How to Pay the Debt of a Deceased Person

The heirs of a deceased person are not obligated to pay the recently departed individual's debts, but the estate left behind is beholden to creditors. After the estate pays for funeral expenses, any existing creditors have a right to divide up the assets of the estate to cover any existing accounts. Once these debts have been settled, the rest of the will can be executed. Instructions 1 Determine who the executor or administrator of the deceased is. The executor will be named by the will of the deceased. If there is no will, the next of...

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What Does it Mean to Charge Off a Debt?

Credit card companies, banks and other financial institutions that issue credit or loans to consumers adopt different methods for handling delinquent account holders. However, there is one main process that all creditors use once they are unable to collect what is owed. Facts Creditors charge off a debt when the account balance goes unpaid for several months. For creditors, the process involves reporting the uncollected debt to the credit...

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How to Eliminate Debt Fast Without Bankruptcy or Debt Consolidation

Regardless of the hype regarding debt elimination, there is no secret government grant or program that eliminates your debt, unless you're considering bankruptcy. Eliminate your debt without resorting to debt consolidation or bankruptcy with budgeting, careful planning, and most of all commitment. The quickest path to financial freedom involves a common sense approach to spending less. Ideally, you will be able to reduce what you owe by budgeting...

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Can Wages Be Garnished Through a Prepaid Credit Card?

When a person has debts that are outstanding and delinquent with a creditor, he always runs the risk that he will become the target of a lawsuit seeking collection of these debts. In such a case, the person, if found guilty of owing the money, may become the object of more aggressive attempts to collect the money that he owes. This can include wage garnishment. However, garnishing a prepaid credit card would be difficult. Garnishment Garnishment is the diversion of a debtor's income stream to the creditor to whom he owes money. Garnishments...

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Advantages of a Co-Borrower Vs. a Cosigner

There is a world of difference between being a co-borrower and a cosigner. Co-borrowers have a legal status as co-owner of whatever asset is being held as collateral for a loan. Cosigners have no legal ownership of the asset; however, they are legally bound to the credit agreement that is connected to the asset. Rights of Ownership As a co-borrower, you are co-owner of the asset. The asset, whether it's a car, motorcycle or boat, will be registered in both your name and the other owner's name. It would require both signatures to sell the...

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How Long to Clear Up Credit Issues?

Your credit history is extremely important and it can significantly impact the amount of money that you pay in interest now and in the future. If you have credit issues on your credit report, getting these issues taken care of in a timely manner can improve your financial situation. Timely Payments One of the best ways to improve your credit is to start making payments on time. Your creditors will report late payments to the credit bureaus....

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Is Consumer Credit Repair Helpful or Harmful?

Consumer credit repair is the process by which you can actively repair your credit rather than hiring a third party to do it. If done correctly, consumer credit repair can be very effective in restoring damaged credit. Insight There is nothing that a credit repair company can do for you that you cannot do for yourself. Features Consumer credit repair involves disputing negative items on a credit report, such as collection accounts...

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Debt Settlement Company: How Do They Reduce Debt?

Debt settlement companies negotiate with creditors on behalf of debtors to reach settlements that allow debtors to pay creditors less than they owe. Creditors lose money by agreeing to debt settlements, but sometimes agree to such deals if the debt settlement firm makes a convincing argument that a debt settlement represents the creditor's best chance of recouping some of the money that the debtor owes. Default You "default" on a loan if you fall more than 30 days behind on your scheduled payments. If you fall behind on loans secured by...

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How to Apply for Documentary Credit

Also known as a letter of credit, documentary credit is a letter issued by a bank to a seller. The letter serves as a guarantee that the buyer will make his or her payment for a purchase on time and in the correct amount. Documentary credit is essential in international business transactions between exporters and importers. This type of documentation is mainly used to foster trust and confidence in business deals through the intervention of an issuing bank. Instructions 1 Finalize the terms of the sale agreement with the seller. 2 Go...

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Financing & Credit Help

If you've been eyeballing that car or need a loan for a home renovation, you want to borrow money with attractive terms. You need low-interest financing to make monthly payments affordable. However, if your credit history has some rough patches, this could cause lenders to refuse you an affordable rate. To qualify for low-cost financing, your credit score needs to be strong, and there are ways to strengthen your credit muscle. Why Have Good Credit?...

