Being Sued for Debt - Part II

Being Sued For Debt
By John Hurley

Being sued for debt is not a fun thing. If you do not make adequate arrangements with your creditors or the collection agency representing them, they can go to court and seek a Judgment against you.

After that happens, they can garnish your wages for up to 50 percent of what you make each pay period. They can also seize your assets including any bank accounts, cars, or even real property you own.

Obviously, you don't want to let it get this far.

If you are being sued for debt, you need to take action right away.

The first thing you need to do is to respond to the lawsuit. If you do not respond, the creditor will get a Default Judgment against you. This means that you won't have the chance to tell your side of the story or let the Judge know the extenuating circumstances.

After you have responded to the initial paperwork, you will probably get a court date. Now, it is likely that everything will happen quite quickly. Unlike the Judge shows on daytime television, the Judge in the courtroom doesn't have much time to spend on each case so you can expect the whole hearing to be over in a matter of mere minutes.

It is best if you can hire an attorney to represent you. While many people who have a mound of bills feel that they cannot afford a lawyer too, the fact is that unless you are versed in the law, you can really destroy your options.

If you are being sued for debt, take action. Don't let the creditors walk all over you.

If you have fallen into the trap of easy credit, and found yourself over your head in debt, there is help! Go to http://www.helpfordebt.org to reach out to organizations that can assist you in reducing your debt - sometimes up to 50%. You will learn to make - and stick to - a budget and they will help to negotiate your credit card and other bills down.

You are not alone. Many other people who were in exactly the same circumstances as you are have found relief through the programs offered through http://www.helpfordebt.org

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Can I negotiate a Credit Card Reduction?

If you are burdened with thousands of dollars of debt and have no good way of paying it all off, you may be wondering "Can I negotiate a credit card reduction?" The answer is yes, but there are some things to keep in mind.

First of all, the credit card companies want to get as much of the money they loaned back. They are not in the business of giving their money away.

But sometimes they realize that they have made loans that you cannot pay back. In this case, you have either stopped paying or are threatening to go into bankruptcy protection.

If you do either of these things, the credit card company will not see any of their money. So, they are willing to negotiate a credit card reduction in order to recoup some of the money they have lent.

In general, you are most likely to qualify for paying a lesser amount if you don't have assets to seize or you have a low income.

In general, if a reduction is granted, it will be at 75 to 80 cents on the dollar. A $5000 loan could become $4000 under a typical scheme. There are cases, however, when people have been able to cut their debts in half. It depends on the creditor's perception of your ability and willingness to pay.

You should know that any reduction will further blacken your credit. It is always better, from a credit score standpoint, to pay off your bills in full.

So, the answer to "Can I negotiate a credit card reduction?" is yes. You just have to know how to do it.

If you have fallen into the trap of easy credit, and found yourself over your head in debt, there is help! Go to http://www.helpfordebt.org to reach out to organizations that can assist you in reducing your debt - sometimes up to 50%. You will learn to make - and stick to - a budget and they will help to negotiate your credit card and other bills down.

You are not alone. Many other people who were in exactly the same circumstances as you are have found relief through the programs offered through http://www.helpfordebt.org

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Being Sued for Debt - Part I

Being Sued For Debt When the Bill is Old and Long Forgotten
By John Hurley

Being sued for debt when the amount owed is old and long forgotten is no fun. Unfortunately, there is no statute of limitations on a bill. If you ignore your financial problems, they don't just go away. Years later, when you are in a more comfortable financial position, the creditors can come back and collect on you.

Some people think that if they don't pay the debt, it goes away after 7 years. While it is true that it goes off your credit report, the legal obligation to pay does not go away.

Other people think that if the credit card company reports the bill as a "charge off" and deletes it from their books that it relieves them of their responsibility to pay.

Neither of these situations is true and faulty assumptions can lead to you being sued for debt that you thought was gone and buried.

If a collector contacts you regarding an old debt, you need to get all of the information right away. You may have lost the records or forgotten how much you owed in the first place. But don't be surprised if the amount has ballooned as a result of years of compound interest.

Hire a debt negotiator right away to help you deal with this situation. If the collection agency pursues the situation in court and gets a Judgment against you, it could result in your wages being garnished or the loss of property including bank accounts, automobiles, and even your home.

If you are being sued for debt - even if it is old bills - don't let the situation lie dormant. It will come back to bite you.

