Good news! YES, There is a way to stop a wage garnishment WITHOUT bankruptcy!

If you are facing financial difficulty and get behind on your credit card payments, the creditor may choose to seek legal measures to recover the debt.

BUT, IT IS VERY IMPORTANT THAT YOU KNOW:

• A creditor cannot just decide to garnish your wages
• A creditor cannot just decide to levy your bank account
• A creditor cannot take you possession!

A creditor will usually follow the following steps to recover delinquent debts:

• Calls, calls, calls!  Click here to learn how to STOP THE CALLS
• Nasty letters with threats of ruining your credit, possible legal action, etc.
• And then, after about 4-6 months, if they are unsuccessful, they may decide to file a complaint for the debt you owe.

After they file a complaint in your local county courthouse, you will receive a SUMMONS.

DON'T PANIC!!!

The summons will state that you have 20 or 30 days to respond with an "ANSWER". 

An "answer" is what you would present if you feel that you do not owe the debt.

Since you owe the debt (even though the interest rates and fees are ridiculous), the fact is that when you signed up for the card, you agreed to all of the fees. (Remember all that fine print you skipped over?)

Anyway, so after about a month or so after receiving the SUMMONS, if an agreement cannot be reached with the creditor, they may apply for a DEFAULT JUDGMENT.

Once the Default Judgment is awarded to the creditor (plaintiff), then they can apply for a WRIT OF GARNISHMENT.

Each state varies as to how much can be garnished and what income is exempt from garnishment.

In most states, the garnishment is 25% of your net (after taxes) take home pay.  For most people who are already in a financial hardship, this would be terrible!

If you receive income from:

• Social Security benefits
• Supplemental Security Income (SSI)
• Welfare or public assistance
• Spousal support or child support
• Public or private pensions
• Veterans benefits and/or loans
• Disability proceeds of life insurance policies
• Cash surrender value of life insurance policies
• and many others

Click here to get a list of exempt wages in Oregon.

OK, so if you don't meet the exemption requirement and you get a garnishment, here's what you have to do:

Contact the creditor or the creditor's attorney.

In most cases, once you have provided proof (BASIC BUDGET WORKSHEET), you should be able to arrange a STIPULATED AGREEMENT.

In a STIPULATED AGREEMENT, the attorney agrees to STOP THE GARNISHMENT and NOT PROCEED with further legal action as long as you send in the agreed amount each month.

This amount should be less that what the garnishment would have been.

IT IS VERY IMPORTANT THAT YOU NEVER MISS AN AGREED PAYMENT!

If you do, they will most likely VOID THE AGREEMENT and start the wage garnishment again and will not be willing to re-negotiate another Stipulated Agreement.

SOUND CONFUSING?  We may be able to help.  Simply CLICK THE LINK BELOW or give us a call at 1-877-492-4109.

If you have had a debt "forgiven", and receive a 1099-C, how do you avoid paying taxes?

Any amount of "forgiveness" over $600 can be reported to the IRS and if so, then you would receive a 1099-C form.  The IRS says that any debt that is settled for less than the full balance must be included back into your income and you must pay the resulting taxes!

Instructions from the IRS can be found in IRS 4681.

In the instructions, you will find an explanation of "INSOLVENCY".  Of course, when reading anything from the IRS, it is not very easy to understand or interpret.

Basically, the information states that if at the time of the forgiveness, you were INSOLVENT, then the amount of forgiveness IS NOT INCLUDED as additional income and therefore you would not pay any additional tax.

Let's look at an example:

After many harassing phone calls from your creditor, you are able to settle your account for less than the balance.  When it came time to file your taxes, you receive a 1099-C which would lists the debt, the debtor and the amount that was "forgiven".

What do you do now that you have received a 1099-C?

First you need to determine if you were INSOLVENT at the time the debt was forgiven. To determine if you were insolvent :

1.  List all of you assets (things you own that has positive equity):

• Equity of your home
• Net (depreciated) value of your cars, boat, etc.
• Net value of jewelery, stocks, bonds, etc.
• Savings or investment accounts
• Cash in the bank

2.  List all of the debt you had at the time of forgiveness:

• Mortgage (1st and 2nd)
• Auto, boat or other loans
• Credit card debt
• Medical debt
• Personal loans to...

