If you live in Texas, you have some unique laws that make debt settlement a great way to eliminate old credit card or other unsecured debts.

Due to various circumstances such as:

• Loss of employment
• Illness
• Death of Spouse
• Divorce
• or many other of life's challenges

...you may find yourself with too much debt and without the ability to make regular payments. When that happens, it doesn't take long before the DEBT COLLECTORS begin to start calling!

If this has happened (or is happening) to your, click here to learn how to STOP THE CALLS.

The debt collector may try to get you into a HARDSHIP PROGRAM!  BUT BEWARE!

If it has been several months since you made your last payment, the debt collector may file a complaint and you would receive a summons.

DON'T IGNORE THE SUMMONS!

If you owe the debt and cannot negotiate a settlement, the CREDITOR OR PLAINTIFF will be awarded a DEFAULT JUDGMENT.

In most states, the CREDIOR can get a WRIT OF GARNISHMENT that would result in an average of 25% of your net income being withheld from each paycheck until 100% of the debt is paid!

BUT NOT IN TEXAS!

Texas does not allow garnishment of wages in order to repay unsecured debt! This gives Texas residents a tremendous advantage and leverage in negotiating a settlement of their debts!

After being awarded a judgment, many creditors place a LIEN ON YOUR HOME. 

This means that before you sell or transfer the property, the debt (PLUS INTEREST, FEES, ETC,) would have to be paid to release the title!

BUT NOT IN TEXAS!

Texas has the best HOMESTEAD LAWS in the United States.

Basically, your principle residence cannot have a creditor place a lien after a judgment for unsecured debt! This protects Texas Residents great protection and comfort!

With these two laws protecting your wages and homestead, residents of Texas can and should be able to negotiate very favorable settlements!

We have been helping Texas Residents for over 10 years and we can help you too!

Experienced Debt Settlement companies understand the advantages of debt settlement in Texas. Therefore, debt collectors are more willing to settle debts for less!

Actual Debt Settlement Examples: (Click on Link below to view)

• Wells Fargo
• Bank of America
• Chase

photo by: Calsidyrose

Have you had a debt settled for less than you owe?  If so, chances are pretty good that you also received a 1099-C for the amount of the "forgiven" debt amount.  WHAT?  How can that be possible? 

Unfortunately, if you settle your debts, the forgiven amount is considered taxable income.  However, you don't necessarily have to included it as taxable income.  Read on to hear Bob's story and how he was able to avoid paying taxes on his forgiven debt.

How to avoid paying taxes if you receive a 1099-C for FORGIVEN DEBT

Bob lost his job and started using several credit cards to make ends meet. He was paying for groceries, gas, and even had to take a cash advance once in a while to survive.Bob had every intention of paying off the cards, but due to our country's severe economic downturn, he could not find a job.

After about a year or so, he had added another $10,000 to his cards, making the total of all his credit cards to be about $22,000!The minimum payments on all of them totaled a little over $500 per month and he just couldn't meet his obligation.  After 3-4 months of non payment, most of his cards went into collections, debt collectors started

Bob had heard about DEBT SETTLEMENT and DEBT MANAGEMENT, but didn't know if he qualified.

After a FREE COUNSULING SESSION, it was clear that he could not qualify for the Debt Management Program and therefore chose to enroll in the Debt Settlement Program.

Let's see what happened during the Debt Settlement Program:

After searching the net and talking with several companies, Bob had chosen a reputable Debt Settlement Company to help him settle his debts.

His total debt was settled at an average of 40% of what he owed, so his creditors FORGAVE about $13,000 of debt.

Because the amount of the forgiven debt was over $600, Bob's creditor reported the settlement to the IRS and mailed him a 1099-C.  The 1099-C basically said that $13,000 had been forgiven and he needed to report that amount as additional income for the taxt year the forgiveness was granted.

But his Debt Settlement Company helped him understand that he was not going to be liable for the additional income and resulting tax on that income.

They provided him with a information about how to file IRS Form 982 and the other documents he needed to provide with his taxes.

