Why Wouldn't I Pass a Background Check?

Both employers and potential landlords commonly run background checks on applicants to evaluate them in advance of establishing a relationship. If you have recently submitted an application and have a concern regarding what the background check entails, there are several possible reasons why you would not pass this test. Pulling a Background Check It commonly takes up to a few days for a company to pull a full background check. As the name suggests, it is a comprehensive view of your background as far as public records. The results include...

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Can a Creditor Put a Lien on Your Land Under Bankruptcy Law?

Whether a creditor can put a lien against your property under bankruptcy law depends on the timing and nature of the lien. If you are facing a lien as a debtor, bankruptcy may or may not protect you. While bankruptcy can be an effective tool in getting out from under debt, a lien can often stand independent of a debt and need to be satisfied even if you file bankruptcy. Path to A Lien Although a creditor may ultimately have the right to put a lien on your property, a series of legal events need to occur before such a lien is permissible....

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How to Make a Car Payment Using Mastercard

Making a car payment using Mastercard is easy with a phone or Internet connection, or you can make the payment through the mail. While you might want to evaluate the financial wisdom of charging a car payment on a credit card, in a cash-strapped situation it could keep you from incurring a late fee and damaging your credit rating. Instructions 1 Call the finance company that holds the title on your car and give the customer service representative your credit card number and expiration date. You will be asked to verify your identity, usually...

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How to Garnish Tax Returns

Garnishment is a legal procedure where a creditor can automatically collect a percentage of a debtor's wages or his tax return to satisfy a debt. In many states, garnishment is used to fulfill support orders, such as court-ordered child support and alimony payment. Many states also permit creditors, such as credit card companies, to garnish a debtor's tax return and wages. Instructions How to Garnish Tax Returns 1 The creditor must send a letter to the debtor's last known address stating the amount of debt owed while specifying that the...

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How to Choose a Debt Relief Agency

When a credit crunch affects thousands of people worldwide, many individuals look for debt relief. There seems to be a helping hand around every corner, but not all debt relief agencies are created equally. It's important to know the facts about how to choose the right debt relief agency for you in order to maintain your good name and credit rating. Instructions 1 Research debt relief agencies online. When selecting debt relief agencies, take your top three choices and check out the Better Business Bureau website to see how many complaints...

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Can Unsecured Debt Be Garnished From a Bank Account?

When you fail to pay a secured debt, such as a mortgage loan, your lender has the option to lay claim to the collateral you used to qualify for the loan or line of credit. Unsecured debts, however, do not require collateral. To recover the debt a creditor will sometimes seek a bank account garnishment, often referred to as a "bank levy." The Facts Private creditors must secure a legal judgment against you in court before a levy can be placed...

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Can Sallie Mae Garnish Wages in the State of Texas?

In Texas, wages are considered nonexempt property and cannot be garnished. However, Texas law makes exceptions for defaulted federal student loans, non-wage income such as rental income, bank accounts and child support. Therefore, if you took out a federal student loan through the Federal Family Education Loan Program (FFLEP), Sallie Mae can garnish your paycheck. If you have a loan through Sallie Mae's private loan program, it cannot garnish your paycheck according to Texas law. Wage Garnishment in Texas While wages are consider nonexempt...

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How to Write Off a Debt Via a Statute of Limitations

State usury laws all have statutes of limitations. This means that after a certain period of time, a debt becomes unenforceable. Any judgment on your credit report that has passed the statute of limitations, as determined by your state, can be overturned and removed from your credit report. This process is relatively simple, but you may need to retain an attorney to successfully overturn a judgment. Instructions 1 Pull your current credit...

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What Is the Charge-Off of a Credit Card Account?

A charge-off includes any amount of a customer's balance due on a credit card that the bank writes off as uncollectible. This may be the entire balance or, in the case of debt settlement, a portion of the balance. The bank may require the reduced balance to be paid in one lump sum or over several months. Once the lower balance is paid in full, the debt is considered closed by the lender. Benefits In cases where customers have gotten over...

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How to Eliminate Credit Card Debt to MBNA

If you have an MBNA credit card with a dramatically high interest rate or a large balance, you may be wondering how to get yourself out of debt or, at the very least, improve your payment situation. MBNA has recently gained a reputation for decreasing responsible cardholders's credit limits in an effort to decrease their exposure to credit risk. This action has left many account holders feeling sour toward MBNA, wanting to pay their remaining debts...