3.  Now subtract your LIABILITIES (that's all the debt) from your ASSETS.

Is the result a NEGATIVE number?  If so, you WERE INSOLVENT!

When filing you tax return, you will need to complete IRS form 982 and submit with your tax return.  Most accountants and/or tax preparers are not aware of the exceptions to paying tax on "forgiven" debt, so you need to be very careful.

Although we are not attorneys nor tax accountants, we can help guide you through the process.

If you would like a FREE CONSULTATION, just let us know.

BOTTOM LINE...DON'T PAY ANY MORE TAX THAN YOU ARE LEGALLY REQUIRED...IT'S YOUR MONEY AFTER ALL!!!

 photo by: MoneyBlogNewz

You CAN correct errors on your credit report in 3 easy steps!

Step #1 - Get a Copy of your Credit Report

If you are willing to spend a little time and effort, there is no reason to spend hundreds of dollars paying someone else to correct errors on your credit report.

Start by pulling a current copy of your credit report. You can do this absolutely free once per year at www.annualcreditreport.com. 

This site allows you to access your credit report from all three of the major credit reporting agencies (Experian, Equifax, & TransUnion)

If you want to see your credit score, you will have to pay a small fee.  However, if you are just looking to clean up your credit report, there is really no reason to pay for your score at this time. 

Step #2 - Take a Close Look at Each Credit Report

If you have paid off old accounts and they are still showing a balance or if it was charged off and moved to a collection agency, you can dispute the entry and it will be removed.

Most disputes can be addressed online.  Each agency will have it's own procedure, but basically you will need to provide them with proof of payment such as:

• A statement from the creditor or collection agency showing the account has been paid.
• A canceled check showing the payment was processed.
• A bank statement showing canceled check or check-by-phone entry to the agency.

Here are the links to dispute errors:

• Experian Disputes
• Equifax Disputes
• Transunion Disputes

Step #3 - Follow Up!

Correcting or removing errors on your credit report may take 30-60 days. You should receive an email or letter as to the status of your dispute, If you don't, go back online to see what's been done.

If the credit bureaus have not made the correction, make a follow up dispute!  If you have provided proof (as above) that this account has been paid or settled-as-agreed, they will eventually correct the error, so don't give up.

You may need to call the agency and speak to a representative if you can't find any updates online.

Experian:       888-397-3742

Equifax:         800-685-1111

TransUnion:  800-916-8800

If you have accounts that you have not paid on in some time, we may be able to negotiate a settlement at 50% or less!

photo by: TrinityCreditServices

Can a Debt Collector Garnish Retirement Income?

The answer is NO!

First of all, if you fall behind on your credit card or other debt payments, your creditors don't have the right to automatically garnish any sort of income.  Before a creditor can get a writ of garnishment, they have a whole set of hurdles to get over.

The creditor will write you multiple harsh letters and call you over and over!  They will use many dirty tricks of debt collection to try and collect the debt.

If the collector is unsuccessful in getting you to pay up, then they may decide to file a complaint and you would receive a SUMMONS.  If you owe the debt or you decide not to appear in court to fight the summons, your creditor will be awarded a DEFAULT JUDGEMENT adn they can apply for a WRIT OF GARNISHMENT.

If your only source of income is from one of the following, they CANNOT GARNISH IT!!!

• Social Security benefits
• Supplemental Security Income (SSI)
• Welfare or public assistance
• Spousal support or child support
• Public or private pensions
• Veterans benefits and/or loans
• Disability proceeds of life insurance policies
• Cash surrender value of life insurance policies

WARNING:

If you deposit your retirement income (pension, Social Security...) together with any other source of income (part-time job...), then THE ENTIRE ACCOUNT COULD BE SUBJECT TO A BANK LEVY!

As long as you DO NOT CO-MINGLE your retirement income with any other source of income, then the retirement income is safe!

