Annoyed with debt collector calls? 

Here is how to Put a Stop to Debt Collection Calls

Anyone that has had financial troubles and fallen behind in there payments to creditors understands just how frustrating and annoying those calls from debt collectors can be.

Not only are they annoying, but embarrassing as well!

Who wants to hear, "Dad, some guy calling about your credit card bill!"

Debt collectors are paid to get you to pay up.

They are (for the most part) trained professionals who will use every trick in the book to get you to pay.

Most abide by the law spelled out in the Fair Debt Collection Practices Act, but many do not.

First, it is important for you to know the basics of what a debt collector can and cannot do:

A debt collector cannot call you at all hours of the day.  They cannot call before 8:00 AM or after 9:00 PM.

They cannot call you at work if they are told by phone or in writing not to call you there!

A debt collector can call family or friends to inquire about your whereabouts, but the are prohibited from discussing your debts.

What debt collectors CAN'T do:

• use threats of harm or violence
• use profane language
• use threat of legal action if such action is not taken
• give false or misleading information about your debt
• threaten to take any property
• and there are many more... (check out the Federal Trade Commission's Information on how to deal with Debt Collectors).

OK, so you want to put a STOP TO COLLECTION CALLS:

You will need to write a short, legible letter that demands that the debt collector stop calling you immediately.

Although you want to be authoritative, you don't want to be rude or use language you may regret latter.

Remember, most likely, you owe the debt and would like to SETTLE THE DEBT, one of these days.

Located in Portland, Oregon, we have been helping clients stop receiving debt collection calls for over 10 years.

To receive a copy of the letter we use, click below:

Once you have the letter written, you should send it by CERTIFIED MAIL with a RETURN RECEIPT.

This way, you have proof that not only did you mail the letter, but they received it.

WHAT IF Debt Collectors KEEP CALLING????

If the calls don't stop, write down the date, time and try to get name of the person calling.

You will need this later to file a complaint.

You have the right to sue a debt collector in a state or federal court.  You can contact your state's attorney general's office to file a complaint. If successful, you may be awarded up to $1,000 per violation!

To file a complaint with the Federal Trade Commission, click here.

Each state has it's own site, and/or method to file a complaint.

For example, if you live in Oregon, click here to file a complaint.

That should do it, but if you would like more information about how to Stop Debt Collectors or would like to know how a debt settlement program could help you, click below:

Confused about Debt Settlement?  Here are some easy to understand, basic information about debt settlement that will help.

If you are like thousands of others of consumers that have way to much debt, take heart!

There are several options for you to become DEBT FREE once again, including what is referred to as DEBT SETTLEMENT.

We are all living through some very financially difficult times.  Yes, there are those who say that our economy is starting to rebound, but if you are like so many people, just trying to survive has lead to a mountain of debt that may be out of control.

Most people that seek our help have not run up thousands of dollars of unsecured debt such as:

• Credit Cards
• Store Cards
• Personal loans or lines of credit
• Private student loans
• Cash advance loans

No, most people are probably like you and are in this debt mess due to one or more of the following:

• Major accident or illness
• Limited fixed income of Social Security or meager Retirement Benefits
• Disablitly
• Divorce
• Death of spouse of partner

So, here you are with several credit cards that have balances that demand more of a monthly payment than you can afford!

If you qualify, a DEBT MANAGEMENT PROGRAM might help.  Debt Management is the modern name for what we use to refer as CREDIT COUNSELING.

In a Debt Management Program, each of your creditors usually (not always) agree to a reduced interest rate and possibly a waiver or reduction in over-the-limit fees or late fees.

You would have one monthly payment that is made to a Debt Management Company and they in turn distribute the required amount to each creditor.

Most Debt Management Programs take about 48 months (some less and some more).

The problem with most Debt Management Programs is that the required monthly payment is just too high for all of the debt your are carrying!

For example...

If you have a total of $25,000 charged on several credit cards, the payment needed for most Debt Management Programs would be about 2.5% (or a little more) or about $625 per month!

In my office here in Portland, Oregon, I've had many people tell me, "Are you kidding?  If I had that much, I wouldn't be behind!"