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Credit Card Options to Build Your Credit

When you're first establishing credit or rebuilding after a financial meltdown, you may become frustrated with the credit card companies because you usually need to have credit to apply for credit. The key to getting in to the credit cardholder's club is to know what kind of credit card you're most likely to qualify for. By handling your credit cards carefully from the start, you'll build a solid foundation for a healthy credit standing. Store...

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Can a Bank Close Home Equity Line of Credit When One Spouse Dies?

Most home equity line of credit (HELOC) agreements give the bank the right to close the credit line when it suspects the borrower can no longer afford the loan. Such a move is possible if a spouse dies and if the spouse was a signer on the loan and provided income to support the payments. The death is unlikely to effect the HELOC in situations in which the surviving spouse is solely responsible for the loan. Considerations The Federal Reserve Board reports that most HELOCs contain clauses allowing the bank to freeze or reduce a credit line...

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Debt Collectors Vs. Creditors

Having debt means dealing with a creditor, and in some cases, a debt collector as well. A debt collector is not the same as a creditor, although both may try to get you to pay what you owe. The differences between creditors and debt collectors make a difference in regard to whom you pay, as well as the rights you can exercise. Credit Extension The primary distinction between a creditor and a debt collector is that a debt collector does not offer a line of credit the way a creditor does. You cannot appeal to a debt collector to get a loan,...

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How Do I Settle a Judgement?

A judgment occurs when a court of law finds on behalf of either the plaintiff or defendant. If a judgment has been entered against you, the plaintiff has the legal right to garnish your wages, pull money out of your bank accounts and recover property to pay the debt owed. Attempting to settle a judgment is possible but should be carefully considered. If your creditor is not pressing you for payment, making contact may awaken interest in your case...

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How to Eliminate Debt Using The Debt Snowball Method

This article will describe what a debt snowball is and how you can use it to get out of debt for good. Instructions 1 First you should accumulate a $1,000 emergency fund. You may be thinking to yourself shouldn't I be paying this money towards my current debt, and the answer is no. You need to have some money set aside to protect yourself if something unexpected should arise. That way you're protected from having to go further in debt. Now,...

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What Happens if I Default on a Payday Loan in Kentucky?

When a person takes out a payday loan, he is legally required to pay back the money he took out, as well as any additional interest or fees charged to him. If he doesn't, the lender can take actions to collect on it. However, payday lenders in Kentucky actually have few options to collect, as they cannot sue a borrower for payment of the money in civil court. Payday Loans When a person takes out a payday loan, he must generally sign a contract with the lender in which he agrees to pay back the loan and agrees to pay any additional charge,...

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Can the Department of Education Garnish a Veteran's Disability Pension?

Veterans disability benefits, like most other federal benefits, are typically exempt from garnishment to repay creditors. However, because the U.S. Department of Education can sometimes garnish certain federal benefits to recover debts, you may wonder if your veterans benefits are safe from garnishment for defaulted student loans. About Garnishment When a creditor garnishes your wages or other income, he intercepts a portion of the funds...

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How Can I Get a Real Loan to Pay Off Debt If Credit Is Bad?

If your credit-card debt is rising quickly, don't be ashamed. You're far from alone. According to an April 2009 publication by The Nilson Report, the average credit-card debt for households that owned at least one credit card stood at $10,679 at the end of 2008. Fortunately, you can help pay down this debt with a home equity loan, even if you have bad credit. Home Equity Loan One of the main benefits of owning a home is that you build up equity as you make your mortgage payments over the years. You can then use this equity to pay for home...

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How Much of My Credit Card Balance Should I Pay Each Month?

Minimum Payment When you get your credit card bill, you should make sure to pay at least the minimum. By doing so, your creditor will report the account as being current, and you will avoid interest rate hikes that would result from missing your payments. Balance in Full Credit cards have very high interest rates because the debt is unsecured. As long as you pay the entire balance, no interest will be charged on your account. In addition, your credit score would benefit because you would have a lower ratio of debt to available credit....

