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Debt and Bankruptcy

~4900 answered questions
Parent Category: Personal Finance
State of owing money to creditors. A person or organization is bankrupt when judged to be legally insolvent.
In general that is dependent on the lender and the provisions of state statutes. It may also be affected by whether the filing was a federal or state BK. In some instances the consumer has up to a year before having to vacate the premises, in others it can be sixty to ninety days.
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How a home is handled in bankruptcy depends on the type of BK filed, state or federal or a combination of the two. In chapter 7, all nonexempt assets are liquidated to pay creditors. The state or federal homestead exemption would apply in regards to the home. In a chapt. 13, debts are consolidated a…
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Wait until the bankruptcy is discharged.   Dear Lord, yes, wait until the debt is discharged! Otherwise you will get stuck with horrendous interest rates which, even if you can afford the resulting inflated monthly payments, will take forever to build any positive equity in the vehicle. And r…
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The debt and repossession will become part of the co-signor's credit record. The co-signer of any loan has the same financial obligations and liabilities as the primary borrower. They can be sued and have their wages garnished or bank account frozen. The co-signor has the same responsibilities as …
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Better is not the best word, but a chapter 7 could wipe out the car debt and your other debt. If you just to the repo - they can still come after you for the 4500 dollar difference if they sell it for only 4k (most likely it will be sold for 2k or so) which would make the debt higher. Both will hurt…
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Well, "repo man", a bankruptcy will allow folks to get their car back - even after repo. The clincher is, if the car was auctioned or not. That would be the only obstacle preventing the car from being returned, at least in terms of a Chapter 13. So, if you want your car back: file Chapter 13 and do…
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%DETAILS% Answer if it was me i would ask them to prove that the gauges were working before you bought it. and i am not sure but i think that any changes you make such as a new radio or new rims and such will stay so if you take something off i dont think u have to put it back. but i am not ent…
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You are responsible for the entire amount that you owe them - (minus) the amount they get for selling it, which won't be much with $6k in damages. They will report it on your credit, possibly try to get a judgment against you so they can garnish your wages or lien your property (these laws vary by …
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%DETAILS% Paula, you cant get the late payments off the record unless you can make a deal with the lender. First thing to do is pay it current, then get it taken care of about late payments, Pay the loan off, get B/F a job, get NEW B/F w/money,ect. Maybe if you paid the loan in full, the lender w…
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%DETAILS% Answer it could go either way. It will say "included in BK" if you included it and repo if you did not.
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%DETAILS%%FOLLOWUPS% The same thing happens as if you lived across the street from the lender. They notify you by mail what is going to happen(court,auction,ect) and if you dont respond they proceed. No biggie.   Not to my knowledge. Search in your browser for "vise + revoke".
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%DETAILS% NAKEI, I dont KNOW the answer but I dont see why they would. How would repoing your car give you any income for the IRS to tax?? Is a collector/repo person threatening you?   No, the IRS will not take your taxes, on a repossessed vehicle or other property. However, the lender doe…
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Quentyn, these questions are best asked of your B/K attorney. S/he will give you the legal advice you are PAYING for. Good Luck If your car is repoed and you've already filed for Bankruptcy (Chap 7) will you be able to ask for your car back if you still want to continue paying?
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Patrick, the B/K proces hasn't started until you get the magic "case #". be sure to tell your B/K attorney about the car loan. S/he can give you more info on the process. Good Luck
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NOT if it was repoed by a lender. You had NO standing in the contract between the lender and the B/K person. You should have watched the B/K person closer so you didnt get burnt. Next time buy from a car lot or bank.
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This would be best answered by a good bankruptcy attorney who knows Arizona law.I believe no matter what you do bankruptcy or not, they will get the car, it does not wipe your credit clean.
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With each presented law (legislation) there is "intent". The "intent" of the FDCPA was to ""to prevent the 'suffering and anguish' which occur when a debt collector attempts to collect money which the debtor, through no fault of his own, does not have." "harassing attempts to collect money which…
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%DETAILS% If the car is gone, the car is gone. The car would only be covered in BK if you still had it.   If you file Chapter 13 bankruptcy within 10 days of your car being repossessed, or in some states before it has been sold or auctioned, your creditor must return the vehicle to you.
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BK only stops the repo process until the BK is discharged. BK does not mean you can keep the car without paying for it.My opinion? Give the car back.
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I could be wrong here, but my feeling is that it is GONE. Why, it was part of the total deal just as if you had payed that much CASH down. It will be used up in the balance owed. You cant sign a contract, drive for a while and then say "I changed my mind, lets put everything back like it was." The d…
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%REPLIES% Answer Karen, it is possible to do so legally. You should ask your B/K attorney if it was legal the way it was done. S/he is in a btter position to know ALL the facts. Answer Within days of filing the BK, your finance company should have received notice that you filed for BK prote…
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IF you filed it under your B/K, you can consider it repoed and leave it at your attorneys office. That way, you can go ahead with your life and start making adjustments to the new way of doing things. No need to put it off any longer.
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Joey, that's a good question to ask your B/K attorney. S/He would be more familiar with your states B/K code.
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NOT sure on this, but it seems that until they give up the right to repo by getting a judgment for the amount owed, they could still repo. Once they get the judgment, they would not have the car for security for the loan. Ill check on it and post again in a couple of days.   They may let it…
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Call the lender first thing in the morning and make the arrangments to payoff.
