Personal Credit Card for Business Problems

Using a personal credit card for business usually doesn't create problems--unless you charge business expenses to the card and are not reimbursed. Some companies fail or file for bankruptcy while still owing expense reimbursements. In some instances the money is never paid, forcing the employee to personally pay business charges. Liability Personal credit cards can also be a problem when you own the business. Some entrepreneurs structure their businesses as separate legal entities responsible for their own debts. Theoretically the business...

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Can I Settle Credit Card Debt If I Own a Home?

Home ownership won't prevent you from settling your debts, though some creditors and bill collectors may pressure you to borrow against your home to pay your bills. However, if your settlement attempts fail, and your creditors take you to court, they may be able to get a lien on your home. By contacting your creditors in the early stages of your financial problems, or seeking outside help, you may be able to avoid court and get your debts settled. Settling Credit Card Debt Your credit card company isn't under any obligation to settle your...

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How to Respond to a Debt Summons

According to the Federal Trade Commission, if you owe a debt, the creditor has a right to sue you in court. You will receive a debt summons to notify you if a lawsuit has been filed. It is best to respond to the summons immediately. Don't ignore the summons, because your lack of response can cause the judge to rule against you before you can dispute your claim. If you have been summoned to resolve a debt, there are many steps that you can take to...

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High Credit Card Balances & Refinancing Options

A high balance on one or several credit cards can hurt you with high interest rates, so many people look to refinance the debt via some form of debt consolidation loan. There are usually plenty of options, but it is important to ensure you don't go into deeper debt after you consolidate. If you consolidate your debt and continue to borrow, you will be in an even worse mess. Balance Transfers The easiest way to refinance is to transfer the...

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Can Your Wages Be Garnished in Texas if Your House Was Foreclosed On?

Foreclosure can be a financially devastating event -- it can ruin your credit for up to seven years and force you to find a new place to live. Losing your home to foreclosure can also prevent you from buying another home for two to five years, or even longer if the lender foreclosed if you abandoned the home. However, if you live in Texas, your mortgage lender typically cannot garnish your wages for expenses related to a foreclosure. Wage Garnishment Exemption Although federal law permits private creditors, including mortgage lenders, to...

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The Best Way to Get Rid of Credit Card Debt

It is not easy to get out of credit card debt, but it is well worth the effort in the long run. The best and only way to get rid of credit card debt is by making sacrifices, cutting back and being persistent. Dedicate yourself to getting rid of the debt. Once you are free from credit card debt, your credit score will improve, giving you more freedom to buy a house or car. You will also have more money each month since you no longer need to spend hundreds of dollars to pay credit card bills. Use the experience as inspiration to never get into credit...

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How to Successfully Collect a Debt

Employers both big and large have a huge issue when it comes to debt collection. If you have ever loaned anyone money of any amount, you know it is not an easy thing to get it back in a timely manner. However, if you follow a few steps, you will greatly increase your chances of recovering any past due funds. Instructions 1 Contact your local small claims court. Contact the court in your area and request the paperwork you would need to begin...

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Garnishment Solutions

Garnishment is often a creditor's last resort when trying to collect a debt from a consumer who is unwilling to pay. In order to obtain a court order allowing it to garnish an individual's wages or bank accounts, the creditor must win a lawsuit against the debtor in a state that gives garnishment rights to private creditors. While a garnishment order is beneficial to a creditor, it may leave a debtor struggling financially and searching for garnishment...

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Debt Counseling Guide

When you have a large amount of debt, there are a number of options you can pursue. One solution that many turn to is help from a debt counseling company. If you are considering using a debt counseling service to help get out from under your pile of debt, there are a few things to consider first. Debt Counseling Companies A debt counseling company will provide you with a number of services to help you get out of debt. These are often nonprofit organizations that offer counseling and other solutions. Debt counseling companies may offer help...