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Can Financial Aid Be Seized for a Judgment?

A judgment lien is a ruling used to seize funds in order to pay off a debt. When a judgment lien is granted, few funds are protected from the lien, especially for liens filed by state and federal government agencies. However, the lien is not designed to remove a person's ability to pay for living expenses, and will typically affect only extra income. Some types of financial aid, especially governmental aid, are usually protected during the process. Judgment Liens A lien is a claim that a creditor holds against an asset in order to claim...

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Student Debt Recovery

Getting a college degree is a wonderful thing that can open a thousand doors that would otherwise be closed. Unfortunately, it can also lead to the accumulation of burdensome debt in the form of student loans. These debts can become overwhelming in many instances, leading many students to seek outside help. Deferment If you're facing a student loan that is getting ready to go into default because you aren't making enough money to pay it down,...

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Can Wages Be Garnished in North Carolina for Lawsuits?

When a person is deeply into debt with creditors, he may face a number of actions designed to secure the collection of the money that he owes. These tactics can range from the relatively innocuous -- contact by phone and email -- to the aggressive -- the attempted garnishment of the debtor's wages. In North Carolina, creditors are allowed to seek garnishment if they have been awarded damages in a civil case, but only for certain types of debts. Civil Suits In order to secure the garnishment of a debtor's wages, a creditor must first file...

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Bank Accounts That Cannot Be Garnished or Frozen

If an individual fails to back a loan or another extension of credit, then creditors may try to take back the debt forcibly. Creditors have a number of legal means of doing this. Among them is the garnishment of the individual's wages and the freezing and seizure of his bank account. However, in some cases, money deposited in a bank account cannot be taken by legal force. Garnishment/Freezing Garnishment is when an individual has his wages or other form of income seized before they can be given to him. This is done after the creditor has...

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Debt Negotiation & Repair

When debt becomes unmanageable, many people seek out ways to reduce or settle their outstanding debt. There is a lot of information on debt negotiation or settlement, but much of the information is not reliable. It is important to do thorough research on methods you may be interested in pursuing. In addition, it is necessary to get tips and advice on what approach to debt negotiation is right for you and your particular situation. Identification...

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How to Pay Off Student Loans Quicker

Every year millions of college graduates find themselves up to their ears in student loan debt. Today, it is easier for kids to attend school than it was decades ago, but the huge bill after graduation can come as a shock. Repaying student loans can be challenging, especially if you have other expenses like rent, utilities and other debt. However, if you pay off your loan quicker, you could save thousands of dollars in interest and improve the way...

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What Happens If You Don't Pay an Unsecured Debt?

The difference between a secured debt and an unsecured debt is simple. A secured debt is one that is backed by actual collateral. This collateral can be a dwelling or a car or anything that has definite value. On the other hand, an unsecured debt is one that is contractual. The borrower simply signs a document that says that the debt will be paid back within a certain time and within certain conditions. Types There are three kinds of...

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How to Get a Credit Report for a Minor Child

Credit reports for minors typically do not exist except in cases of identity theft. Credit bureaus do not deliberately keep records on minor children. If you suspect that your child may be a victim of identity theft, it is possible to obtain credit reports on his behalf to rectify the situation. Instructions 1 Write a letter to each of the three credit bureaus: Equifax, Experian and TransUnion. You may write one letter and send it to all three to save yourself time. Explain that you are concerned that your child may be a victim of identity...

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What Happens With Student Loan Debt if You Move to Another Country?

Higher education comes with a price. Each year, hundreds of thousands of students take on debt to finance their education. While some of these debts may be relatively small, others can reach over $100,000. Compounding the difficulty of paying these loans off, these debts are generally immune from statutes of limitations on debt collection and cannot be discharged in bankruptcy. To escape a crushing debt loan, some students relocate to other countries....

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How to Calculate the Last Payment Due Date

When you take on a new loan or make a big purchase on your credit card, it's a good idea to calculate the last payment due date. Calculating your last payment due date helps you realize the true cost of only paying the minimum amount due each month and lets you see just how much money you can save by making extra payments when possible. It also tells you just how long you can expect to include the loan payment in your monthly budget. Instructions...

