Even though you are behind on your debts, your creditors do not necessarily have the right  to garnish your wages!  An Oregon wage garnishment can be stopped, but you must understand the process.

Once your account is delinquent 150-180 days , and you have received numerous calls and letters, your account will usually be turned over to a collection agency. If, after the collection agency has called you morning noon and night, they may decide to FILE A COMPLAINT.

After the collection agency files a complaint, you would receive a SUMMONS.  If you have received a SUMMONS, you can read more by clicking here -->>  "I Received a Summons".

Although it can be frightening to have someone knock on your door and serve you with a Summons, try to stay calm.  Most of the time, a STIPULATED AGREEMENT can be negotiated.  When a stipulated agreement is reached, the collections company will agree to accept payments and not apply for a garnishment.

A Stipulated Agreement can help if:

• You currently receive W-2 income from your employer.
  
• You usually keep a substantial amount of money in your bank account.

Why is a Stipulated Agreement better than a Wage Garnishment?

In a wage garnishment, an employer would be forced to deduct an average of 25% of your net take home pay each pay period! For most people, this would prevent them from paying their important bills like the mortgage or rent, food, and utilities.

By accepting a stipulated agreement, your monthly payment should be quite a bit less that the amount you would be garnished.

What types of income CAN'T be garnished?

• Pension
• Social Security
• Unemployment
  
• Disability
  
• Self-Employment Income (It is very difficult for a wage garnishment to be enforced as most self-employed people take a very small "income" and in most states, this would be exempt from wage garnishment.)

*If you have any income coming in other than those listed above, do not co-mingle the two income sources!  If you deposit your Social Security check into the same account that you deposit your paychecks from a regular job, ALL of the funds would be subject to garnishment.

Can you Stop and Oregon Wage Garnishment and settle the debt for less once you have been served the summons?

YES!  If you have access to funds that equal anywhere from 50% -70% of the balance, you may be able to negotiate a LUMP SUM SETTLEMENT.

However, once the judgment has been awarded, and the Writ of Garnishment has been applied, the collection agencies are not usually willing to take a low settlement.

KEY TAKEAWAY -  THE WORST THING YOU CAN DO  IS TO DO NOTHING!

If talking to your creditors and/or collection agencies frightens you, our professional and experienced Debt Negotiators can help!  Give us a call or click on the link below for more free information.

                                 

DIY credit repair is not as hard as you think!

If you think you have errors on your credit report, there are steps you can take to correct them without paying a so-called "credit repair company".

BY THE WAY...DO NOT FALL VICTUM TO SO CALLED CREDIT REPAIR SCAMS THAT CLAIM THEY CAN REMOVE NEGATIVE ITEMS AND INCREASE YOUR CREDIT SCORE...FOR A FEE!

First, you need a FREE COPY OF YOUR CREDIT REPORT.

Each of the three major credit reporting agencies will have on line information on how to submit challenges to errors on their reports:

• TransUnion
• Experian
• Equifax

1.  Get proof of payment or settlement for the account in question:

Let's say you paid off a credit card bill and yet there is still an outstanding balance showing either to the original creditor or to a collection agency.

• Request copies of cancelled checks from your bank
• Print online report from your bank
• If you have the last statement show a zero balance...even better!

2.  Follow the instructions for each reporting agency to submit or open a challenge to your report.

You will be assigned a FILE NUMBER.  Make sure to write it down or better yet, make a copy of the page.

3.  The credit reporting agency will contact the creditor about the account in question. 

This may take up to 30-60 days.

4.  If you do not receive an email or letter within 45 days, check back with the credit reporting agency to get an update on your open file.

Your proof of payment should do the trick, but in some cases you may need to MAIL copies of proof of payment with explanation. The point is...DON'T GIVE UP! The credit reporting agencies want to provide an accurate report and will correct errors when proven to be errors.

If you are having trouble paying off credit card or other unsecured debts, we can help!

If you find that you have legitimate balances on some of your credit card accounts, a Debt Settlement Plan could be the answer!