IRS Form 4681, says that if, at the time of forgiveness, you were INSOLVENT (meaning your liabilities were greater than your assets), then the forgiven amount DID NOT HAVE TO BE INCLUDED as additional income!

Since Bob had completed an Asset vs. Liabilities worksheet, provided by his Debt Settlement Company, he was able to completely avoid any additional tax on the settlement or "forgiven" debt shown on the 1099-C!

If you have received a 1099-C and need help, we can help, please let us know!

The amount of debt the average American has been estimated to be close to $8,000! If you get behind on paying your debts, get ready to hear from DEBT COLLECTORS!

You must know your rights!

YOU DON'T HAVE TO PUT UP WITH DEBT COLLECTION CALLS!

When you get a call or letter from a debt collector, DON'T ADMIT TO THE DEBT, but instead, get the address of the collection agency.

Write a letter demanding that they know longer call you at home or at work.

Mail by certified mail so that you have proof that they received it.

If they continue to call, report them to your state's attorney general.

IF YOUR DEBT IS A FEW YEARS OLD, MAKE THE COLLECTOR VERIFY IT!

The statute of limitations on unsecured credit card debt varies from state to state.

In Oregon, it is 6 years. 

This means that if the debt has had no payments and/or activity for over 6 years, it must be removed from the credit report and in deemed "un-collectable".

When you request a verification of the debt, the collector must:

• Stop all collection activities
• Provide proof of original documentation that you indeed owe the debt

Many times a collector has purchased debts and may or may not be able to verify.  If this is the case, you may not have to pay.

IF YOU ARE RETIRED AND ONLY RECEIVE INCOME FROM RETIREMENT SOURCES, YOU ARE EXEMPT FROM GARNISHMENT OR LEVY.

Debt collectors love to scare seniors and/or retired persons!

If your income is from a State or Federal Pension System and the benefits are automatically deposited in your bank account, the bank must perform a 2 months "look back" if they receive a garnishment request from a collector.

This law went into effect on May 1, 2011.

Unfortunately, this only applies to DIRECT DEPOSITS and not normal deposits.

If you are retired, and only receive retirement income, sit down with your banking contact and see if they will "FLAG" your account in case of a garnishment request.

If they will not, find another bank!

IF YOU ARE FACING A LOT OF UNSECURED DEBT, A COLLECTOR MAY ACCEPT A SETTLEMENT FOR LESS THAN THE BALANCE.

This is called "DEBT SETTLEMENT", and it is done everyday to help people clear up past debts.

Debt Settlement can be done by anyone, but it takes time, patience and experience to get the best settlements.

If you need help in this area, let us know.

You do not have to put up with abusive debt collection practices.

Debt collectors must abide by the laws spelled out in the Fair Debt Collection Practices Act (FDCPA) or could face severe fines!

The  Federal Trade Commission (FTC)  is the nation's consumer protection agency and has published guidelines for consumers that explains what a debt collector can and cannot do.

Here are just some of the most abusive debt collection practices and violations:

Calling you many, many times a day at all hours of the day!

A debt collector may not call you before 8am (local time) or after 9pm (local time), unless you have agreed to it.

The best thing you can do to put a STOP TO DEBT COLLECTORS CALLS, is to send them a letter that demands that they stop calling you both at home and (if employed), your employer!

It is a good idea to send the letter via certified mail so you have proof that they received it.

You should also keep a copy of the letter.

The debt collector may only contact you once more to tell you they received the demand letter.

If they continue to call, you should report them to your state attorney general's office by going on line to file a complaint.

You should keep a log of all calls, time of day, etc.

A debt collector cannot discuss your debt with neighbors, family or friends without your consent!

A debt collector can only contact others to find your address, phone number or where you work.

Harassment!

• Debt collectors are prohibited from:
• using obscene or profane language
• making many, many annoying calls (many times via computer dialer)
• using threats of violence
• making false statements, such as threatening a legal action if they do not follow through
• falsely claim to be a government agency
• threaten to seize, garnish or sell your property to pay the debt (unless they have been awarded a legal right through the courts)

 What can you do if a debt collector has been awarded a judgment against you?

