Kimbery Credit Counselings Blog
Tuesday, March 18, 2008
Wage Garnishment
Wage Garnishment
A writ of garnishment is an order granted to a creditor by a court. It orders an employer to garnish the wages of the defendant by a certain amount each paycheck. Such a writ is only granted after the creditor has filed suit to recover a debt and received a favorable judgment. This can not be granted without a judgment, as every American is guaranteed the right to due process. So, unless your creditor has sued you and won, do not worry about your employer receiving such a writ and the creditor garnishing your wages.
A writ of garnishment is an order granted to a creditor by a court. It orders an employer to garnish the wages of the defendant by a certain amount each paycheck. Such a writ is only granted after the creditor has filed suit to recover a debt and received a favorable judgment. This can not be granted without a judgment, as every American is guaranteed the right to due process. So, unless your creditor has sued you and won, do not worry about your employer receiving such a writ and the creditor garnishing your wages.
A writ of garnishment not only states the amount to be garnished from a person's paycheck; it also provides instructions as to where the amount taken from the paycheck should be sent as well. If your employer receives a writ of garnishment, they then have no choice but to do as he has been instructed no matter how much he may not want to do so. An employer who refuses to do as the writ orders could face serious legal trouble himself since he is disobeying the order of a court of law.
How to Avoid Wage Garnishment
The best way to avoid having your wages garnished is to avoid being sued in the first place. So many consumers go into denial mode when they can't pay their debt and try to hide from and avoid their creditors by ignoring correspondence and phone calls. Just contacting your creditors, telling them why you can't repay your debt, offering a reduced monthly payment and keeping them informed of your financial progress, is a much more effective way to handle debt problems and avoid writs of garnishment and -- if you deal openly and honestly with your creditors you won't jump every time the phone rings or lay awake at night worrying. Creditors spend a fortune on collection costs and are motivated to avoid lawsuits, therefore, both you and your creditor benefit by communicating and working out a payment plan which a debt consolidation company can assist you with. Debt consolidation can help you get out of the debt your in and get you on the right track to financial freedom.
Apply today
Apply today
Thursday, February 14, 2008
Can my friends, neighbors and relatives be contacted by my Creditors?
The answer to this is Yes they can, a debt collector or creditor can call your friends, neighbors and relatives to try and locate you if you are dodging them or they can't find you, BUT if they are told to stop calling they must do so. When a debt collector calls your friend, neighbor or relative, they can only tell them who they are and with but they cannot give out your account number or that you have a delinquent debt or other details of the delinquency.
Debt collectors will even contact your neighbors across the street whom you don't even know. They will ask your neighbor to leave a message on your door asking you to call them. Although this tactic is designed to embarrass and humiliate you, The Fair Debt Collection Practices Act has not been interpreted to bar them from contacting your relatives and neighbors. Of course, these third parties might tire of receiving such calls and ask the collector to stop. In this event, the collector would be required to stop calling your neighbors and relatives which usually happens.
Of course, the best way to avoid a debt collector from contacting your relatives, friends and neighbors is to not avoid their phone calls. If you are having problems with debt one solution is to consolidate your unsecured debt by using a debt consolidation company. This is one way that your calls will stop
Thursday, January 31, 2008
Debt Problems: Can My Employer Be Contacted By A Debt Collector?
A debt collector may contact your employer to verify that you are employed by them, also they can find out whether you have medical insurance to cover a specific debt that you may have, or they may call to garnish your wages. In order to do this the debt collection agency must first sue you and obtain a judgment against you. Most states require debt collectors to make these inquiries of your employer in writing; but at times they may allow the collector to contact the employer by telephone if no response is received within a few weeks of the written inquiry.
Can I Be Contacted By a Debt Collector At Work About a Debt I Have With Them?
Yes, a collection agency can contact you at work by phone or mail unless the debt collector knows or has reason to know that your place of employment does not allow you to receive such communications. Any written communication sent to you at work must me marked "Personal and Confidential" by the debt collector and a debt collector may not reveal the reason for the call to your supervisor or any co-workers. If he does, he has violated the Fair Debt Collection Practices Act.
If you do not want to be contacted at your work place you should write the debt collector a letter asking them not to call you at work or send you notices at work because your boss forbids such activity.
Thursday, January 03, 2008
Holidays are over and the New Year is Here. Start it off right.