 

 

If you want to improve your credit score, you need to know how to remove a judgmentfrom a credit report.

If you have had a JUDGMENT recorded against you, then it will show up under NEGATIVE ITEMS on your credit report.

A JUDGMENT tells anyone reviewing your credit:

• You failed to pay a credit account as promised
• Attempts to work out a repayment plan failed
• The creditor filed a COMPLAINT and you received a SUMMONS
• The creditor was awarded a JUDGMENT by default

If you do not have a current FREE CREDIT REPORT from all 3 of the major report agencies:

• Experian
• Equifax
• TransUnion

From the Credit Report, find out where or what court the judgment has been recorded.

If there is a phone or fax, great!  If not, do a little searching (yellowpages.com) to find.

Fax or mail:

• Proof of payment or release of the judgment.  A copy of the settlement agreement or actual letter from the collection agency or law firm is even better.
• Copy of cancel check(s) from your bank records.
• A brief explanation why you are requesting the judgment to be removed.

Follow the procedure for each agency. Sending to one doesn't do anything for the others!

In some cases, you can make your request online.

It may take 45-60 days to get a response or see the jugment removed.  The Credit Reporting Agency should email or mail their decision.

If positive, YOU DID IT!

If not, then try again.  You may want to call.

The credit reporting agencies want to provide accurate, up-to-date information.  As long as you have the proper "proof and/or explaination" of why the judgment should be removed or classified as "paid-as-agreed", they will work with you.

 

If you have a REVERSE MORTGAGE on your home, a creditor cannot garnish, levy or lien.

If you are one of the millions of people who have decided to get a Reverse Mortgage (RM) on your home to help your financial situation, and have other significant debt, you need to understand what a creditor can and cannot do.

I'm not going to discuss the pros and cons of a reverse mortgage, but only address the characteristics and how it would apply in a collection situation.

A reverse mortgage is a LOAN.  The company that sold you the reverse mortgage (RM) took into consideration how much net equity you had in your home.

Let's say it was $100,000 (doesn't matter if the home was paid for or not).

The RM company is LOANING you 70%-80% on the value of your home to be paid out:

• One-time lump sum
• Payments
• Credit Line (you use when you need to)

The RM company has determined that based on the net value of your home, your age and other factors, they  can LOAN you $XXX.00.

When you pass away or the home ownership is transferred, the LOAN, with interest, must be repaid. The idea is that at death or transfer of ownership, the RM and repayment cancel each out.

• The home owner wins and they were able to get at the equity of their home and remain living there.
• The RM company wins as they earn more money than they loaned through interest and fees.

So, can a creditor or collector GARNISH, PLACE A LIEN OR LEVY funds from your RM?

                 THE ANSWER TO ALL THESE QUESTIONS IS NO!   (BUT BE CAREFUL)

Since a RM is a loan, you do not own the home anymore.  You live there and everything stays the same, but you have "pre-sold" it to the RM Company.

Therefore, a creditor CANNOT garnish or place a lien.

What about the funds from the RM deposited in your bank account?

This is why I said "BE CAREFUL!"

A creditor that has been awarded a judgment for the claim they made against the debt you owe (credit card, personal loan, etc.) cannot apply for a garnishment or bank levy if the source to the funds are from:

• Federal Benefits (Social Security, Federal Retirement Income, Civil Service Retirement)
• Unemployment Income
• Dissability Income
• Alimony or Child Support
• Various other NON-EARNED INCOME sources including your RM income

HOWEVER....

If you CO-MINGLE funds from your RM or other sources above with the income you may be getting from a full or part-time job (W2 Income), then a creditor may be able to get at those funds.

The safest thing to do is to open up a separate bank account for the earned income and NEVER CO-MINGLE with the other sources of income.

 

 

Debt collector harassment can make your life miserable!

I read an article today from the Oreonian entiltled "Eugene woman sues after bill collector sends cops to house".