You may want to get advice from an attorney (yes, expensive), but it is VERY IMPORTANT that you don't ignore a summons, notice of levy or garnishment.

Once a debt collector has been awarded a judgment, they can apply for a writ of garnishment and also for a levy of your bank accounts.

The best thing you can do is to contact the debt collector immediately after receiving a letter and do you best to settle the debt.

Debt Relief NW can help you:

• Stop collection calls
• Negotiate debts for 50% or less in many situation
• avoid garnishments and bank levies
• avoid bankruptcy

FOR A FREE CONSULTATION WITH NO OBLIGATION, CLICK HERE TODAY!

Your getting calls from a debt collector, but you do not believe you owe the debt. 

Learn how to stop debt collectors with debt validation.

First, you need to understand a little about debt collection and the process a creditor may use (and many time abuses) to collect that debt.

You have a credit card with a balance of $5000, but you have been unable to pay the minimum payments because you lost your job or have some other financial hardship.

• The creditor  sends your account to their internal collections or recovery department.
• You start getting calls and letters trying to get you to pay up!
• If they are unsuccessful, they will most likely “assign” or “sell” the debt to a collection agency.
• Now the collection agency starts to call and call and call (HOW TO STOP COLLECTION CALLS) and send letters demanding immediate payment.

Since you know that you owe the debt, this is not the time to use DEBT VALIDATION in order to stop the collection efforts.

You only have a few options at this point:

• Agree to a repayment program (HARDSHIP PLAN)
• Enroll in a Debt Management Program (used to be referred to as Credit Counseling)
• Enroll in a Debt Settlement Program
• Seek Bankruptcy Protection

But, for the purpose of this article, let’s say that you believe one or more of the following:

• Do not believe that you owe the debt the debt collector claims.
• Believe the statue of limitations has run out on this debt
• Not sure if you owe the debt and want to make sure it is valid
• Think you paid this debt off a long time ago and don’t owe anything now
• Ran a credit report and saw this debt listed and you think it should not be as you paid it in a settlement.

Here’s what you can do to Validate your Debt:

The Fair Debt Collection Practices Act (FDCPA) gives us the legal authority to request a validation of a debt claimed by a collection agency.

Send a certified letter (so you have proof of receipt) demanding validation of the debt to the collection agency within in 30 days of receiving the letter from the collector.

Sample Letter:

Reference your name, address, etc. and the name of the collection agency, address, etc. at the top.

Reference your account and account number.  If the collection agency has assigned as special account number, reference that as well.

To whom it may concern:

I received a letter dated (date on the letter) from you demanding payment of the above debt.

I do not believe I owe this debt and pursuant to the Fair Debt Collection Practice Act, 15 USC 169g Sec. 809 (b), I am requesting a validation of this debt.

Please provide the following:

• Produce copies of any papers that show that I agreed to pay what you say I owe as well as a copy of my signature and date on those documents.

•  Provide a verification or copy of any judgment if this applies to this alleged debt.

•  Provide proof that your agency is registered in my state.

If you can provide the above documentation, I will need at least 30 days to determine if this information is correct and again, according to the FDCPA, all collection activity must cease.

Looking forward to clearing this matter,

Your signature

Print your name

Date

There are several other demands that can be made, but at this time, your goal is to verify the debt.  If you do not get a receipt of delivery of your registered letter, call the collection agency to verify the address and send again.

• It will most likely take the collection agency 30 days or so to get back to you.

• If they do not get back to you, then this most likely will be the end of it.

• You should wait a couple of months and then check your credit report to see if this debt is listed (or still listed).

If the calls and letters have stopped and it is still listed, you can request the credit bureaus to remove the listing by providing copies of your letters, no response, etc.

I’ll write more about the debt validation process and more options in later blogs, but in the meantime, if you need help, let us know.  (1-877-492-4109)

When your debts are out of control and you miss or get behind in payments, the creditor will do whatever they can to collect, including calling and calling and calling....

The good news is that you DON'T HAVE TO PUT UP WITH IT!

3 Tips on How to Stop Collection Calls

First Tip:

According to the Fair Debt Collection Practices Act (FDCPA), a consumer can demand that a creditor or collector STOP CALLING.