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How to Handle Debt Collector Calls

The federal Fair Debt Collections Practice Act regulates the behavior of debt collectors as they contact debtors by telephone. Knowing how the rule protects you makes handling debt collection calls easier. For example, debt collectors are prohibited from harassing you by calling at odd hours, such as very late at night or very early in the morning. Debt collectors also may not scream at you or attempt to intimidate you by suggesting physical harm. It's also important to note that you do not have to speak to debt collectors on the phone if you choose...

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Consequences of Debt Relief

Sometimes, when a person finds himself behind on several debts or in imminent danger of defaulting, he will negotiate with his creditors to pay only some of the total money that the borrower originally agreed to pay. Settling for less than the person originally owed is known as debt relief or debt settlement. Although debt relief can provide a person some financial breathing room, it can have long-term repercussions. Debt Settlement Many companies are willing to accept only partial payment by a debtor on an outstanding debt. This is because...

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Will I Get Sued for Credit Card Debt?

The answer to the question "Will I get sued for credit card debt?" proves complex. Federal laws, state laws and the debt collection options available to creditors weigh heavily on whether a credit card company or debt collection agency sues an individual over unpaid debts. Considerations affecting a creditor's decision to sue a debtor include state wage garnishment laws and insolvency and bankruptcy options. The amount of credit debt involved also...

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How to Sue a Person Within an LLC

A Limited Liability Company (LLC) is a type of business structure that offers its owners limited protection against liability. In general, you can sue an LLC member as an individual, but if the LLC is structured in a way that protects its members from liability, you may not see a dime of the LLC proceeds in the settlement. Recent changes in the law preclude the liability protection in some instances, so there is a chance you may be able to recover some money. Instructions 1 Contact your secretary of state's office or division of corporations...

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Debt Consolidation & Credit Rating

Credit scores are used to determine everything from loan interest rates to employment. Falling behind on credit payments negatively impacts your credit score and chances for applying for new loans and credit. One option borrowers can use to pay off debt is a debt consolidation or debt management program. These programs are offered through lenders and credit counseling agencies. Debt management plans usually show up on credit reports, but have minimal...

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Is There a Consolidation Loan to Pay Off Payday Loans?

Payday loans can create a cycle of borrowing over and over. The fees for the loans are quite high and make it difficult to catch up and break free of the payday loan cycle. Consolidating your payday loans into one loan with a set monthly payment may be one way to break free of the payment cycle. Consolidation Loan A consolidation loan is a loan that gives you money to pay off several smaller loans. These loans will have set terms with a monthly...

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Can a Lender Garnish My Wages If I Am Head of Household in Indiana?

Indiana's laws governing wage garnishment are codified in the Indiana Code Section 24-4.5-5-105. Indiana law allows creditors to garnish the same amount as that prescribed in Title III of the Consumer Credit Protection Act. Multiple garnishments are allowed as long as the combined amount does not exceed 25 percent of an employee's disposable income. Head of Household Exemption According to the Internal Revenue Service, an individual can file as head of household if he was unmarried on the last day of the calendar year, paid over half the...

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How to Know That a Debt Buyer Owns Your Account

When an account is delinquent, it is normally sent to a collection agency that will attempt to collect the past due amount. If it can't collect, the debt is usually charged off. Sometimes, during this process, the debt may be sold to another company that can continue to try to collect on it. Normally, the debtor will be notified by mail of the change but, in many cases, the company may have an old address and be unable to reach him. Instructions 1 Pull your most recent credit report. The best way to find out who owns your debt is by looking...

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Is a Lien or a Bankruptcy Worse?

Your credit report is like a snapshot which can show lenders and potential employers what your current financial situation looks like and how responsible you have been in handling financial obligations. Any negative report on your account can be detrimental to your financial health, but a long-term inability to meet your financial obligations could result in liens or bankruptcy. Determining which is worse between a lien and bankruptcy is subjective. Lien Definition A lien is a legal claim against property you own, and liens are typically...

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When Will Unpaid Debts Leave Your Credit Report?

Your credit report serves as a thorough record of your financial past. Prior creditors you held accounts with, how much you currently owe and any balance you previously left unpaid all show up in your credit report for future lenders to see and all affect your credit scores. Unpaid debts are particularly detrimental to your credit but do not remain on file with the credit bureaus forever. Seven-Year Standard The reporting period for debts...