You can click on the link above to get the complete story, but here's a summary:

• Retired, 85 year old woman got behind on her Wells Fargo Mastercard
• Wells Fargo turned the account over to a collector
• Collector repeatedly calls and harasses her
• Collector uses one of the cruelist, unprofession and I think, illegal tactics that I've ever heard of.  He calls the police and tells them she is suicidal and of course they come to her house.
• As a result, they "forcibly" took her to an emergency room with a warning not to leave (according to the claim)
• Now she has additional medical bills from the fiasco!

I do not know what prompted the collectors action.  Hopefully, the lawsuit will sort this all out.

But, are you serious?  Can a debt collector harass a senior citizen to the point of possible suicide and not suffer severe consequenses? 

It seems so...but we have rights.  Hopefully her lawsuit will help.

The Fair Debt Collection Practice Act  is the law about what a collector can and cannot do, and in my opinion, this collector has violated the law.

According to the FDCPA, these are practices that are off limits for debt collectors?

Harassment

Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:

• use threats of violence or harm;
• publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
• use obscene or profane language; or
• repeatedly use the phone to annoy someone.

False statements

Debt collectors may not lie when they are trying to collect a debt. For example, they may not:

• falsely claim that they are attorneys or government representatives;
• falsely claim that you have committed a crime;
• falsely represent that they operate or work for a credit reporting company;
• misrepresent the amount you owe;
• indicate that papers they send you are legal forms if they aren’t; or
• indicate that papers they send to you aren’t legal forms if they are.

Debt collectors also are prohibited from saying:

• you will be arrested if you don’t pay your debt;
• they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
• legal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.

Debt collectors may not:

• give false credit information about you to anyone, including a credit reporting company;
• send you anything that looks like an official document from a court or government agency if it isn’t; or
• use a false company name.

Unfair practices

Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:

• try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law allows the charge;
• deposit a post-dated check early
• take or threaten to take your property unless it can be done legally
• contact you by postcard.

If you or someone you know (especially a senior citizen) is receiving harassing calls and/or illegal activity from a debt collector, you have options:

• Click here for a free guide on HOW TO STOP COLLECTION CALLS.
• Contact your states attorney general a file a complaint. 

           In Oregon, Click Here:

 

 

 photo by: BLW Photography

 

 

 

 

 

If you have fallen behind on your credit card payments, you know just how annoying the debt collector calls can be. Some people are so bothered by creditor calls that they change their phone number or even disconnect their phone to get some peace and quiet. 

Although your creditors have the right to attempt to collect an unpaid debt, a creditor must do this within the limitations for the Fair Debt Collection Practices Act (FDCP).

A CREDITOR CANNOT:

• Make frequent or harassing calls!  In other words, they cannot dial you you 10 times a day!
• Call you at work!  If you are getting calls at work, it could jeapordize your job and your employer will certainly not think well of you!
• Make threats of legal action without following through!  "If you don't send us money now, we will start a lawsuit against you".  Well, if they say it, they better start it, or you can file a complaint with your state attorney general.
• Call family or friend and tell them you are  delienquent!  They can call a family member or friend in an attempt to get information about how they can contact you, but they cannot discuss your debt with them or mention your situation in any way!

Download this FREE GUIDE -->

How To Stop Collection Calls

The best way to stop collection calls is to write a letter to the collector stating that you intend to pay your bill, but you cannot at this time.  Tell them that you are giving them legal notice according to the FDCPA to stop calling you immediately or you will report them to the attorney general.

It is best to mail the letter as registered mail so that you have proof that they received it.

After a collector receives the request in writing, they can only call you one more time to state they received it and what their intentions are in the future. If they call you again, it is time to to go online to your state attorney general's site and file a complaint.

You can try to simply fax the letter to the credior.  In most cases this will stop the calls, but legally the creditor does not have to stop without the written request by mail. In some cases, a creditor may honor you request by phone, but this doesn't happen often.

If you are intimidated by collectors, then we can help. Simply click the link below to find out about your options.

 

photo by: Mykl Roventine

If you have accumulated a substantial amount of unsecured credit card debt, you may be tempted to try Do It Yourself Debt Settlement.

