Understanding Remission of Debt

The government, most businesses and institutions allow for remission of debt due to extenuating circumstances. Remission is defined as lessening the intensity, forgiveness or complete pardon. To forgive a liability either in whole or in part can be considered a remission of debt. Generally, this is done when unusual circumstances are involved. A lendee that is injured or killed may have her debts placed in remission rather than placed upon next of...

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Statute of Limitations on Garnishing Wages for a Collection

Each state sets its own statute of limitations for wage garnishment. A few states do not allow wage garnishment, while others allow creditors to collect debts for different periods of time depending on the type of debt the debtor owes. Wage garnishment can seriously interfere with your financial health, so you should attempt to settle the debt with your creditor rather than accepting garnishment. Meaning The statute of limitations is the amount of time the creditor has to use the court system to obtain a judgment against you and take action...

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Does Paying Bill Collectors Raise Your Credit?

Paying bill collectors is good for your credit -- but don't expect an immediate improvement in your credit score. Credit scores range from 350 to 850, with scores of 720 or higher considered excellent. People with lots of late payments on their credit report, along with charge-offs and collection accounts, usually have poorer scores -- 620 or lower. Paying a delinquent bill to a bill collector will not immediately reverse the damage from all the...

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How Debt Management Plans Can Help You

If you're struggling with unmanageable levels of personal debt and have exhausted all other avenues, a debt management plan might be the option for you if you're eager to avoid bankruptcy. Although a debt management plan should not be entered in to lightly--accepting one can seriously damage your credit score--it may give you the breathing space you need to get your financial affairs in order. You should only enter into a debt management plan with...

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How to Get Student Loans Out of Default

Student loans typically go into default after 270 days of non-payment. Once default occurs, the lender has the right to request full loan payoff and can begin collection procedures, including reporting the default on your credit report, wage garnishment, the seizure of federal tax returns and denial of federal student aid. However, borrowers can go through a process called rehabilitation to bring them out of default. You do not have to meet any...

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Debt Relief for Seniors & the Disabled

Seniors and the disabled have few special options for debt relief, although they are eligible for more hardship and disability exceptions if they file for personal bankruptcy. Student loans and other bankruptcy-exempt debts if a judge deems that an individual is permanently disabled and unable to service their debts. Seniors are also likely to be eligible for certain kinds of medical debt relief such, as charity care. Negotiating Debts Many seniors are living off savings or fixed income, so they have limited opportunities for increasing...

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How to Respond to a Garnishment

A garnishment order allows a creditor to take money from your primary sources of income and bank accounts to satisfy a debt. The creditor must go to court and receive a money judgment against you to garnish your wages unless the creditor has special status, such as a child support agency. Federal law limits most wage garnishments to 25 percent of your income after taxes, but for items like owed child support, up to 60 percent of your net income may be taken. Instructions 1 Contact the creditor garnishing your income. Verify the debt amount...

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How to Dispute Credit Debt

When a collection agency contacts you in error, or you see a charge on a statement that is not yours, your first reaction may be to panic. But the agency may have posted a charge to the wrong account. Or, a debt buyer may have bought the account, and may now be trying to collect from anyone--even someone with a similar name. The debt buyer may have paid as little as 25 cents per $100 balance, and if he can convince you to pay even a small amount,...

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Credit Card Consolidation Programs

Credit card consolidation may occur through a consolidation loan program or through a debt management plan by way of a credit counseling program. Both of these methods eliminate multiple payments, allowing you to make one monthly payment each month. You must understand the differences between the two, however, as well as the effect that these programs will have on your credit report to make a choice. Consolidation Loans Usually, a consolidation...

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How to Pay Off Old Debt on a Credit Report

When applying for any type of loan, your credit report is pulled. Listed on your credit report is every loan that you have had in the past in addition to any collections, liens, or judgments that have been filed against you. If the lines of credit are still open, they will appear on your report. If the lines of credit have been closed, they usually removed from your credit report after seven years. If there is negative debt on your credit bureau, it needs to be removed. Instructions 1 Check your credit on all three bureaus: Experian, EquiFax...

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Can a Civil Service Retirement Account Be Garnished for Debt?

Although debt collectors are infamous for their nonstop telephone calls and frequent letters, they are not restricted to procuring payments only from those who send them voluntarily. If a creditor takes legal action against you and the court sides with your creditor, the judge issues the creditor a money judgment. Your creditor can then use its money judgment to seize certain assets and forms of income. Garnishment Exemption A creditor can...

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Is a Wife's Debt Yours Too?

When a couple agrees to marry, it is assumed they will shoulder each other's burdens and support each other. However, in the eyes of the law, when it comes to finances, a husband usually isn't responsible for carrying his wife's debt. Likewise, a wife typically is not bound to the debt her husband carries. Regulations on this issue, however, are not consistent across the United States. Separate Property States Whether a creditor can come...