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Do It Yourself Debt Negotiation

Debt negotiation involves making an arrangement or agreement with creditors to pay a debt for less than what it is owed. Debt settlement negotiation is often associated with reducing credit card debt, but it is also possible with mortgage debt when the borrower and the bank agree to do a "short sale" in which a house is sold and the proceeds, which are less than what is owed on the mortgage, go to the lender to satisfy the debt. Stop Paying Your Debts The first step to debt negotiation is usually to stop paying your debts. Most creditors...

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Can Bankruptcy Stop a Garnishment on Bank Account?

Debts leading to bank garnishment are a primary reason some people choose to file for bankruptcy. All forms of bankruptcy stop garnishment, including Chapter 7 bankruptcy, which eliminates unsecured debt in just months. Chapter 13 bankruptcy reorganizes credit obligations over a period of three to five years. Considerations An automatic stay is a court order in bankruptcy requiring debt collectors to end all collection efforts, including bank garnishment. Federal law prohibits banks and debt collectors from continuing with garnishment after...

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Can Creditors Garnish a Prepaid Debit Card?

A borrower is subject to a garnishment action when she is delinquent on a loan, is taken to court by the creditor or debt collector and has assets or wages confiscated by the court. Usually, back taxes and child support make a consumer liable for garnishment, but credit card companies may attempt to collect this way, too. Borrowers who attempt to circumvent a garnishment by purchasing a prepaid debit card may be unpleasantly surprised. Knowledge of the Prepaid Account Prepaid debit card garnishment is predicated upon the creditor knowing...

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What Incomes Cannot Be Garnished?

Garnishment allows debt collectors to take money from a debtor's bank accounts or wages to satisfy a court judgment or government tax levy. Garnishment has such a potentially devastating effect on finances that it forces some people into bankruptcy. However, protection from garnishment is available on certain incomes. Exemptions Income from retirement pensions is usually exempt from garnishment, and the U.S. Department of Treasury reports that certain income from the government is also usually exempt. Federal law exempts garnishment of...

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How Do Debt Consolidators Work?

Consultation and Rate Quote Many consumers desiring to be debt-free turn to debt consolidators for help. A debt consolidator's first step will be to set up a consultation with you. At that time, the consolidator will look at your debt and provide you with a free analysis and rate quote. As a rule, reputable debt consolidators will offer this consultation for free, so be skeptical if asked to pay for an initial consultation. It is also important...

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The Definition of a Deferred Mortgage Balance

A deferred mortgage balance is a portion of your mortgage principal that your lender moves to the end of your loan. A lender can sometimes defer a portion of your mortgage when you refinance; however, this practice is most commonly associated with loan modifications, which are used to help financially distressed homeowners avoid foreclosure. Purpose The primary purpose of a deferred mortgage balance is to reduce the portion of your mortgage principal that is subject to interest under your primary mortgage loan. It also reduces your primary...

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The Difference in Debit Cards & Prepaid Credit Cards

Just like a credit card, you can use a debit card or a prepaid credit card to buy services. However, with debit cards and prepaid cards you do not pay interest on charges made with the card. In some cases, this makes debit and prepaid credit cards an attractive, less costly alternative than a traditional credit card. The primary difference between debit or prepaid cards and traditional credit cards is that debit and prepaid cards require you to deposit money into an account prior to use. Debit Cards Banks link your debit card to your checking...

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What Are the Dangers of Using Non-Profit Consumer Credit Counseling?

The term "nonprofit" can lull consumers into a false sense of security about a credit counselor, but some nonprofit credit counselors are fronts for fraudsters or companies trying to gouge customers. As long as you do your research and use a reputable counselor, the benefits of using a nonprofit credit counselor can far outweigh the disadvantages. Fraud Some credit counselors claim to be nonprofit, but are really just using this status to avoid regulation, according to Nolo, an online legal resource. A nefarious "nonprofit" credit counselor...