If you are struggling to pay off your debt, or know someone who is being threatened with a garnishment, our Debt Settlement team can help you settle your debts for 50% or less that what you owe!  Give us a call at 1-877-492-4109 or click this link for a FREE Debt Consultation.

If you are delinquent in paying your debts, a creditor can decide to pursue all legal avenues including wage garnishment.

But before you panic, understand that a creditor cannot garnish your wages just because you are behind on credit card or other unsecured debts!

Before they can apply for a WRIT OF GARNISHMENT, a creditor will:

• Contact you in writing or by phone in an attempt to collect the debt and/or work out a repayment plan.

• If the creditor's collections efforts are unsuccessful, they will turn the account over to a collection agency.  This collection agency will also contact you in writing and by phone to collect the debt. In fact, they will most likely call you multiple times a day at all hours.  You do not have to put up with this.  To learn what collectors can and can't do read more about Fair Debt Collection Practices.

• If the collection agency's attempts to collect the debt are unsuccessful, they may decide to retain a local attorney to file a claim.  If they are a ATTORNEY/COLLECTION FIRM, they will file the claim themselves.

• If this happens, you will receive a SUMMONS and it will basically state that you have 20 or 30 days (States vary as to how long you have) to "ANSWER" the claim.  An "ANSWER" is you response to the claim if you feel that YOU DO NOT OWE THE DEBT CLAIMED IN THE SUMMONS.

• It usually takes about 45-60 days before a court date is set. NO, YOU DO NOT HAVE TO GO TO COURT.  This is just a formal hearing to award the judgment to the plaintiff (creditor) by default.  Default meaning that you did not dispute the claim.

• With the DEFAULT JUDGMENT, the creditor can now apply for a writ of garnishment.

What happens once your creditor is awarded a Writ of Garnishment?

In most cases, an agreement not to pursue wage garnishment can be negotiated (if you act quickly).

A STIPULATED AGREEMENT would state that you will make a payment every month until either the full amount or a slightly reduced amount is repaid.

Depending on your state of residency, there may be an interest rate limit(Oregon is 9%, Washington is 12%).  Be sure to check your state's limit.

As long as you make your payments on time, the creditor will not act on the wage garnishment.

What types of income are exempt from Wage Garnishment?

The following types of income are exempt from wage garnishment:

• Social Security benefits
• Supplemental Security Income (SSI)
• Welfare or public assistance
• Spousal support or child support
• Public or private pensions
• Veterans benefits and/or loans
• Disability proceeds of life insurance policies
• Cash surrender value of life insurance policies
• and many others

There are also exemptions and limits as to the calculation final amount of wage garnishment.  We have found that most employers are unaware of these exemptions and limitations, so make sure you know your rights!

In Oregon for example, if you earn below a certain amount, you may be fully exempt from wage garnishment!  Click her to find out more!

Finally, if all of this seems a "little too much for you to handle", we can help. One of our Debt Solutions Specialists can help you decide what is the best next step for you.  Give us a call at 1-877-492-4109 or simply click on the link below for a free debt elimination consultation.

When you contact the Debt Settlement Company (DSC), do you fee like they are more interested in getting you to sign up or do they take the time to do a complete analysis of your particular financial situation?  If so, be careful.  Read on to learn what to look for in the Best Debt Settlement Companies.

#1  The best debt settlement companies want to know several things about you and the debt you have incurred such as:

• What type of debt do you have?
• Is is secured or unsecured?
• How did you get too much debt or behind on your debt?
• Are you employed?
• What is your monthly budget?  In other words, how much to do bring home and how much do you pay out each month. VERY IMPORTANT!

• If you are retired, is your retirement income (pension, retirement fund, social security) deposited seperately and NOT CO-MINGLED with other income you might earn from another job.  This is critically important!

Click HERE for a FREE Debt Settlement Consultation!

#2 The best debt settlement companies will assign you a counselor or account representative that you can always contact with any question or concerns.

If you feel like you are getting "shuffled from one person to another", be wary!

#3 The best debt settlement companies charge fees that are consistent with the industry and comply with their particular states laws or guidelines.

