How to Build Your Credit After a Job Loss & Bankrupcy

Rebuilding your credit after a job loss and bankruptcy may be less difficult than you think. According to Microsoft Money, many people bounce back quickly after bankruptcy. They can get new credit cards almost immediately, and new car loans and even home mortgages after just a few years. If your bankruptcy was caused by a job loss, then the first key is getting back to work again. With most of your debts eliminated by the bankruptcy and a new job,...

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Will a Secured Credit Card Help My Credit?

Secured credit card issuers require consumers to deposit a specified amount of money into a bank account to open a credit line. The amount of the deposit varies, but cardholders are allowed to charge up to a specified amount based on the amount of cash in their accounts. A secured card's impact on a person's credit rating is largely dictated by how the account is managed. Credit Reporting The U.S. Federal Trade Commission recommends that consumers find out before they open an account whether a secured card issuer reports customers' account...

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The Effects of Delinquencies & Charge-Offs

When you are late paying a debt, this delinquency may be reported to the credit reporting bureaus that are responsible for putting together your credit report. This credit report provides the basis for your credit score. The effects of a delinquency can, therefore, be severe, as this may cause your credit score to drop, which can lead to you paying more in interest on loans, including large loans such as mortgages. Credit Score Your credit score reflects your creditworthiness, as measured by whether you have paid back your loans in the...

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How to Eliminate School Loans

Student loans can be both good news and bad news. Many students are able to go to college because of the financial help they receive. That's the good news. The bad news is that they must pay the loans back at a time when they can least afford to. Many graduates live paycheck to paycheck, at least until they can get on their feet financially, so they struggle to make payments on their college loans. However, there are ways they can reduce or eliminate...

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How to Take Care of a Debt Settlement Yourself

Managing debt on your own isn't always easy, and many opt to seek help from a credit or debt counselor. Debt counselors charge their clients a certain amount of money to help them get their debt in order, but when you're facing financial hardships, every penny counts. Cutting out the middle man and taking care of debt settlement with creditors and collection agencies can save you money. Instructions Settling Original Creditor Debt 1 Obtain a copy of your credit report from one of the three free services offered by the Credit Bureau. You...

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I Do Not Want to Be a Co-Signer Anymore; How Can I Get Out Legally?

There are two problems with co-signing a loan: You become as responsible for the payments as the person who gets the money for the loan, and you remain responsible for the loan until it is fully repaid. Unfortunately, you cannot get out of being a co-signer once you've signed unless the lender lets you out. And the lender has absolutely no motivation to let you out. You've Been Warned You may not have noticed it, but before you co-signed...

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How to Dissolve Credit

Dissolving or eliminating credit is easy. However, a person should not confuse credit with debt. Digital Federal Credit Union defines credit as "confidence in a borrower's ability and intention to repay." Credit is available in a variety of forms, including credit cards that allow a person to make charges and pay the balance in a lump sum or through monthly payments. Debt occurs after a person uses credit to buy a car, pay for a vacation or for some other purpose. Instructions 1 Dissolve credit by reducing or closing credit lines, such...

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Strategies for Creditors in Bankruptcy Proceedings

Confronting debtors in a bankruptcy proceeding can be a draining exercise for creditors, who often wait months -- or years -- to collect a fraction of the amount owed. However, creditors can pursue different strategies to speed up the process. Creditors can try negotiating a settlement or join multiple parties to pressure a recalcitrant debtor. In extreme situations, creditors can ask for an administrative hold on the amount or challenge the bankruptcy...

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What Documents Validate a Debt?

The Fair Debt Collection Practices Act provides the legal framework in which third-party debt collectors must work. The law requires debt collectors to follow certain procedures and provide information to ensure they are collecting debts fairly and accurately. Of the most important aspects of the FDCPA is debt validation. This is the requirement of all debt collectors to be able to prove they have the right to collect the debt. The FDCPA has strict documentation requirements for validation purposes. Proof of Ownership or Assignment The...

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How to Help My Family Through Financial Crisis

When helping your family battle a financial crisis, it is best to show support and ask that each person be honest throughout the recovery process. For example, if you learn that a spouse has a secret credit card, thank him for acknowledging that the account exists and then ask him not to incur any new charges. This approach is the best and most effective way to create an environment in which you and your family can create solutions and work together as a unit. Work with your family to get back on track financially. Instructions 1 Sit down...