Although it is possible, most people who are inexperienced in dealing with debt collectors end up paying much more than they should.

Why does Do It yourself Debt Settlement end up costing you more?

There are several reasons, but the most important is that debt collectors are for the most part, TRAINED PROFESSIONALS whose only job is to get as much money out of you as possible!

They don't care about your circumstances or why you have fallen behind, and since most of them are paid on commission, they can get mean when trying to get you to pay up.

Collection agencies and Law firms that deal with collections will throw around terms like:

• LEGAL ACTION
• LAWSUIT
• WAGE GARNISHMENT
• LEVY

This scares the average person into agreeing to a monthly payment plan they can't afford or a settlement for 75%-80% of the balance.  A reputable Debt Settlement agency knows how to deal with these collectors and how to get you the best deal possible.

Here is a real life example of a settlement that was just completed by our Settlement Specialists:

Our client was a single female and was unemployed for a long period of time. As a last resort, she used her credit cards to buy groceries, gasoline, and sometimes cash advances to pay her rent. 

One of her cards was a Visa Card and after charge-off was given to a collection agency.  After several unsuccessful attempts to "work something out" with the collection agency, she contacted us to find out what her Debt Relief Options were.

She decided that Debt Settlement was her best option, and our Debt Settlement specialists went to work!

The original balance was approximately $1,400, but after moving around from collector to collector , it was purchased by a "LAW FIRM".

The balance had grown to more than $2,500 as over $1,100 had been added in interest, late fees, and so-called legal fees.

After going back and forth with the collector, our Debt settlement Specialists were able to negotiate the debt down to just $700 which was 50% of the original amount but only 28% of the RIDICULOUSLY INFLATED current balance.

                                        Click Here to See the Actual Settlement Letter

Yes, it is possible for you to negotiate settlements on your own, but after 10 years of experience in helping hundreds of clients settle debts, avoid garnishment and bankruptcy, I believe in the long run the average person will end up paying much more than necessary.

If you need help settling your debts, our Debt Solutions Specialist are here to help.  

1-877-492-4109

Or simply click on the link below for a Free Debt Elimination Analysis!

 

 

There is a way to STOP WAGE GARNISHMENT, but it is easier to prevent than to stop!

Most states allow a creditor who has been awarded a judgment concerning a debt owed to apply for a writ of garnishment that would allow them to garnish up to 25% of your net income.

This would be devestating!

We get many calls asking us to help AFTER THE FACT, and although we often can and do stop wage garnishment, it is not easy. Before we share a couple of ideas or techniques to try, it is important that you understand the process of a wage garnishment:

When you don't pay the debt you owe (and for the purpose of this article, let's talk about a basic unsecured credit card), the creditor starts contacting you with letters and phone calls.

They can be very annoying and in some cases the creditors will violate the Fair Debt Collection Practice Act (FDCPA).  You can STOP the CALLS , but for now, let's talk about stopping wage garnishemnt.

If the creditor cannot get you to start paying back the debt, they may choose to file a COMPLAINT in your local county courthouse.You will receive a SUMMONS, usually hand delivered, that states that you owe the debt and have 20-30 days to respond with an ANSWER to the court.

The "ANSWER" would be your legal (has to be filed correctly and there usually is a fee) explanation why you dispute the "CLAIM" and don't owe the debt.  For 99% of those who receive a SUMMONS, they owe the debt (even though the interest and late charges added are ridiculous!), so disputing the claim is usually a waste of time and money.

At this point, YOU CANNOT IGNORE THE SUMMONS!!!!! 

If you have some money set aside, call the creditor or attorney and offer a SETTLEMENT or arrange to repay the debt in monthly installments (called a STIPULATED AGREEMENT).

A SETTLEMENT is an offer to settle the debt you owe for less than the full amount.  A creditor may accept an offer of 50%-75% if you can make it in a lump sum or possibly in 3 payments. 

A STIPULATED AGREEMENT is really just an agreement between you and the creditor/attorney to repay all of the debt at a reasonable monthly payment at a state limited interest rate. As long as you don't miss any payments, they agree to not pursue the wage garnishment.