The holidays are over and your credit card bills have piled up even more. The new year has started so get off on the right foot and lets get those finances in order. Debt consolidation can help you pay off all those credit card bills that you maxed out or almost maxed out for the holidays.
How can our debt consolidation company help you may ask. Well we can consolidate all those unsecured bills into one monthly payment, YES ONE monthly payment. Wouldn't that be nice to just pay one bill a month.
The process is simple you pay us and we then disburse that payment to all your creditors that you have on our program. Its that easy. Make your new years resolution to become debt free. Pay off all those credit card bills and live a debt free life today.
Its simple as just filling out a quick no obligation application and then one of our credit counseling experts will contact you to explain and discuss exactly what we can do for you to assist you in getting yourself out of the financial hole you may have got yourself into.
So fill out an application today and be on the road to debt freedom.
Click Consolidate Save...simple
Thursday, December 13, 2007
Can a creditor take me to court if I fail to make payment?
Yes they can take you to court. If your debt is large enough, your creditors may refer your account to an attorney and take you to court. Often creditors will win if they file a lawsuit against you in court. The only time they would not win is if they file a law suit and do not appear at the hearing on a specific court date. Creditors realize that going to court can be frightening, so they hope that you wont show up on the court date. If you dont appear in court, they win their case by default and may have the ability to garnish your wages up to 25% or more.
If the creditor tried every angle to collect payment on your past-due account, from written notices and to phone calls to having a collection agency contact you. At this point the creditor has given up on collecting your debt and rather than take you to court, they write off your uncollected debt as bad debt. This is known as a charge off. These charge offs are charged against the creditors revenue on their income taxes. Even though your account is charged off you wtilll owe the money and a charge off will be noted on your credit report. This is a negative mark that could keep you from obtaining credit or purchases such as a car or renting an apartment. A charge off account will haunt you until you pay it in full.
Before you get to this point you may want to look into debt consolidation. Consolidate now and get on the right path to financial freedom.
Monday, November 26, 2007
How does Unsecured Debt work
Lets first say you have been approved for a credit card with a spending limit of $7000. You then activate the credit card and start using it to purchase various items like, clothes, furniture, movies etc) Once you purchase any item with that credit card, the card created unsecured debt. The card is considered unsecured because it was issued to you based on your credit and payment history and there is no property securing your purchases. If for any reasons you cannot make payments to the credit card company they can cancel your credit privileges and must resort to sending you to collections were the collection agency tries to collect from you or suing you in court and convincing the judge to grant them a judgment against you for the amount you owe them. Once a judgment has been granted, the credit card company may be able to garnish your wages, up to 25%, depending on the state law.
Unsecured debt can only be obtained by having an average to good credit rating and payment history. Unlike secured debt, unsecured debt usually comes with flexible payment amounts and terms and credit limits. If you cannot pay your unsecured debts they often may be released in bankruptcy. Over spending on credit cards is the leading cause of uncollected unsecured debt.
If you have a lot of unsecured debt and dont know what to do a debt consolidation program may be for you.
Wednesday, November 07, 2007
Cost That Are Associated With Credit Cards?
Interest - This is added to your credit card balance and is usually approximately 18.9% and may and may be compounded on a daily basis against the balance that you carry on your credit card. Interest is how credit card issuers make money. Interest is alos what makes up the finance charge.
Annual fees - Some credit card issuers charge these fees sometimes up to $75 or more, to your account each year. These fees are sometime called membership fees. The cards that usually don't charge annual fees usually charge more in interest fees.
Cash advancement fees - This is a fee that as you borrow cash against your credit card, the credit card issuer will charge you a fee for this. These fees accumulate interest just like your revolving balance does
Transaction fees - These are fees that are charged to your credit card account if you change your due date, use your credit card, ask to lower your interest rate, transfer money, etc. The creditors have there own guidelines for this. This fee is not a standard fee
Late Fees - When your payment has not been received by the credit card issuer's due date, which is stated on the credit card statement. The fee can range usually from $29 to $35. these fees are very common and can add up quickly. Sometimes they can actually increase your overall balance.
Over Limit Fees - Credit card issuers have the right to charge you a fee if you charge in excess of your credit limit. This is a fee that can range usually from $29-$35 depending on the credit issuer. If you go over your credit limit, most credit card issuers may request that you pay the amount you are over the limit in addidtion to the minimum monthly payment required.
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