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How to Settle Collections & Debts

When you are unable to pay your bills and debts, a collection agency may acquire the debt. A collection agency collects a debt on behalf of the original creditor. An agency may have contacted you by letter or by phone in an attempt to collect a debt. Perhaps you ignored their calls or letters, but now you realize that ignoring a problem does not eliminate it. Paying your debts is essential if you want to buy a house or obtain other types of loans....

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Oklahoma Alimony Garnishment Rules

In Oklahoma, if you do not pay court-ordered alimony to your former spouse, your spouse can ask the court to garnish your wages. If the court agrees, your employer must withhold a portion of your wages each pay period to give to your former spouse until you have caught up with alimony payments. However, if you receive alimony rather than owing it, creditors may not garnish your alimony payments when collecting debts. Maximum Garnishment If a debtor owes money in Oklahoma, including back pay for alimony payments, a creditor may garnish up...

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What Does FAD Mean on a Credit Report?

Your credit report is a history of your significant financial activities, and it provides a snapshot of your present financial status as well as behavioral patterns. In the United States, three main credit reporting agencies keep track of such data. The term FAD is used only by one of the agencies and refers to the date your file was last updated. Basics A credit report is essentially your financial score card. It includes your credit and loan histories, credit checks by lenders, defaults, bankruptcy filings, your credit limits and other...

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Debit Card Rules

There are a lot of rules and regulations when it comes to using your debit card. Adhering to the terms outlined in your agreement can help you avoid fees and limit your liability if you were to be the victim of fraud or identity theft. If you lose your card, contact your bank immediately so a representative can cancel it and issue you a new one with a different card number. Debit Transactions You can use a debit card to make purchases at retail outlets that accept Visa or MasterCard. When purchases are made, you have the option of making...

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How to Request a Permanent Fraud Alert for the Deceased

The increase in identity theft and credit card fraud has led the credit-reporting companies to develop several methods of consumer protection. One of these methods is called a fraud alert. The company places a fraud alert on a credit report when there has been some fraudulent activity involving the credit cards or Social Security number of the person. Fraud alerts are notations on the account that alert potential new creditors to an increased chance...

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How to Find the Right Prepaid Credit Card

Prepaid credit cards have a number of uses. One-time use prepaid cards are typically used as gift cards. Reloadable cards function as substitutes for unsecured credit cards, and if you don't have a bank account, a reloadable card can also function like a checking account. You can have your paycheck directly deposited to the card, then withdraw it as cash or use it to make purchases. Some cards offer online account management, and others can receive...

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How to Deal with Bill Collectors when they Call

Best ways to handle bill collectors when they call. Instructions 1 When bill collectors start calling you, first thing is to be polite. Learn to be polite to the person calling from the collection agency. They are just doing their job and if you giving a nice reaction most of the time will make the bill collector more understanding and they will be nice back. Do not answer the phone with angry because and angry reaction will only fuel the anger from both side. 2 Try setting up a payment plan, most bill collectors are willing to except...

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How to Repair Credit Reports With the Bureaus

Your credit report determines your credit score, which in turn determines whether or not lenders will be willing to loan you money at a reasonable interest rate. Even if you do not intend to take out a loan in the near future, it is vital that you regularly monitor your credit report for errors. Credit reporting errors may remain on your report for seven years or longer and can have an significant negative impact on your score. In addition, credit...

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What Percent Will Collection Agencies Settle For?

When a debtor doesn't pay his bill, the creditor pursues him for money at first, but eventually it will assign the debt to an outside collection agency. If you still do not pay the bill, the account will probably be sold to a debt buyer or another collection agency. A collections company will work to collect at least a percentage of the money owed. Why Settle? A collection agent is paid a commission for collecting the debt that is listed with them. If the original creditor still owns the account, but is using a collection agency to help...

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Is Credit Card Settlement Bad?

If you're having difficulty making credit card payments, the promise of drastically reducing your payments through debt settlement may be alluring. However, debt settlement can do serious damage to your credit rating. Unless delinquency has already severely damaged your credit score, and you are on the road to bankruptcy, another option may be preferable. Definition Credit card settlement, or debt settlement, is an arrangement in which a...

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