So, that leaves us with Debt Settlement.

In a Debt Settlement Program, a debt counselor will go over your financial/household budget to determine where you stand.

This can be very revealing, as most people take the "head-in-the-sane" approach with so much debt.

You may find out that after being honest with yourself, you really only have about $350 per month remaining after all the essential bills are paid!

DON'T PANIC!

With a Debt Settlement Program, your creditors are not going to be receiving monthly payments.

Instead, you are going to be making a deposit into a FDIC bank account each month.

Yes, your accounts are going to become "late and/or delinquent", but really, there is nothing you can do about it due to your financial hardship.

Once your account is late approximately 120-180 days, the account will be most likely referred to a debt collector.

Now, the original creditor will be willing (not always, but in most cases) to accept a settlement for less that is due on the balance.

Most settlements average around 50% of the balance.  Some lower and some higher, depending on circumstances.

Once the account is SETTLED, you will receive a letter stating that this account has been "paid-as-agreed" or "settled-as-agreed".

The credit reporting agencies will be notified that this account has been settled as well.

Over time, your credit score will show improvement!

If you would like to receive a FREE BOOKLET that will explain more about DEBT SETTLEMENT, click below:

Here's some very helpful tips on how to stop the dirty tricks debt collectors use.

Dealing with debt collectors can be very frustrating, especially if you do not know what a debt collector can and cannot legally do!

The Federal Trade Commission acts to enforce the Fair Debt Collection Practices Act when debt collectors violate the law.

The Fair Debt Collection Practices Act - Guide for Consumers, will help you understand your rights and help you deal with debt collectors.

One of the most annoying tactics used by debt collectors is to make numerous calls.  Many debt collectors use automated dialers that seem to work around the clock! 

Even if you are on the National Do Not Call List, a debt collector can legally call you as you have had a previous business agreement.

But, YOU CAN PUT A STOP TO DEBT COLLECTOR CALLS!

In some cases, a faxed letter will work, but to be sure, writing and sending by registered mail is much more effective!

Although a debt collector can call your family, friends and in some cases a neighbor, THEY CANNOT DISCUSS YOUR DEBT.  A debt collector can only call them to see if they can find our your phone number or where you live.

A debt collector cannot call you at work if your employer doesn't allow you to receive calls at work.  Many times you can verbally demand that the debt collector stop calling your place of employment and that will do it.  If not, write a letter.

A debt collector cannot make false statements, use obscene language, make threats of violence on the phone or in writing!

Although most debt collectors act in a semi-professional manner, there are some that will try any and all dirty tricks in order to collect their commission if they get you to pay up!

One of the most used dirty tricks that a debt collector uses is sending a "legal looking letter" that seems to indicate that you are being sued!

The Fair Debt Collection Practices Act clearly prohibits a debt collector, and even debt collectors that are attorneys, from threatening to take legal action if in fact they do not intend to.

For example, a debt collector will send a letter that says something like:

"At this time, this office has not taken any legal action, but...." or...

"If you do not contact this office within 20 days from the date it was mailed, this account will be turned over to our legal department for review."

If you received (or have received) a letter like that, then you know it is scarry!

Remember, a debt collector cannot take "legal action" until they have had an attorney, licensed in your state, prepare and submit a "claim" to your county courthouse.

Then, a SUMMONS is prepared and delivered to you.

If you do not act on the summons, then they would most likely be awarded a DEFAULT JUDGMENT.

After the judgment has been awarded, they can now take legal action such as:

• Wage Garnishment
• Bank Levy
• Place a lien on your home

The point is that just because a debt collector's letter sounds like they have taken legal action, doesn't necessarily mean that they have.

Finally, a debt collector usually has the ability to accept a lesser amount than the full amount that is due.  This is called a DEBT SETTLEMENT.

Debt collectors are paid to collect as much money from you as possible!  They may tell you that their client (the original creditor) will not accept a reduction of the balance or may say that they will only accept a very small reduction.

A consumer that has not had the experience of dealing with professional debt collectors can be intimidated and may pay much more than is necessary to settle the debt.