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Explanation of Interest Bearing Debt

Interest bearing debt seems like a contradiction in terms---and often it is. Millions of American consumers are swimming in non-interest-bearing debt. However, there are a small percentage of market-savvy consumers taking advantage of interest-bearing debt. The process of earning while in debt is called arbitrage, or, for the average citizen, credit card arbitrage. Before Arbitrage Credit card arbitrage is not for the faint of heart. The process involves taking on huge sums of credit card debt and investing it. Before engaging in this process,...

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What Happens When Being Sued for Credit Card Debt in Texas?

Credit card debt is unsecured debt, meaning that the creditor cannot take away your home or other property if you do not pay the debt. In Texas, credit card companies can sue delinquent debtors for the amount of the debt plus attorney costs. However, under most circumstances, creditors cannot garnish debtors' wages and must reclaim the debt another way even if they get a judgment in court. Consult your attorney about your options if your credit card company sues you for nonpayment of debt. Prohibition on Wage Garnishment Texas is one of...

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The Best Methods of Paying off Debt

Debt elimination efforts can fail without a solid strategy. Consumer debt can decrease your disposable income and reduce your FICO credit score. Several factors contribute to high debts, such as overspending or income issues. But by employing a few effective methods, you can successfully eradicate your personal debts. Live Below Your Means An expensive lifestyle can play a role in huge debts because there's less money to pay down debt each...

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How Do I Get Out of Medical Debt That I Can Never Afford to Pay Back?

For people without health insurance who face a major illness or a serious accident, the bills for medical treatment can quickly grow to the point that they are impossible to pay. Even for the insured, the co-payment amounts may be high enough to cause severe financial problems. You end up with more medical debt than you will ever be able to pay. In these cases, you may have no other choice but to try to eliminate these debts without paying them in full. Instructions 1 Contact the hospital and other medical providers as soon as possible to...

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Will My Bad Credit Affect My Husband?

Husbands and wives typically apply for financing together. But if one party, such as the wife, has a bad credit history, getting the credit a couple needs can prove challenging. Everyone has their own credit score and history. But oftentimes, the credit habits of one spouse can affect the other. Individual Accounts Its common for two married people to have individual or separate credit accounts. They may have acquired these accounts before...

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What Happens After Eight Years on My Debt?

Sometimes, debts go away and sometimes they linger for a longer period of time. Depending on the laws of the state in which a debt is issued, an old debt may still be collectible by creditors. However, in many cases, an old debt will no longer be eligible for collection, as it will have passed the state's statute of limitations. However, an eight-year-old debt will likely not be listed on a person's credit report. Statute of Limitations Each state has its own laws regarding how long a creditor can go after a debtor for the payment of a...

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How to Compose a Sample Hardship Letter

Writing a sample hardship letter to a mortgage company could avoid foreclose to your home. If you find yourself behind on your mortgage a hardship letter sample asking for a modification could help. Instructions 1 The first step to composing a sample hardship letter is to understand your goal which is to avoid foreclosure on your home. 2 Second, realize your hardship explanation must be clear and concise in your sample letter because...

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The Best Ways to Get Rid of Small Debts

Most people carry around some amount of debt, such as car loans, credit cards or even late fines on overdue library books. Debt can rack up quickly, leaving you feeling overwhelmed. Fortunately, if you have a few small debts, there are easy and painless ways to get those paid off quickly, leading you well on your way to being debt-free. The Snowball Method The snowball method, invented by Dave Ramsey, involves paying off all your debts starting...

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Does Paying a Credit Card on Time Improve Your Credit Score?

Getting your credit score as high as possible means handling your finances responsibly in a number of ways, including paying your credit cards on time. Making payments on time reflects your ability to handle your borrowing wisely. However, other factors also play into the ultimate calculation of your credit score. Timeliness of Payments The timeliness of your payments accounts for the largest chunk of your credit score, at 35 percent. Paying...

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How to Put a Security Freeze on a Credit Account

Every year, identity theft strikes millions of new people in the U.S. A security freeze allows you to lock your credit report, preventing anyone from opening up a new account. Because the information is not accessible to creditors, the thief will not be able to obtain a new credit line. It is very important that you freeze your credit report at all three major credit bureaus: TransUnion, Experian and Equifax. Instructions 1 Check the Consumers...

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