Next time the creditor or collector calls, get the address of the company.

Tell them you plan to send them "something" and need the address.

Second Tip:

Write a brief letter that states something like this:

"I realize that I am behind in my payments and have every intention of repaying this debt as soon as my circumstances improve."

"In the meantime, I am making an official request that you cease calling the following numbers: (list home, cell, etc.)"

"If these calls do not stop, I will file a formal complaint about your company with my State's Attorney Genreral's office."

Sign and date.

Third Tip:

Spend a little extra money to send the letter by CERITIFIED MAIL.

You will get a receipt and the recipient will have to sign for the letter, proving they did receive it.

If you feel overwhelmed with your debt, we can help! Simply call 877-492-4109 to speak to one of our debt solutions specialists right now or click on the link below.

In most states, a wage garnishment for non-payment of debt is approximately 25% of your net, after-tax income.

For most people, this would be FINANCIALLY DEVESTATING!

First, you need to understand how wage garnishment works:

• Your debts become delinquent because of non-payment.
• The calls and letters start.
• If repayment agreement cannot be arranged, the account is charged-off and placed with a collection agency and/or lawfirm/collection agency.
• More calls and letters.
• Again, if a repayment agreement cannot be arranged, the creditor may instruct the collector/law firm to FILE A COMPLAINT.
• Once the file is processed, you will receive a SUMMONS.  It states that you have 20-30 days to ANSWER or give cause why you do not owe the debt.
• Again, if a repayment agreement cannot be arranged, then a court date is set, the creditor or PLAINTIFF wins a DEFAULT JUDGMENT.
• Once the JUDGEMENT has been awarded to the PLAINTIFF, they can apply for a WRIT OF GARNISHMENT to your employer.
• Your employer has no choice but to comply with the WRIT OF GARNISHMENT or will face a fine from the court!
• You get your paycheck with an additional 25% reduction!

What can you do to stop a Wage Garnishment?

At this point, you need to contact the attorey for the plaintiff and try to negotiate a repayment agreement called a STIPULATED AGREEMENT.

A Stipulated Agreement is an agreement between you and the attorney/plaintiff/creditor that you will pay so much per month until the balance of the debt is repaid.

You may need to give the attorney financial proof that you are unable to pay, but most likely, they will agree to a plan whereby the monthly payment is something your budget can handle.

If you cannot come to an agreement, then you may be forced to contact a BANKRUPTCY ATTORNEY and seek BANKRUPTCY PROTECTION.

We have helped hundreds of clients, just like you, not only avoid wage garnishment, but also settle debts at a substantial reduction!

1-877-492-4109

If a debt collector contacts you and claims you owe a debt, how can you make them prove that you still owe it?

Under the Fair Debt Collection Practices Act (FDCPA), you have the legal right to make the debt collector prove the validity of the debt.

Every collector must send you a written “Validation Notice” telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don’t think you owe the money.

When you receive a letter from a debt collector, it basically states that you have 30 days to dispute the validity of the debt and that if you do not, then the debt will deemed to be valid. If you don't think you owe the debt, then you must send a WRITTEN REQUEST to the collector within 30 days of receiving the validation request.

Your Debt Validation letter should say something like:

Dear XYZ Collections:

I am sending this letter in response to a letter (or phone call) I received on (date).

Your reference number is 123456789.

I am requesting that you provide validation of this debt according to the Fair Debt Collection Practices Act.

If you do not provide validation, I will file a complaint with the Federal Trade Commission and your state's Attorney General for Civil and/or Criminal claims.

Sincerely,

It is best that you send the request via certified mail with a return receipt request.  This way, you can prove that they received it.As soon as the collector receives the written request, they cannot contact you unless it is to provide you with proof that the debt is valid.

After receiving your request, the collection agency must send you proof that it owns or has been assigned the debt by the original creditor. It is not considered validation for the collection agency to state that you owe the debt. They must provide documentation from original creditor. 

If the debt collector does not respond to your request within 30 days, they may not continue to attempt to collect the debt from you nor can they list the debt on your credit report. However, if the debt collector does list the debt on your credit report, you can dispute the debt with the credit bureau.