We have helped hundreds of clients settle debts at 50% or below for many years.

Click here for ACTUAL SETTLEMENT EXAMPLES.

Don't fall for the dirty tricks of debt collectors!

One of the most commonly asked question we get here at Debt Relief NW, Inc. is…

“When or at what point is bankruptcy my best option?”

For over 10 years now, we have been helping people avoid bankruptcy through debt settlement.

While debt settlement is not the answer to everyone’s financial problems, many times the traumatic and gut wrenching process of bankruptcy can be avoided through debt settlement.

When we interview someone to determine the best course of action based on  their specific circumstances, there are basically 3 options for most people:

Debt Management

The credit industry figured out that if they only charge you a very small monthly minimum payment coupled with a large interest rate, late fees, over-the-limit fees and an annual account fee, they (the credit card company) would make 3-4 times the original amount they let you borrow!

The goal of the credit card industry IS NOT for you to pay off your debt! 

The goal is for you to be paying small minimum payments for many, many years!

In a debt management program (sometimes still referred to as “credit counseling”), a person who is barely making the minimum payments on their credit cards and other unsecured debts (store cards, personal lines of credit, pay day loans, etc.) will enroll all of those debt with the debt management company.

They will usually be required to have a payment that is approximately 2.5% of their total indebtedness. For example, let’s say you have several cards and personal accounts that total $25,000.

In a debt management program, your single monthly payment would be approximately $600-$625 per month for approximately 4 years or so.

This is a great way to get your credit accounts under control and have a day in the future when you can finally be DEBT FREE!

But, what if you cannot afford the minimum payment required by a debt management company?

Debt Settlement Program

A prospect for a Debt Settlement Program usually fits into one or more of the following scenarios:

• They have too much debt and cannot keep up with the minimum payments.
• Some or all of their accounts have gone (or are about to go) to a collection agency.
• They cannot afford the payment required of a Debt Management Program.
• They want to avoid bankruptcy if at all possible.

In a Debt Settlement Program, your current creditors WILL NOT be receiving normal monthly payments.

Instead, your accounts that have become delinquent will be/or have been charged off and sent to a collection agency for collection.

After a thorough financial consultation, the debt settlement counselor will evaluate what you can reasonably afford to set aside monthly into a Client Reserve Account.  As this account grows, the debt settlement company will be contacting you creditors and/or collection agencies to negotiate settlements.

Depending on several factors, settlements may be negotiated with a one-time payment from the funds accumulated in your reserve account or a term-settlement may be negotiated whereby the collector agrees to a reduced settlement paid out over a specific period of time.

Once the settlement agreement has been completed, the collection agency or creditor will contact each of the 3 major credit reporting agencies (Experian, Equifax and Transunion) to report that the account has been paid-as-agreed.

Over time, as your accounts are settled, you credit score begins to improve.

But what if you cannot afford much more that a small monthly deposit to the reserve account or nothing at all?

This is where Bankruptcy becomes a “tool” to protect you from creditors who choose to:

•     Seek Wage Garnishment
•      Levy a Bank Account
•      Place a Lien on your property

If you are considering bankruptcy, you should consult one or more attorneys who specialize in bankruptcy.

Bankruptcy should not be viewed as a “get out of jail Free Card”, but rather the last and only option when faced with insurmountable debt.

If you have an old credit account that has been placed with a collection agency, you may be able to settle that debt for less than the balance.

How to settle debt with collection agencies

#1 If you are not sure you owe the debt, you have the right to request a DEBT VALIDATION from the debt collector.

According to the Fair Debt Collection Practices Act (FDCPA), every consumer has the right to make the company trying to collect a debt PROVE that you actually owe it.

You must write a letter and it should be something like this:

To whom it may concern:

Although I received a letter dated (date on the letter) from you demanding payment of the above debt, I do not think that I owe it and request that you VALIDATE THE DEBT according to the FDCPA, 15 USC 169g Sec. 809 (b).

Please provide the following:

• Produce copies or the original contract that you say I signed, showing the date and my signature.
  

• Provide a calculation that explains how you have arrived at the balance you say I owe.