#4 The best debt settlement companies will rate very high with their local Better Business Bureau (BBB). 

It is not necessary for them to be accredited with the BBB, but make sure to check out any complaints or issues this company may have had.  The best debt settlement companies should have an A  rating or higher!

Got to --> the Better Business Bureau

#5 Finally, the best debt settlement companies will follow through with you after you have requested information and or a financial analysis.  If you have to call them back or feel like they are "too busy" to help you,...keep looking!

If you have old credit card debt, you may be wondering how long a collector has to collect.

There was an interesting article in our local newspaper "The Oregonian" today, 4.2.12 entitled "More time for debt collectors".

Seems that three people sued the credit card/debt collectors (specifically Daniel N. Gordon, an attorney in Eugene that specializes in debt collection) that the creditors could not sue after 3 years because the statute of limitations was only 3 years in the state of Delaware (the state where the credit card company lists as the home office).

The Oregon Court of Appeals ruled that a creditor can have as long as the individual's state's statutes of limitation to attempt to collect a debt.

In Oregon and Washington, the statute of limitations is 6 years.

What does that mean to you?

If you have old credit card accounts that you have not paid on for over 6 years you have a couple of rights that you need to know:

If you see that debt (longer than 6 years) on your credit report, you can request that it be removed as the statutes of limitations has expired.

The credit reporting agency (usually Experian, Equifax or TransUnion) will investigate and if you are correct, remove the item.

In some listings on a credit report, you will see a notation of when this account is scheduled to be removed due to the statute of limitations being exceeded.

It is important for you to know what the statute of limitations is for your state.  You can find a listing (although you should double check on line at your State's official site) at:

                              LISTING OF STATE'S STATUTES OF LIMITATIONS

Another reason it is important for you to know your rights is if a collector sues by filing a claim in the county court of your residency, you can dispute the claim if the statute of limiations has expired (for your state of residency).

WARNING!

You need to be aware of the term "re-aging" debt.  If a collector calls and you agree to make a small payment to stop further action, etc., the statute of limitations clock is reset and basically starts over!

Therefore, if you have old debt, is is NOT WISE to talk with a collector or to make any acknowledgment of the debt.

According to the Fair Debt Collection Practice Act (FDCPA), if you make a request in writing to the collector, they must stop calling you at home or at work.

In making the request, DO NOT ACKNOWLEDGE THE DEBT!

State that you dispute the validity of the debt and that you are not responsible.

Demand that they cease from calling you at work and home or that you will report them to your state's Attorney General's office.

If you would like help, here's a link that will show you HOW TO STOP COLLECTION CALLS.

If you want to resolve an old debt rather than risk legal action from collectors, you should consider a Debt Settlement Program, where you may be able to settle the debt at 50% or less and have it removed from your credit report!

For more information, click the link below for a FREE CONSULTATION!

Have funds been taken from you bank account by one of your creditors?

If you get behind on your payments to your creditors, they can legally seize funds from your bank account!  Are you behind on any debts such as:

• Credit Cards
• Pay Day Loans
• Personal Loans
• Car Reposessions
• Medical Bills
  

If you are behind on your payments, don't worry quite yet.  A creditor can take a number of steps to collect, but they cannot contact your bank and take money out of your account without a WRIT OF GARNISHMENT OR LEVY.

A creditor can attempt to collect an unpaid, unsecured debt with:

• Phone calls (stop the collection calls --> CLICK HERE)
• Letters
• Summons to be awarded a DEFAULT JUDGMENT

Even if you get behind a month or so on a credit card bill, your creditor cannot go to your bank to request funds without first going through a series of legal attempts to collect.

Having said that, a creditor/collector is PROHIBITED from violating the Fair Debt Collection Practices Act (FDCPA). If you feel that you are being harassed by creditors, take some time to LEARN ABOUT YOUR RIGHTS.

If a credior has been awarded a judgment concerning the debt you owe, then they can go after your bank funds!