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For Each Collection Deletion on Your Credit Report How Much Will Your Score Rise?

Credit reports and the scores based on them serve a crucial role in your ability to get new forms of credit. Whenever you have debt collection appear on your credit report, this lowers your credit score and makes it harder to get a new loan. However, removing the record of the collections action will usually raise your score. Credit Scores Different companies create and use credit scores. These scores give lenders and borrowers a numerical representation of how reliable a potential borrower has been with past forms of credit. These scores...

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How to Deal With Defaulted Payday Loans

Payday loans can be helpful for customers who have little or bad credit, and who need to get money fast. They are also known as cash advances, and can be found locally or on the Internet. However, these companies charge high fees for the privilege of lending money to higher-risk persons, and many times borrowers cannot pay them back. If you default on a payday loan, there are ways to take care of it, so you can start rebuilding your credit. Instructions 1 Talk to the payday loan company that you originally received the loan through, if the...

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Can a Judgment Stop You From Cashing Your Paycheck?

Having a judgment filed against you does not mean that you are without the ability to cash your paycheck. Only a certain amount of your wages will get deducted from your pay as mandated by state and federal law, according to the Bureau of Labor Statistics. Identification If you owe money for a past debt, creditors can choose to file a judgment against you. Wage garnishment happens when a creditor takes you to court for the purposes of receiving...

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What Happens If I Stop Paying a Debt Forever?

During times of financial stress, it may be tempting to stop sending payments to your creditors. The consequences of nonpayment vary slightly depending on the type of debt you default on, but can last for many years and cause you considerable problems in the future. Negotiating new payment plans or loan terms with your creditors is always preferable to ignoring your financial obligations. Additional Charges Creditors add late fees to consumer accounts that remain unpaid past the due date. Although company policies differ, expect to incur...

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Do I Have to Repay a Charge Off?

A charge-off is a debt that is written off as a tax loss by a creditor after non-payment by a consumer---normally after six months of no payment. These charged-off accounts are reported on a consumer's credit file, and are often purchased by debt wholesalers who will attempt to collect on the debt from the consumer. Significance According to Gerri Detweiler, author of "The Ultimate Credit Handbook," a charged-off debt is the common accounting...

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What Can a Student Apply for to Take Care of Debt?

If you undertook a bachelor's or master's degree, it is likely that you also graduated with some debt. No one enjoys being in debt, and in these tough economic times, debt worries are exacerbated by high unemployment. However, those who are having trouble with their current student debt burden have some options. Consolidation If you are struggling with your monthly payments, and your loans are part of the government's Family Federal Education Loan Program (FFELP), you may consolidate your loans to reduce your monthly payments. These programs...

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How to Negotiate With Third-Party Credit Card Debt Collectors

Credit cards are a part of daily life. Consumers use them for minor purchases, such as groceries, dining out and movie rentals. They also use them for larger purchases like vacations, airline tickets and Christmas gifts. The downside is that credit card usage can lead to unmanageable debt. If a consumer fails to pay a credit card debt, the creditor may turn that debt over to a third-party collection agency. Instructions 1 Write a Debt Validation...

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Help With Credit Card Debt in Florida

If you cannot pay your credit card bills as promised, you have several options to find debt relief, according to the Florida Attorney General. Failure to pay your credit card bills can lead to disastrous financial consequences, including lawsuits and credit rating damage. Whether you can renegotiate your debts or must file bankruptcy depends upon the severity of your financial situation. Financial Management Tips You can sometimes get yourself out of credit card debt with discipline, notes the Florida Attorney General. Stop charging up...

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Impact of Debt Relief on a Credit Rating

One of the top concerns from people who are deep in debt and considering a debt-relief program is how their credit rating would be affected. With a debt-relief program, you stop paying your creditors and start paying a credit-counseling service or debt-management firm. Most creditors will start reporting negative information on your credit history after 30 days, so what will happen to your credit rating if you join a debt-management plan? Misconceptions When you apply for a debt-relief program, your debt counselors or lawyers are supposed...