• Provide proof that your agency is registered in my state or why you have an exclusion.
  

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

Send the letter by CERTIFIED MAIL to prove that the collection company received it.

#2 If the debt collector does provide proof that you owe the debt, you should negotiate a settlement for less than the amount owed.

This can be tricky as these collectors are professionally trained to do whatever it takes to get you to pay as much as possible!

#3 If you get a settlement offer, make sure you GET IT IN WRITING!

Regardless of what the debt collector says, they can and MUST provide you with a letter, fax or email of the terms you agreed. DO NOT, I REPEAT, DO NOT authorize any type of payment without the settlement agreement in writing.

Once the payment has cleared, you should get a letter from the collection agency stating that the account has been "settled as agreed".

Your proof of payment (canceled check, bank statement showing a check-by-phone transaction for the amount agreed) along with the SETTLEMENT AGREEMENT, will be enough to prove that you have paid this debt as agreed if it ever surfaces in the future.

If this seems overwhelming or if you have questions, we can help.  Simply give us a call or click on the link below for a FREE debt elimination summary.

When it comes to the subject of "Credit Repair", you have choices. Should you Do it Yourself or Pay someone for credit repair services?

There is no clear answer to this question because it depends on several factors:

There is a misnomer that a professional credit repair company can "magically" make bad credit disappear from your credit report!

The point of credit repair is to make sure that any ERRORS on your CREDIT REPORT are removed.

What kind of errors can be removed from your Credit Report?

• debts that you have paid off that still show an outstanding balance due
• debts or a bankruptcies that have been on your credit report from longer than the statute of limitations in your state allows
• judgments that have been satisfied (paid-in-full or settled)
• Incorrect personal information...Social Security Number, Date-of-Birth, etc.

Credit Repaire is simple, yet can be VERY TIME CONSUMING!

• Order your credit reports (www.annualcreditreport.com)
• Review all three credit reports very carefully
• Dispute any errors you find
• Document ALL communication & keep copies of EVERYTHING
• Follow-UP, Follow-Up, Follow-Up

Although these steps seem easy, you will most likely have to dispute items several times before getting to a resolution with the credit bureau.  Some items will be easy to clean up, such as incorrect address or employer information.  However, removing trade lines from your credit report can be more tricky and can take several months and many hours of your time to complete.

Why pay for Credit Repair services?

Although the Credit Repair process is relatively simple, it can be extremely time consuming.  A reputable Credit Repair agency will handle the hours of paperwork and follow-up for you for a relatively small fee. Plus, they can often clean up your credit report much faster than you can on your own. Good Credit Repair agencies have been doing this work for years and know the tricks and techniques to get items removed quickly.

It's important to do your research and only work with a company that you trust and that has a good BBB rating.  There are a lot of scammers out there, but there are a lot of good companies too. 

Look for a Credit Repair company that charges fees based on performance.  Most good Credit Repair companies will bill you a set amount once an item has been removed from your credit report, however, there are others that will charge a monthly fee until the disputed items have been removed. 

It's up to you to decide if it makes sense to pay for services or do it yourself.  Only you can make that decision based on your available time and budget.  If you have outstanding debts that you actually owe, we can help you eliminate those debts for much less than what you currently owe. 

If you'd like more information, give us a call at 877-492-4109 or simply click on the link below for a free debt elimination evaluation.

Have you ever wondered about what is the difference between a chapter 7 and a chapter 13 bankruptcy?  This post will help clear up the confusion!

DO NOT take the information to follow as legal advice!  Before making any decisions, you should consult an experienced, licensed bankruptcy attorney. 

Chapter 7 bankruptcy is a liquidation form of bankruptcy. 

This means all of your non-exempt assets get sold and the proceeds are shared amongst your unsecured creditors. 

However, many of your assets will be classified as "EXEMPT", and will not have to be sold if they fall under the following guidelines: (again, these change all the time, so make sure you consult a licensed bankruptcy attorney!)

Few examples of exempt assets:

How do you value your property?

The rule of thumb is to use garage sale prices, although current events can cause certain items’ value to sky rocket and the Trustee will sell it for what he or she can receive and not what you think it is worth.