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Credit Card Debt Elimination Scams

The news is full of stories of foreclosures, rising credit card rates and huge lay-offs. People are struggling to pay their bills. Creditors are calling, expecting people to forgo paying rent in order to pay their monthly payments. Meanwhile, late fees are mounting. This precarious financial scene is the perfect opportunity for vultures and scammers to swoop in and offer to help eliminate or manage your debt. But are they actually offering help,...

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Can a Lawyer Take My Car Over Outstanding Debt?

If you owe money to a creditor, his options for collecting the debt are limited by the type of debt you owe. Most debts are not secured by property, so the creditor cannot take any of your property, even if he sues you for the amount of the debt. If your creditor's lawyer or a debt collector threatens to take your car, contact an attorney -- it is against the law for creditors to make empty threats when attempting to collect a debt. Secured Debts Some debts are secured by property. For example, if you take out a loan to purchase a vehicle,...

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How to Vacate a Judgment to Get It Off Your Credit

Court judgments cause significant damage to your credit report. If a creditor got a default judgment against you because you weren't present at a court hearing, you may be able to vacate the judgment and have it removed from your credit report. However, just because a judgment is vacated does not mean that your creditor's case against you is dismissed: You'll still have to show up in court and defend the case. If you lose, the judgment can end up back on your report. Consult with a lawyer about any legal matter, even if you plan to represent yourself...

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Rules About Paying Your Credit Card Bill That Your Creditors Don't Want You to Know

Consumers owe over $800 billion dollars in credit card debt, according to a March 2010 Federal Reserve report. That's a lot of 100 dollar bills. And navigating the ever expanding clauses, stipulations and legalese of credit card contracts can tax even most dedicated debt-reduction warrior. But there's a simpler way: work within the rules. The Credit Card Accountability, Responsibility and Disclosure Act of 2009 enforces protections against sneaky...

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How to Pay Your Bill for Dish Network Online

You have enjoyed your month's worth of Dish Network satellite service and now it is time to make a payment. One of the easiest ways to make a payment is by making an online payment on the Dish Network website. Not only will you save time, gas and energy by making your payment at Dish Network's website, but you be certain that your payment has arrived safely and on time. Instructions 1 Gather important information. To pay your Dish Network...

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Can a Debt Collection Agency Access a Relative's Credit Reports?

When a creditor fails to receive repayment of a debt, it will often choose to hire a collection agency to attempt to receive payment, usually by paying the agency a portion of the money it successfully collects. This collection agency may attempt to secure repayment in different ways, such as contacting the debtor or suing him in civil court. In addition, the agency may choose to examine the debtor's credit report. However, it cannot legally access the debtor's relatives' reports. Credit Report Credit reports are documents held by credit...

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Define Household Debt

Household debt is the total consumer debt that the people in a single household have accrued. It includes mortgage debt in addition to credit card debt, car loans, student loans and other outstanding non-business loans. Over the past two decades, household debt has risen substantially in many developed countries, even as household income has remained steady or even declined. Mortgage Debt Guy Debelle, author of "Household Debt and the Macroeconomy,"...

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Options to Decrease Debt

Whether it be due to loss of a job or just plain overspending, debt levels can easily start increasing, especially when interest charges and fees get tacked on. Fortunately, there are ways to get out from underneath the crushing burden of debt and most approaches, while simple in practice, require discipline and commitment toward the goal of becoming debt-free. Reduce Spending The most logical way to reduce your amount of credit card debt is to significantly lower your spending and stop putting new charges on your credit cards. Establish...

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How to Find Non Chexsystems Banks Free

Finding non chexsystems banks can be difficult, especially when around 80 percent of banks use the consumer reporting system. Hundreds of sites claim to offer "lists" of non chexsystems banks, some for hundreds of dollars. Luckily, there are several ways you can go about finding this information for yourself, for free. Learn how to find out which non chexsystems banks are available in your specific area, without paying a dime. Instructions 1...

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How to Protect My Money From Garnishment

Garnishment happens when you owe a creditor money, have ceased to make payments and are not communicating with collectors. Creditors can obtain a judgment against you and by court order can seize money to pay off debts owed. They are not required to give you notice prior to the seizure and as a result you could see money disappearing from your bank account. While there is no real escape from debt save for making routine payments, some strategies...

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How to Refinance Unsecured Debts

Unsecured debts are those not backed by any collateral. The most common type of unsecured debt is credit card debt. However, personal loans and small lines of credit can be unsecured as well. Refinancing unsecured debt can be a risky proposition due to fees. However, refinancing into a lower-interest account can be financially beneficial. Instructions 1 Attempt to secure a lower rate and payment with your current lender before refinancing. Simply ask your creditor for a lower rate--you may just get it. Creditors are in fierce competition...

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Credit Counseling or Debit Relief: Which Is Best?