Key Debt Validation Takeaways:

1. You have the legal right to make any debt collector prove the validity of the debt they are trying to collect.
2. Once you receive a collections letter, send them a Debt Validation Letter via Certified Mail.  The creditor mus receive this letter within 30 days.
3. If a creditor falsely reports a debt to your credit report, you can dispute the debt with the credit bureau.

Tired of Collection Calls? Click the link below for a Free Report:

phot by: Eleaf

If you receive a wage garnishment, knowing your rights may save you hundreds of dollars!

It is a common misconception that a creditor can automatically garnish your wages if you fail to pay your debts!

If a debt collector is unsuccessful in collecting for unpaid debts, they may decide to file a claim in your local county court.

You would receive a SUMMONS, which is usually hand delivered to you.

The summons basically states that you have 20-30 days (varies by state) to "answer" the claim.  An answer is what you would do if you disputed the claim.  To file an answer will usually cost you a court fee and is a waste of time and money if you owe the debt.

If you do not contact the collector and arrange a repayment plan, usually called a STIPULATED AGREEMENT, then a court date is set and the creditor or PLAINTIFF will be awarded a DEFAULT JUDGEMENT.

In other words, the creditor wins the judgment by default because there was no reason for you to contest the claim since you owe the debt.

So now that the creditor has the judgment, what can the creditor do?

If you have a job and earn normal, W-2 income, your creditor can apply for a WRIT OF GARNISHMENT. This will be sent to your employer and the employer has no choice but to comply with the WRIT.

DON'T PANIC! There are several sources of income that are exempt from garnishment:

If you receive any of the following types of income, they 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

For a complete listing see Oregon Garnishment Forms.

Let's say you earn $15 per hour and work 40 hours per week.

     $15 x 80 hours =                                     $1200

2.  Total deductions withheld by law                $ 360

3.  Net Disposable Wage (2-1)                        $ 840

4.  Normal exemption (OR 75% of line 3)          $ 630

5.  Minimum exemption (OR $435 for 2 wks)      $ 435

6.  Greater of line 4 or 5 = exempt wages          $ 630

7.  Nonexempt wages (6-3)                             $ 210

In this example, $210 would be withheld from your BI-Weekly check to satisfy the garnishment until the entire amount of the debt is repaid!

If you are SELF EMPLOYED, receiving 1099 or commission income, is is unlikely that an attempt of wage garnishment by a collector will be successful.

Click below for FREE INFORMATION

How to Stop Wage Garnishment

How to Eliminate Your Debt for Less

How to Stop Collection Calls

If you have questions or would like more information, please give us a call!

877-492-4109

The phone rings again and the debt collector tells you that unless you send money now...

The debt collection industry is a collection of professionals at one end and low-class, say anything-to-make-a buck low lifes at the other.

We get calls everyday from clients who are almost in tears after receiving a bad call from a collector.

Usually, the collector will tell you how much you owe and how its your responsibility to pay this bill, regardless of how hard things are.

Problem is, the collector usually goes beyond what the Fair Debt Collection Practice Act (FDCPA) states what they can and cannot do.

DID YOU KNOW???

Harassment is the single most prohibitive action. 

They cannot harass or use abusive language to you or any third party that may be helping you.

That a debt collector may not:

• Use threats of violence
• Publish a list of names of people who refuse to pay their debts
• Use obscene or profane language
• Make false statements, such as:
• You will be arrested if you don’t pay
• That they will seize, garnish, attach or sell your property without legal authority
• Threaten to take legal action if they don’t intend to do so 
• A creditor is not permitted to call you before 8am or after 9am
• Cannot contact you at work after you have requested them not to by mail or fax

If you feel the collector has violated your rights, you may contact your state Attorney General’s office (www.naag.org) and the Federal Trade Commission (www.ftc.gov).

To learn more about debt collection practices and your rights under the law, visit www.ftc.gov/credit and MyMoney.gov .

You have several alternatives to take care of your debt problem. Don't be intimidated by a collector. 

If you need help, you should contact a professional debt management company.