There are ways to stop a bank levy or to recover funds taken or frozen due to a writ of garnishment or levy having been presented to your bank. We can help.  Give us a call or click the link below for a free consultation!

Can a debt collector call me at work?

Creditors are notorious for violating the Fair Debt Collection Practices Act (FDCPA).  This LAW is supposed to protect consumers from unscrupulous and ILLEGAL debt collection activity!  However, most consumers are unaware of their RIGHTS UNDER THE LAW and are intimidated.

The Federal Trade Commission (FTC) has very good information that every consumers should understand.  Click her for a FREE GUIDE FOR CONSUMERS.

A debt collector is PROHIBITED from calling you at work IF they have been told (orally or in writing) that you are not allowed to receive calls at work.  If you are getting calls at work, here's what you need to do to STOP THE CALLS.

1. Write a letter demanding them to stop contacting you at home or at work.
2. Send the letter by registered mail so that you have proof that the collector received it. (pay for a "return receipt")
3. Make a copy of your letter. 

Once the collector receives your letter, they may not contact you again, with two exceptions:

• A collector can contact you to tell you there will be no further contact or
• A collector can contact you to let you know that they or the creditor intend to take a specific action, like filing a lawsuit.

If they continue to call, you can report their ILLEGAL ACTIVITY to your state's Attorey Generals office.

Did you know? A debt collector in prohibited from:

• Calling before 8am or after 9pm at night.
• Using harassment such as making threats, using obscene language or repeatedly calling many times a day.
• Making false claims such as claiming to be an attorney or government representative.
• Misrepresenting the amount you owe.
• Making false statements.  (They cannot say that you will "go to jail" or "be arrested" or even claim to take legal action if in fact, they do not do so.)

If you have been receiving collections calls and would like help with stopping the calls and eliminating the debt once and for all, our Solutions Specialist are here to help.  Give us a call at 877-492-4109 or click on the link below!

Can Social Security be garnished?

"I got a call today and the collector told me that if I didn't send them money today my social security benefits could be garnished." -Anonymous

Before you start to panic, you need to know your legal rights according to the Federal Trade Commission and the Fair Debt Collection Practices Act. 

The following benefits ARE NOT SUBJECT TO GARNISHMENT:

• SOCIAL SECURITY BENEFITS
• SUPPLEMENTAL SECURITY INCOME (SSI)
• VETERANS BENEFITS
• CIVIL SERVICE and FEDERAL RETIREMENT and DISABLILTY BENEFITS
• MILITARY ANNUITIES and SURVIVOR'S BENEFITS
• RAILROAD RETIREMENT, MERCHANT SEAMAN WAGES
• LONGSHOREMAN'S and HARBOR WORKER'S DEATH and DISABLITLY BENEFITS
• FOREIGN SERVICE RETIREMENT and DISABILITY BENEFITS
• FEDERAL EMERGENCY MANAGEMENT AGENCY FEDERAL DISASTER ASSISTANCE

Although these benefits are EXEMPT, it is very important that you are extremely careful about the funds in your bank account!

As long as the funds in your checking or savings account only came from benefits (such as above) and ARE NOT CO-MINGLED with income you may earn in addition, then your account cannot be levied.

CO-MINGLED means that you deposit exempt benefits (such as above) with other income:

• W-2 income from you job
• Part-time income
• Funds your receive from any other outside sources

 DO NOT DEPOSIT WITH THE FUNDS FROM

YOUR EXEMPT FUNDS!

If you have another job, make sure to either just cash that check or open another bank account, preferably in another bank for those funds.

If you have a substantial amount of un-secure debt such as credit cards, personal loans, collections, or medical bills, and are not able to keep up with the payments, you need help!

Since most debt collectors are professionals, trained to say anything in order to get you to send them money, you should consider the services of a DEBT MANAGMENT COMPANY.

They may be able to:

• Limit or stop the harassing calls
• Negotiate a reduced settlement help lower your payments and fees
• Help improve your credit score as debts are paid off
• GIVE YOU PEACE OF MIND!

Did you receive a Summons? If so, we can help you. Request more information or give us a call for a FREE consultation!

photo by: aflcio