates that you have no intention of bringing your...

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