If you have fallen into the trap of easy credit, and found yourself over your head in debt, there is help! Go to http://www.helpfordebt.org to reach out to organizations that can assist you in reducing your debt - sometimes up to 50%. You will learn to make - and stick to - a budget and they will help to negotiate your credit card and other bills down.

You are not alone. Many other people who were in exactly the same circumstances as you are have found relief through the programs offered through http://www.helpfordebt.org

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Can a Collection Agency Sue for Debt? Part II

Can a Collection Agency Sue For Debt?
By John Hurley

Can a collection agency sue for debt? Many people who are over their heads with credit cards, car loans, and other bills want the answer to this question. Unfortunately, if you are behind on your bills, a collection agency can pursue remedies through the court system.

But they have to do it legally.

The Federal Trade Commission (FTC) has specific regulations that cover debt collection agencies. The Fair Debt Collection Practices Act keeps creditors from using deceptive, abusive, or unfair practices. These include threatening violence or harm, publishing your name in a newspaper or online, misrepresenting the amount you owe, telling you that you will be arrested if you don't pay, and contacting you by postcard.

Only companies which collect money on behalf of others are covered by this law. There are other regulations that cover contacting you as well. Debt collectors can only call you between 8 a.m. and 9 p.m. They may not call you at work unless you give them written permission to. That's all well and good. But it still leaves the question "can a credit card company sue for debt?"

Unfortunately they still have the remedy of going to court and getting a Judgment against you. At that point, they can execute the Judgment and potentially seize any assets including bank accounts, cars, or even real estate. They can also garnish your wages. You do have options though.

You can negotiate the amount down. The collection agency may require that you pay a lower lump sum or they may be happy to get the amount over a set amount of time. If you cannot negotiate successfully on your own, enlist the aid of a debt reduction company.

Finally, you have the option of declaring bankruptcy. At this point, none of your creditors can pursue court action against you.

So, in sum, the answer to "can a credit card company sue for debt?" is yes.

If you have fallen into the trap of easy credit, there is help! Go to http://www.HelpForDebt.org to find the organizations that help millions of Americans get out and stay out of debt.

Don't bury your head in the sand and hope the problem will go away. It never does. But, that doesn't mean that things are necessarily as bad as they seem. At http://www.HelpForDebt.org , you will be paired with an organization that will negotiate your credit cards and other bills down and get you on a budget you can live with. You fill out a simple six question form and you will be on the road to financial recovery today.

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How Do I Pay Down Debt Accumulated Over the Years - Video

Can A Collection Company Sue For Debt - Part I

Can a Collection Agency Sue For Debt? Sadly Yes - Here's How to Avoid That Situation
By John Hurley

Can a collection agency sue for debt? Sadly the answer to this question is yes.

When you default on any bill, the creditor has the option of turning the debt over to a collection agency. The collection agency has a variety of means to get the money you owe.

For instance, they may contact you at home or send you letters demanding that you pay. If none of these tactics work, they may resort to going to court and suing you.

When they go to court, they may get a Judgment against you. Once they have a Judgment, they can garnish your wages and seize any property you have including bank accounts, cars, and real property.

You don't want to let it get to this stage. Once a Judgment has been issued against you, you have few options.

That is why you want to get help as soon as possible. If you cannot negotiate with the collection agency directly, get a lawyer or a non profit debt relief agency to help you.

A debt relief organization may be able to help you into a debt consolidation loan. Then you will only have one bill to pay each month and you will slowly pay down all of your debts in one lump sum.

Another route for people who have a lot of debt is to declare bankruptcy. Most kinds of debt can be wiped out during a bankruptcy proceeding and you will not be liable for any of the bills anymore.

Can a collection agency sue for debt? Yes. So don't let it get that far.

If you have fallen into the trap of easy credit, and found yourself over your head in debt, there is help! Go to http://www.helpfordebt.org to reach out to organizations that can assist you in reducing your debt - sometimes up to 50%. You will learn to make - and stick to - a budget and they will help to negotiate your credit card and other bills down.

You are not alone. Many other people who were in exactly the same circumstances as you are have found relief through the programs offered through http://www.helpfordebt.org

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Affordable Debt Consolidation - Video

This video is for all the people out there worried about affordable debt consolidation.


www.HelpForDebt.org can help you with affordable debt consolidation.