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How to Build a Good Credit Score in College

College students have traditionally been a target for credit card lenders, with students receiving numerous offers designed to entice them into incurring debt. Thanks to the Credit CARD Act, instituted in 2009, consumers younger than 21 must have a co-signer, or prove their ability to repay a credit card loan, before they incur credit card debt. This bill can help young people protect their credit while working toward a degree. Students can also...

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Can Debt Be Collected From My Inheritance?

If you're lucky enough to receive an inheritance, the property you receive becomes yours and can be used by you in any way you see fit. Estates -- the property a person leaves behind after death -- are subject to various laws and taxes that affect how an inheritance is determined and distributed to beneficiaries. In general, if you receive an inheritance, your creditors are allowed to try to collect it to satisfy a debt, just as they can with any...

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How to Add Tradelines to a Credit Report

The absence of credit report tradelines often proves to be an obstacle in the path of obtaining credit. This is especially salient within the realm of younger consumers who face the Catch 22 of not being able to qualify for a loan until they have established sufficient tradelines on their credit bureau report. According to Maxine Sweet of Experian, one of the big thee credit bureaus, adding quality tradelines will help convince potential creditors that you are a good credit risk. Instructions Instructions 1 Apply for department store credit...

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Information to Get Out of Bad Debt Legally

If you have numerous looming debts and you're having trouble digging yourself out of debt, you have several legal options available to you. Debt consolidation, credit counseling and, as a last resort, bankruptcy provide assistance in getting rid of your debt--but they have various levels of negative repercussions on your credit report. Credit Report Before you take any action on resolving your debt issues, you must know where you stand financially....

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How to Improve a Credit Rating Quickly

Your credit score is one of the most important numbers in your life. It can play an instrumental role in your approval for a personal loan, car loan or home mortgage. Unfortunately, many are unaware how credit scores are calculated, and this can make it difficult to fix scores quickly. The two quickest methods for turning your credit score around are correcting errors on your credit report and increasing your available credit. Armed with a plan to...

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What Steps Do I Take to Order a Dispute Form for My Credit Report?

Before the Fair Credit Reporting Act was passed in 1970, consumers not only lacked the right to review their own credit history but also lacked the ability to dispute and correct errors. This caused problems for both individuals and lenders as lenders had no way to determine a borrower's actual lending risk. The FCRA gives you the right to dispute reporting errors in an effort to maintain your good credit rating and ensure that lenders see only accurate credit-related information when evaluating your financial history. Pull Credit Reports ...

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Garnishment Information

Creditors usually use garnishment as a last resort to collect debts. It's a process by which a creditor---a credit card company, for example---files a lawsuit against a debtor and secures a judgment, after which a percentage of a debtor's earnings are deducted from his paycheck and paid to the creditor. This wage garnishment process---sometimes called an attachment---is the most used form of garnishment. Property garnishments, such as car repossessions,...

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Is Bankruptcy the Answer If I Am Collecting Unemployment?

Unemployment is a leading cause of bankruptcy and is often the right answer for people struggling to pay bills while collecting unemployment. However, the Federal Trade Commission recommends that people try to avoid bankruptcy if possible. Bankruptcy ruins credit for years, making it tough or impossible to qualify for new credit at favorable rates. It could also make finding a new job difficult if the employer has rules against hiring new employees with serious credit issues. Chapter 7 Bankruptcy Some people collecting unemployment benefits...

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Definition of the Accrual of the Right of Action for Credit Card Debt

Accrual of the right of action for credit card debt is a concept used to determine when the clock starts ticking for purposes of computing the statute of limitations period for a civil action filed by a creditor. Statute of Limitations The statute of limitations is a legal principle that precludes a plaintiff from filing suit against a defendant after a specified period of time has elapsed from the date on which the controversy arose. Each state determines its own statute of limitations periods for various legal causes of action, whether...

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Christian Debt Relief Programs

Becoming debt free can be challenging for anyone regardless of religious affiliation but Christians may find it even more worrisome. The Bible says to owe nothing except for love. Unfortunately housing troubles and credit debt escalation make it difficult to follow this divine rule. Christians seeking to climb out of debt can turn to a number of debt resolution organizations with Christian values at their core. Working with a company that understands...

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What Are the Assets of a Judgment Debtor?