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Should You Consider Debt Settlement Even if You Can Pay Off Your Debt?

If you are deep in debt and unable to pay, you may have considered debt settlement as a way to get out of debt. In debt settlement, your creditor agrees to accept less than the amount owed as payment in full. If you don't have problems paying your bills, it may be tempting to try to save money by negotiating a debt settlement with your creditors. While you can save some money settling debts, the practice has some pitfalls you should consider. Credit Damage For a creditor to consider settling a debt for less than what you owe on the account,...

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Virginia Laws Regarding Spousal Credit Cards

In the commonwealth of Virginia, spouses are jointly liable for their marital debts and remain jointly liable if they divorce. Similar to the majority of other jurisdictions, the commonwealth is an equitable distribution jurisdiction. In equitable distribution states, all marital property is jointly owned. Similarly, all marital debts are equitably divided between spouses. If spouses cannot agree upon a mutually acceptable settlement agreement allocating...

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If My Student Loans Are in My Chapter 13, Can I Still Qualify for an FHA Loan?

Federal student loans and Federal Housing Administration (FHA) loans are both generated through the federal government. Whenever you apply for a loan with the government's backing, you will be subject to its rules and regulations, which can be stricter than those in the private market. Your financial history with the government, including how you have paid previous debts and taxes, will affect your ability to obtain a new loan with their backing....

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Types of Debt Relief Government Grants

Only a very limited number of government programs offer grants to help with debt. Programs available limit assistance to critical needs, such as housing and utilities, but do not help with other types of debt, such as credit card bills. However, certain government programs can provide loans to help you better manage certain types of debts, such as mortgages and student loans. The federal government funds the majority of programs, but a limited number...

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How to Deal With Collection Agencies if You Can't Pay

Dealing with collection agencies when you cannot pay requires determination and planning. Although some debt collectors may sound sympathetic over the phone, their only goal is to collect as much money from you as possible -- and in the least amount of time. It's up to you to stand up to the debt collectors by exercising your rights under the Fair Debt Collections Practices Act. The act is a federal law and regulates the behavior of debt collectors. Giving in to debt collectors and making promises you cannot keep could make your situation worse....

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What Are Reasons to Pardon Very Old Student Loans?

Bankruptcy courts have discharged debt incurred through vices, such as casino gambling, but student loans are almost impossible to evade because of the possibility of bankruptcy abuse. You can "pardon" student loans in a few cases, but this is usually extremely hard to prove. The most likely scenario to handle your debt is to restructure it. History Private student loans became non-dischargeable if the borrower filed a bankruptcy case after October 7, 1998. Even then, a borrower could only discharge student debt after it had been in payment...

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Is it Bad to Settle a Debt?

If your creditors stop receiving regular payments from you and you are in danger of defaulting on your account balances, your creditors might negotiate a settlement balance with you in order to minimize financial losses. From a creditor's perspective, recovering a portion of the debt you owe is better than recovering nothing at all. While settling your debts may be necessary in certain circumstances, doing so can carry negative consequences. Tax Issues By paying less to your creditors than you actually owe and settling your outstanding...

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Does a Settlement Negatively Impact Credit?

A debt settlement does negatively impact credit, but how much is dictated by the situation. It depends on the debtor's credit score before settlement and other factors, such as balances and payments on other accounts. A person with great credit could experience a large drop in credit score after a settlement, while people with poor credit may experience little to no change because their credit score is already near the bottom of the scale. Identification Debt settlement allows debtors to pay off credit cards and other unsecured debts --...

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Fair Credit Act Laws

Consumers who have behaved responsibly but hit a financial snag and those who overspent and wound up in money trouble alike are protected in the United States by the Fair Credit Reporting Act. The FCRA does not relieve debtors of their obligations, but it does limit some of the more nefarious behaviors of the creditors that were common prior to its passage. Personal Information Under the FCRA laws, you do not have to give any additional personal...

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How to Build Credit After Bankruptcy

Bankruptcy can feel like the end of the road, rather than a chance for a new beginning. If you can embrace this way of looking at it, there is a very good chance you can rebuild your credit after filing bankruptcy. You can come back with a financial strength you never had before. Instructions 1 Apply for credit using new avenues. A lot of what you can do to build credit after bankruptcy will ring familiar to you. It is, in fact, quite similar...