It is important to know which debts get discharged in a Chapter 7 bankruptcy and which will remain after filing. 

After the bankruptcy completes (which is usually 4 months if there are no non-exempt assets or a minimum of 10 months if there are non-exempt assets) you receive a discharge.  This means you are no longer responsible for paying those dischargerable debts.

In most cases, a Chapter 7 bankruptcy is more attractive than Chapter 13 because it is much shorter time commitment and you don’t have to give up all future disposable income for 3-5 years. 

But what if you do not qualify for a Chapter 7?

Then you would most likely file for a Chapter 13 bankruptcy.

A Chapter 13 bankruptcy involves paying your creditors back over a period of 3-5 years.  You take your monthly expenses away from your monthly income, what is left over is called disposable income. 

The entirety of that disposable income, a minimum of $100 will get paid to your unsecured creditors. 

At the conclusion of your 3-5 year period, what they have received is all that they get and the rest of the unsecured debt is discharged.  If you pay your creditors back in full prior to the 3 to 5 years finishing, than your case closes since there is no longer any debt to administer.

You only want to file a Chapter 13 bankruptcy if either you can’t use Chapter 7 or a Chapter 13 would give you an advantage.  A Chapter 13 must be used if you make too much money under the means test to qualify for a Chapter 7 bankruptcy or you have filed a Chapter 7 bankruptcy within the last 8 years. 

You gain an advantage from filing a Chapter 13 bankruptcy if you need to catch up on back mortgage payments or you have certain tax or domestic support debts.  There are other reasons to file a chapter 13 and I would strongly recommend consulting a licensed bankruptcy attorney if you are contemplating filing.

One last important difference between these two chapters of bankruptcy is what happens if you want to quit the process. 

A Chapter 13 bankruptcy is a form of voluntary repayment, which you can stop at any point.  There will be no penalty, just all the debts will once again come due and you will have lost the protection of the automatic stay. 

A Chapter 7 bankruptcy is a liquidation form of bankruptcy and once initiated continues until the Trustee is finished.  This is true even if you voluntarily give up your right to a discharge, fail to make a payment, or fail to take the required classes.  You have the right to give up your discharge, but that does not prohibit the Trustee from continuing to administer your estate and sell your non-exempt belongings. 

Bankruptcy should only be filed if you are aware of the risks and benefits.   Most bankruptcy attorneys offer free one hour initial consultations, I’d urge you to call one in your area before deciding which chapter to file.

Are there alternatives to bankruptcy?

Yes.  You may qualify for:

Debt Management or Debt Settlement

Call today for a FREE CONSULTATION.

Written by Noah Bishop of Gresham Family & Bankruptcy Law

Debt collectors practice abusive tactics everyday, but what JPMorgan/Chase did in California got them in serious trouble with the State Attorney General!

CNBC published an article by Jessica Silver-Greenberg in the New York Times about how JPMorgan/Chase had been practicing abusive debt collection practices on thousands of creditors between 2008 and 2011.

JPMorgan/Chase would file thousands of lawsuits each month (469 on one day!) in an effort to clollect debt. They were accused of taking shortcuts such as relying on court documents that had not been reviewed for accuracy.

Anyone who receives a collection letter or summons has the right to have that debt "validated".

In other words, JPMorgan/Chase was not doing this and therefore were charged with "unlawful practices", according to the article. Debt Collectors must obey the law or more specifically the Fair Debt Collection Practices Act (FDCPA) or be subject to criminal charges.

Kamala D. Harris, the Attorney General of California, is quoted in the article that JPMorgan/Chase:

• "took shortcuts like relying on court documents that were not reviewed for accuracy"
• "To maintain this breakneck pace, JPMorgan relied on unlawful practices."
• "...assembled a debt collection mill that abuses the California judicial process"
• "At nearly every stage of the collection process, the bank cut corners in the name of speed, cost savings and their own convenience."

Illegal debt collection practices is nothing new!

We've been helping people repay and/or settle debts for many years and have seen abusive debt collection practices before, but never on this large of scale as the article states! The FDCPA can protect you from such abuse, but you need to KNOW YOUR RIGHTS!