Since they have the JUDGMENT, and know you are employed, they are guaranteed to receive 100% of the debt owed plus filing fees and court costs, so you are not in a very strong negotiating position.

If trying to Stop Wage Garnishment on our own sounds intimidating, you may need HELP! 

For a FREE ANALYSIS OF YOUR OPTIONS, contact one of our Debt Solutions Specialists at 1-877-492-4109 OR simply click the link below.

photo by: purpleapple428

 When you are searching the BEST DEBT SETTLEMENT COMPANIES, here are 3 questions to keep in mind -->

#1 Do they have a good rating with the Better Business Bureau?

• Look for companies that have a Better Business Bureau (BBB) rating of B+ or higher.  It takes a lot of work for a company to receive and maintain a high rating with the BBB.
• Watch out for complaints and DO NOT DEAL with a Debt Settlement company that has a long list of complaints!
• Don't worry about accreditation. The BBB is a network of private companies that make money rating companies. They offer an "accreditation" to companies for a large annual fee in order to make more money.  whether or not a company is accredited is not the issue.

#2 Can you call the Debt Settlement company and talk to someone? 

When you call in to a good Debt Settlement Company, you should be able to talk to a live person that will listen to you and work with you to find the best solution possible. 

• Can you understand them?
• Do they make you feel comfortable
• Are they listening to you or are they just trying to talk you into what they are offering?

A quality company seeks to find the right solution for your specific needs and debt settlement is not always the best fit!

#3  Does the Debt Settlement company's website give you plenty of information that without forcing you to "complete the form"?

Quality Debt Settlement Companies will provide a lot of information...FOR FREE, without enrolling in their program. Look for a company website that is informative, educational, and easy to understand.  You should be able to know what the company is about and what they have to offer before you give out your contact information.

Want to know if Debt Settlement is the best option for you?  Click on the link below or call

1-877-492-4109

to talk to one of our Debt Solutions Specialists.

 

 

The doorbell rings and you are handed a summons regarding one of your past due credit accounts.

What do you do when you receive a summons?

First…DON’T PANIC!

• You are not going to jail!
• You will not have to go to court!
• They are not going to garnish your next paycheck.
• They are not going to garnish your bank account.
• They are not going to come take all of your belongings!

 

Next…DON'T IGNORE THE SUMMONS!

For the sake of this post, we're talking about unsecured debts such as:

• Credit cards
• Personal loans
• Medical bills
• Personal line of credit
• Store cards, etc.
• Auto Repo

After numerous phone calls and letters, a creditor may decide to start legal action in order to collect the debt that you owe.  Not knowing how the process works, most people are intimidated and somehow find a way to pay the entire debt.  Once you understand the summons process, you will find that you can still settle that debt for less than the full balance.

The Summons Process

(The entire process usually takes 3 months or so.)

1. A CLAIM will be filed in the county court where you reside.
2. You will receive a SUMMONS. This is usually hand delivered and will state something to the effect that you have 20 or 30 days after receipt of the summons to ” ANSWER THE CLAIM.”
3. An answer is your side of the story that you would file ONLY if you feel you do not owe the amount of the claim. Even though you don't like the additional interest, late fees and now court costs, you still owe that as part of the debt. 
4. If you owe the debt, there is no reason to spend the time or money for an answer and, YOU DO NOT NEED TO GO TO COURT.
5. Contact the  attorney for the plaintiff (the creditor). If you are employed and receive normal W-2 wages, you need to try and work out a repayment plan so they do not proceed with the legal action.

If you are a Debt Relief client, you can skip step #5 and CONTACT US IMMEDIATELY by faxing or emailing the summons to your negotiator.  We (DRNW, Inc.) will contact the attorney for the plaintiff on your behalf, and we will most likely be able to negotiate a settlement based on a repayment plan to stop the legal action. Although we cannot guarantee that we will be able to negotiate a sollution, we are successful about 99% of the time!