You become a judgment debtor when you owe a debt and a court orders that you pay the judgment. You can work out an arrangement with the creditor and pay the judgment in court-ordered installments, you can have your wages garnished or your assets can be seized. All non-voluntary payments you make must first be ordered by a court. Simply having a judgment against you is not sufficient for a creditor to seize your assets. Discovery of Assets Before a creditor can seize your assets, he goes to court and files a discovery of assets. This discovery...

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Who Can Collect Debts in Virginia?

The state of Virginia does not have a debt collection act of its own and therefore complies with the Federal Fair Debt Collection Practices Act. The federal law, however, puts no real restrictions on who can collect a debt. It only places restrictions on how debt can be collected to ensure that debtors aren't unduly harassed or treated unfairly. As a general rule, anyone who is owed money can attempt to collect it, or he can have agents or agencies attempt to make collection for them. Offset Program The state of Virginia itself, before...

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Can You Get a Creditor to Report a Settled Debt As Paid in Full?

Owing money to a creditor and then defaulting on the bill can trigger a collection account or a charge-off on your credit report. Both items harm your score, but settling the debt with your creditor can help repair damage. And, if you're fortunate, the creditor may report the debt as "paid in full." What Is a Settlement? A debt settlement involves paying an old debt that's owed to a creditor. But instead of giving creditors the full amount, you negotiate paying a percentage or less than what you owe. Creditors often agree to debt settlements...

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How to Settle a Deficiency Balance on a Repossession

A deficiency balance on a repossession occurs after a credit agency seizes the property and sells it at a private sale or auction. The lender subtracts the sales price from the loan balance to calculate the deficiency balance, if any. Repossession of automobiles often leads to deficiency balances because cars lose value so quickly. For example, a car owner with an automobile worth $10,000 may owe $14,000 on the car at the time of the repossession. That could result in a deficiency balance of $4,000 or even more, depending on what the car sells...

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How to Build Credit with No SSN

Social Security Numbers (SSN) were first issued in 1936. This nine-digit number is assigned to all American citizens, permanent residents and temporary working residents. The primary purpose of an SSN is to track individuals in relation to income taxes. Although an SSN is an essential piece of identification, you can build credit history without one. Instructions 1 Open a bank account. Credit applications require you to provide your bank information. Call the bank beforehand and ask what identification and deposit amount is required. Sometimes...

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Can You Still Deal With the Credit Card Company If You're Being Sued?

Credit card lawsuits are serious matters and sometimes lead to court judgments and even wage garnishment. A lawsuit is usually a last resort for collecting debt after months or even years of other efforts including telephone calls and letters sent by postal mail. At this point the account is usually managed by a debt collector working for the credit card company. Or the debt collector may own the account after purchasing it from the card company. Either way, the chances of dealing with, or communicating directly with the credit card company are...

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Missouri Statute of Limitations for Unsecured Debt

Unsecured debt typically arises from transactions involving credit cards, revolving credit accounts and installment agreements. If a debtor fails to pay an unsecured debt, the only legal action the creditor can take against the debtor is to file a lawsuit and obtain a civil judgment. In Missouri, as in all states, the law sets a time limit---called the statute of limitations---by which the creditor must file a lawsuit to collect an unsecured debt. If the creditor does not file a collection lawsuit before the statute expires, the debtor can defeat...

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Help for Medical Bill Debt

According to a 2009 report in "The American Journal of Medicine," 61 percent of individuals who filed for bankruptcy in 2007 did so in response to medical debt. Of these individuals, 92 percent had over $5,000 in medical debt. Medical debt affects the insured as well as the uninsured, as 75 percent of the individuals interviewed for the report had some form of health insurance. Medicaid Uninsured, low-income individuals with medical debts can apply for Medicaid through their local Department of Health and Human Services. Eligibility criteria...

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My Ex-Spouse Is Not Paying Marital Debt in Nevada

When a former spouse disregards the terms of his divorce, the refusal to pay debts or transfer property as previously agreed may significantly impact the other party's finances. An individual who needs to enforce the terms of a divorce should understand the financial rights and obligations of spouses. The ex-spouse seeking enforcement may wish to consult with a Nevada attorney regarding the relevant divorce and bankruptcy laws. Asset and Debt...

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