Of all the charges outlined in the article, the worst was what is called "sewer service"!

What is Sewer Service?

In traditional and legal debt collection, the process should go as follows:

• The collector files a CLAIM in your county's court house.

• You are supposed to get a SUMMONS delivered in person.

• You have 20-30 days (depending on your state law) to dispute the debt.

• Since most people either owe the debt or ignore the summons, the creditor/plaintiff is awarded a DEFAULT JUDGMENT.

With the judgment (awarded by default), the creditor now can seek payment by Wage Garnishment or Bank Levy.

What JPMorgan/Chase was accused of doing was claiming to have served the debtor with a summons when in fact they had not!  This is SEWER SERVICE!

I'm glad California has taken (or will be taking) JPMorgan/Chase to court! More state attorneys general should do the same!

In the meantime, if you feel that you have been the victim of abusive or illegal debt collection practices, contact your state's attorney general and file a complaint.

If you would like to read the entire article by Ms. Silver-Greenberg, CLICK HERE.

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!

Can a Debt Collector Garnish Wages or Other Income?

It depends... Debt collectors may or may not be able to garnish your wages or other income.

It depends on several factors:

• Type of income
• What state you live in
• What the debt is for

In most cases, debt collectors cannot garnish the following types of income:

• social security
• disability
• retirement
• child support, and
• alimony.

There are exceptions to this rule, so you must check your state's particular laws.

But, exceptions are usually not granted for federal (or state) taxes or student loans in delinquent or past due status.

As of May 1, 2011 (the same day as the death of Osama Bin Ladin), banks are required to review accounts for automatically deposited federal benefits (Social Security and Supplement Security Income, veterans benefits, railroad retirement, civil service retirement, and federal employee retirement) before they honor or allow a debt collector to withdraw money for a garnishment order.

If your bank receives a garnishment order, it is required to review your account for the previous two months and must protect any federal benefit AUTOMATICALLY deposited during that time frame or the current balance of the account, whichever is less.

For example, if you receive $1500 each month from Social Security benefits and an additional $1,000 a month in federal disability benefits, the bank would protect $5,000 or your current balance if it is less from garnishment.

Any amount above $5,000 in the account would be subject to garnishment.

Again, we are talking ONLY ABOUT RETIREMENT INCOME THAT IS AUTOMATICALLY DEPOSITED for you!  If you receive a check and deposit it yourself, this law doesn't apply.

And remember, this law is not going to protect you from money owed to the Federal or State Government or for back child support, so be aware.

If you are retired and have debt that has gone to collections, I recommend that you go to your bank and sit down with the manager or someone who really knows, and make sure you account is flagged as RETIREMENT INCOME ONLY.

If they will not honor your request, I'd look around for a bank that does.

At this time, Pennsylvania and Texas are the only two states that I am aware of that restrict wage garnishment.

In TEXAS, your wages are exempt or protected from garnishment EXCEPT FOR:

• Child Support
• Alimony
• Taxes
• Federal Student Loans

In PENNSYLVANIA, wages are exempt or protected from garnishment EXCEPT FOR:

• child or spousal support,
• obligations relating to a final divorce distribution
• back rent on a residential lease
• certain types of taxes
• student loans, and
• court ordered restitution in criminal matters

In other states, your wages can be garnished.  Usually, the amount is 25% of your net income, (after tax deductions).

Also, most states, like OREGON, have an amount of earned income, not retirement income that will be exempt from garnishment.  In other words, if you have a small income, it may be exempt from garnishment.

Bottom line....

If you have unsecured credit:

• Credit cards
• Store cards
• Personal loans
• Medical bills
• Non-Federal student loans

 OK, so some or all of your income may be exempt from wage garnishment, but you still need to deal with your debts!

What can you do about getting rid of that debt?

You have several options:

• Debt Consolidation
• Debt Management
• Debt Settlement
• Bankruptcy

But which Debt Relief option is best?

That depends on several circumstances.  Click here for a FREE CONSULTAION.

photo by: TJ Scenes