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Help With a Credit Card Debt Sent to a Collection Agency

Delinquent credit card debt may be charged off by your credit card company and your account may be closed. That means the company has written it off in its books as bad debt. At that point, an in-house collection agency or an outside one hired by the company usually takes charge of the debt and will try to get you to pay it. Knowing your rights and the process helps considerably. Your Rights The Fair Debt Collection Practices Act (FDCPA) is a federal law designed to protect consumers from predatory creditors and collection agencies. Under...

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What Is an ACH Charge on a Credit Card Transaction?

The automated clearinghouse, a financial network commonly known as the ACH that facilitates the electronic processing of bank checks, provides a number of conveniences for both businesses and consumers. Although merchants and consumers can benefit from ACH transactions, an ACH statement entry may have different meanings. Consumer An ACH entry on a consumer credit card statement, according to the Federal Financial Institutions Examination...

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How to Remove a Deceased Spouse's Debt

The Fair Credit Reporting Act (FCRA) entitles each individual to an accurate and fair credit report. The only debts that should appear within your credit file are those that you signed for yourself. Unfortunately, it is not uncommon for an individual to pass away while still owing outstanding debts. Even if his spouse is not legally liable for the debts, his creditors are likely to attempt to collect from her. It is illegal, however, to insert a...

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How to Get out of $24,000 in Credit Card Debt

With the U.S. in a recession, many people have large amounts of personal debt. If you have $24,000 in credit card debt, you are hardly alone. In March 2010, total U.S. revolving debt was $852.6 billion. Ninety-eight percent of that was credit card debt. The average American household owes over $16,000 on credit cards. If you genuinely cannot repay such a large debt, you can get rid of a large portion of it. One way is to file for bankruptcy. However, if you are a homeowner or have any significant assets, this is often not the best solution, as...

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Debt Relief Vs. Chapter 7 in Michigan

A person who is facing large amounts of debt in Michigan has several options for managing this debt, all of them relatively unsavory. The two main choices are between a form of debt relief, in which the person pays off all or part of his debt, and declaring. Bankruptcy will allow the person to dismiss a number of debts. However, it won't dismiss all debts and it comes with a number of steep downsides in Michigan. Debt Relief Advantages There are various forms of debt relief, including credit counseling, debt settlement -- in which a debt...

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How to Get a New Credit Report

A credit report is a rundown of your payment history that lists accounts, balances and payment patterns. Creditors rely on credit report information when issuing loans and credit cards. The three credit agencies are Experian, TransUnion and Equifax. By law, people are entitled to at least one new credit report once a year. Once you request the report, you can track your payment history with ease. Instructions 1 Go to Annualcreditreport.com. It is the only authorized source for consumers to access their annual credit report online for free....

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What Is the Statute of Limitations On Credit Card Defaults In Texas?

Each state has a statute of limitations regarding credit card debt. These debts are referred to as time-barred debts and creditors have reduced collection options regarding delinquent credit card accounts beyond the that date. While the statute of limitations does not absolve you of your debts or erase credit card defaults from your credit report, Texas law does protect you from lawsuits and possible wage garnishments from time-barred credit card...

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If I Make a Payment on a Debt, Can They Force Me to Pay All of It at Once?

When a person gets behind in paying a debt, he may attempt to offer the creditor partial payment on the debt. Sometimes, the debtor will accept this, as he wishes to receive some of the money he is owed rather than none of it. However, the creditor is under no legal obligation to accept only partial payment of the debt and has a full legal right to demand the debtor pay all at once. Debt Contracts When a person takes out a debt, he usually must also sign a legal document that clearly lays out when the debt is due and under what terms. While...

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Where to Get Free Money to Pay Off Debts

Building up a great deal of personal or business debt is a situation that many people have experienced first hand. In some cases, the debts mount up due to a loss of employment, prolonged health issues, divorce or a range of other problems. While many people may see bankruptcy as the only viable option to eliminate the debt and obtain a fresh start, that is not necessarily the case. There are a few resources that may allow the debtor to obtain grants or endowments to pay off all outstanding debt, with no obligation to repay the funds received....

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Can a Collection Agency Collect a Debt That Is 14 Years Old?