If you're faced with an overwhelming amount of credit card debt that you can't handle yourself, you have two main options that can help you to avoid bankruptcy. Credit counseling and debt relief share the goal of getting you out of debt, but go about achieving this goal in completely different ways. The difference between those two ways has a great deal of impact on your credit, both short-term and long-term. Credit Counseling When you go for credit counseling, it's a sign that you're unable to keep up with your current debt load. However,...

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Can a Bank Garnish My Wages?

One of the most serious methods of debt collection used by debt collectors is wage garnishment. A creditor may choose to collect on a debt by filing a lawsuit against the debtor and then asking the judge to grant him a motion that will allow him to divert money from the debtor's paycheck. A bank can also do this if a person owes money from a checking account. Bank Accounts A person may get into debt with his bank in a number of ways. One of the most common is to overdraw money from his checking account. According to the contract that the...

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What to Offer a Collection Agency for a Student Loan

If you stop making payments on your student loans without first getting a forbearance or deferral from your student loan lender, the lender could assign the loans to a collection agency. When that happens, you may be required to pay back the full amount of the loan, plus extra collection costs and late fees. However, there is sometimes room for negotiation. Total Amount Due The first thing to do is to find out the total you owe the collection agency. This is likely to be a different and higher amount than you originally owed the student...

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How to Tackle Bills That Are Turned Over to a Collection Agency & Are on My Credit Report

Once a creditor turns your bill over to a collection agency, your credit score takes a big hit. Your debt will appear twice on your credit report, once as the charged-off account with your original creditor and then as an account with the collection agency. If you owe the debt, and want to save your credit, try working with the collection agency to settle or pay the debt as quickly as possible. Collection Agencies Collection agencies specialize in collecting debts from consumers and businesses. Some collection agencies work on behalf of...

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Indiana's Law on Time-Barred Debts

A time-barred debt is a debt that has a time limit for how long a creditor can sue you for nonpayment. This time limit is known as a statute of limitations. Indianas law on time-barred debts is laid out on the Indiana government's website. Types Time-barred debts are divided in four categories, and each of these categories often has its own statute of limitations determined by the state. The four categories are oral and written contracts,...

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Can You Borrow Money Against a Trust?

A trust account is a legal instrument that one person puts in place to hold funds until, upon his death, they go to the named beneficiary. Trusts can also be used as a savings account, as some trusts allow the owner or beneficiary to borrower from them before their maturity. Types Not all trust funds allow a user to borrow from them. Some types of trust funds that do allow a user or beneficiary to borrow money from the account are: discretionary...

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Facts About Debt Settlement

Debt settlement can be tempting if you find yourself tens of thousands of dollars in debt, with no foreseeable way to pay it. But debt settlement may not be the right way for you to reduce your debt. Function Debt settlement is the practice of allowing a consumer to pay a portion of a debt, usually less than 50 percent of the total. The creditor reports the debt as settled, with a zero balance. Types You can negotiate your own settlement, but creditors likely won't talk to you until you are several months behind in your payments....

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Am I Responsible for a Credit Card Debt Under My Husband's Name?

Money is a major concern for most couples; however, if one spouse is routinely irresponsible financially, the worry may extend further than marital strife---the responsible spouse may be in danger of losing her wages and property, too. Whether or not you're responsible for your spouse's debt depends on the type of debt, the type of account and your home state. In some states, even if your finances and taxes are completely separate, you are responsible...

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Risks of Filing Foreclosure

Foreclosure presents many risks. It is not possible to "file" for foreclosure, although some people voluntarily walk away from their homes through what is known as a strategic default. Strategic defaults occur when people weigh the pros and cons of foreclosure and decide to walk away even if they are capable of making the payments. They may be unhappy with the neighborhood or disappointed that their home has dramatically declined in value. Some homes purchased at inflated prices during a strong economy can lose a third or even half their value...

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Medical Debt Responsibilities

Medical costs and medical debt are one of the largest causes of bankruptcy in America, says bills.com. The high cost of health care is a significant portion of the problem. However, loss of income during recovery also adds stress to a family's financial state. The problems worsen for those that are not insured, under-insured or have claims denied. Understanding a few facts about medical debt responsibility can help avoid some of these situations....

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Can You Get a Money Loan on a Prepaid Visa Without a Direct Deposit?

In addition to credit cards, the financial services company Visa also offers prepaid cards. These prepaid cards function somewhat like a debit card linked to a checking account. A person is allowed to place money on the card and then make purchases with it at any place that Visa cards are accepted. However, unlike a credit card, a person cannot loan money with a prepaid card. Prepaid Cards A person is allowed to place money on his prepaid Visa card in a number of ways, including by depositing cash at select locations or transferring money...

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How to Pay & Fix My Credit

You can pay off delinquent debts and improve your credit scores--but don't expect a quick fix. Cleaning up credit problems takes time. Negative information can remain on your credit reports for up to seven years, even if you've paid the debts. So-called credit repair firms may boast that they can quickly fix your credit, but the Federal Trade Commission says the companies often make promises they cannot deliver, and that you should repair your own...

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