Your debts do not disappear if you ignore them. Creditors pass debts on to collection agencies when consumers stop making payments. Collection agencies that cannot collect also sell accounts to other debt buyers. This process continues until you either pay off the debt or a collection agency writes off the account as a tax loss. While a collection agency can collect a 14 year old debt, its methods for doing so are limited. Legal Recourse After 14 years, state laws bar collection agencies from pursuing legal recourse against you for nonpayment....

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Can Creditors Go After Property You Inherit?

An inheritance can be a mixed blessing. It often leads to increased financial freedom. However, depending on your state of residence and the type of property you inherit, your inheritance could end up benefiting your creditors more than it benefits you. If you have debts you haven't repaid, your creditors might be able to sue you and take your inheritance. Procedure While there are some exceptions, creditors can go after most types of inherited property. However, they cannot touch any of your property, inherited or otherwise, unless they...

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How to Transfer a Remaining Balance

When you transfer one credit card balance to another credit card, the new credit card pays off that balance on the old credit card. That balance is then added to the new credit cards total balance. This is useful when one card has a lower annual percentage rate than another. If you have a lower rate, you can save money over the long run. Some people also transfer balances to minimize the number of accounts they have to pay and keep up with each month....

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North Carolina Law on Not Paying Unsecured Debt

North Carolina was third in the nation for credit card debt as of 2010, according to an article on News-Record.com by the Herald-Sun of Durham. You may be one of the millions of North Carolinians with credit card debt. You may also be worried about what will happen if you fail to pay off your card debt and other unsecured debt. Nothing can replace advice from a competent attorney, but arming yourself beforehand with information about North Carolina law is a good idea. Statute of Limitations The statute of limitations is the maximum time...

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Drawbacks of Credit Cards

Credit cards have become a common way to make purchases for items that you don't currently have the money for. However, they are not a flawless solution for lack of money and have created as many problems, at least, as they have solved. There are some common drawbacks to the credit card system that you can learn how to avoid. Interest Rates Credit card interest rates can add up to hundreds or thousands of dollars if you maintain a high level...

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Can I Be Sued for Not Paying a Credit Card Debt?

Debt recovery procedures for credit card companies and collection agencies include telephone calls, collection letters and, occasionally, lawsuits. Your failure to pay your credit card balance could land you in court. Time Frame Although a creditor can file a lawsuit against you for your delinquent credit card debt, it must do so within the time frame specified by your state. Each state has a statute of limitations creditors must refer to...

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In Wage Garnishment, What Happens If You're Not Working?

A wage garnishment is a procedure a creditor can use to collect an unpaid debt after suing you and obtaining a judgment from a county or district court. This procedure involves directing your employer to withhold a portion of your earnings and send the money to the court for payment against your judgment debt. Wage garnishment is not typically a viable means of debt recovery if you are unemployed. Unemployment Income Exemption While you are employed, a judgment creditor can typically take up to 25 percent of your disposable income, which...

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How to Respond to Debt Collection Letters

Collection letters are generally sent to consumers by third-party collection agencies that buy old debt from creditors or other collection agencies. In other cases, the collection agency may be hired by the creditor to recover a delinquent debt. If you receive a letter from a collection agency, it is important to have the debt validated. Some collection agencies try to collect on invalid debts. Others may try to collect an excess amount. Responding...

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How to Settle a School Debt

Settling any debt, whether it be credit card debt or educational debt, is a challenging process that requires legwork and attention to detail. When settling a debt, you can either attempt to settle the school debt on your own or work with an accredited credit management company. Because the school will lose money in accepting your settlement offer, you want to prepare the best case for your settlement request. Instructions 1 Consider the best settlement offer. Evaluate how much money you can offer the school to settle the debt. To make your...

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Can You Be Arrested for Not Paying Unsecured Debt?

In the United States, you cannot be arrested for failing to pay your debts whether secured or unsecured. Creditors can sue you for the balance you owe on the debt, but the court will not issue a bench warrant for your arrest if it finds in favor of the creditor. Secured and Unsecured Debt Secured debt is debt in which the creditor holds property as collateral. If you fail to make your payments to the creditor, the creditor has the right to repossess the property such as a vehicle or foreclose on your home. With unsecured debt, the creditor...

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