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Thats a decision YOU have to make. Please consider the effects on your credit for each choice. Having to make that decision is a result of not considering it b4 you cosigned. Good Luck
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YOU are responsible for the car to the loan is payed off. The more it sells far after repo, the less you will have to pay later. get the car back, clean it up, and give it to the lender. WHY??? Folks who drive cars that don't cost them anything usually don't take care of them and the car isn't worth…
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Mary, the answer is NO. You will have to pay the balance due after the sale price has been deducted.
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%REPLIES% Answer It belongs to the lender and YOU get to store until they come pick it up. Answer yes...but dont forget to let them know you will be charging them a $60 a day storage fee, just like you would get charged.
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Notify the LENDER by cert mail that they have 10 days to remove the car or you will have it towed by a wrecker company. IF they dont p/u the car, call a wrecker co. to come get it.
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After repo, the car is sold at auction(usually) and you are expected to pay what is left owing on the loan. At this point, you can make the lender an OFFER to payoff(CASH), you can attempt to make payments on the balance or you can wait until the lender takes you to court. IF you don't go to court,…
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Your chances of getting a car loan are GREAT, at the bottom of the barrel. Buy-Here_Pay_Here lots will ALAWAYS finance you IF you have a big enough down payment. You are not in a good position to get loans now, better get creative.
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You heard 1/2 the truth. IF what you heard was completely true, EVERYONE would do the B/K deal and get FREE cars. One time at least. No candy for you.
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"How will filing for bankruptcy help before your car is repoed? As soon as the B/K is filed, an AUTOMATIC STAY is in force. lenders must stop ALL collection efforts. If your not able to file for bankruptcy before being repoed how long will it take for them to garnish your wages in Ohio. ": That will…
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You CAN go B/K anytime you pay the fees, some times are better than others.
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B/K depends on your situation and there is no standard advice. But that is likely the best thing to do. As you stated, you cant afford it.Ask your B/K attorney. S/he can advise you better. I agree with that answer. Talk to your attorney. Filing for bankruptcy is a legal process and can be compli…
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I believe there is a process called "RE-affirm" involving you and the LENDER that must be complated. You should ask your B/K attorney for case specific advice.
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Thats an excellant question to ask your B/K attorney. maybe if you REAFFIRM the debt, you can get it back. MERRY CHRISTMAS
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If it meeets the conditions of the B/K, yes. Call a local B/K attorney.
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That is a good question to ask your B/K attorney. Otherwise call a local wrecker/towing company to tow them away. They appear to be abandoned. Lots of folks take them to the B/K attorneys office and let them deal with it.   IF the lender gets a judgment for the balance owed, you PAY that ju…
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IF you have a legal interest in it, you call THE LENDER. They can tell you what you need to know.   but they wont until you pay.... you might go take YOUR car back..beat the repoman
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Thats a good question to ask your B/K attorney for state specific advice.
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Ask this of your B/K attorney. that's what you are paying for.
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This is a good question to ask your B/K attorney whom you are PAYING to look out for your best interests.
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This is a good question to ask your B/K attorney for state specific and case specific advice.   Not at all,once fou file for bankruptcy all of your debts will go away and any garnishments (except back taxes)will stop, back taxes you owe are not accepted on a bankruptcy case,the rest is ok.
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It all depends on the employer, usually after seven years a bankruptcy is clear from your record, even though someone has a bankruptcy in their record they can try to get credit to begin to improve their credit.
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In a debt replayment plan, you deposit money each month with a credit counseling service. Your deposits are used to pay your creditors according to a payment schedule developed by the counselor. As part of the repayment plan, you may have to agree not to apply for ? or use ? any additional credit wh…
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It depends on whether your debt is secured or unsecured. Unsecured debt is when your debt is not tied to any asset. Examples are credit card debts, credit lines, unsecured personal loans, etc. If your debt is unsecured, you should avail of the reliable services of a professional credit counselor.…
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Yes. You can do it on your own but companies can usually get larger settlements. You on your own are doing one...where as if they have 10 different people with a card from abc bank, totaling 100,000 in balances, they offer 40,000...a bank usually will not say no to that much. You on your own...are …
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%DETAILS% I am a Mortgage Loan Consultant and I have made it my area of expertise in working with people with bankruptcies, bad credit, and foreclosures. Firstly you do NOT have to wait 2 years to refinance after a chapter 7 discharge, those are for fannie Mae loans. You can refinance a chapter …
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No, the foreclosure will stay on your credit report for 7 years. After you will probably have to request it be removed by submitting a written request to the three major credit reporting agencies.I lost my job, and had to sell my house. My lender filed a petition of foreclosure on my house the same …
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Once it is reported to the credit reporting agencies, it is very tough to have it removed. However, you can get them to mark it "satisfied" by providing documentation of such along with a letter of explanation. Keep copies of all correspondence with the agencies.
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Most of the time a collection agency will accept 2-3 equal payments to pay off the balance. As of right now no they will not accept payment and will not work with consumer credit counciling programs. Once it has went to collections, you are not suppose to contact the original debtor. It confusses th…
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Yes, sorry.  I disagree with the first answer. If that was the case then nothing would drop off from anyone's cred it after 7 years. A collection agency could just sell the account back and forth. 7 years and it's done.  I disagree with the first answer and I definitely agree with the se…
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More to the point, the time varies. First, they have to contact you, usually by phone. Then, they have five days to send you a letter which will tell you that you owe someone some money and to send it to the address they've provided.However, also in that will be a notification that if you dispute, o…
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a collection agency will usually take up to 30% off a debt but only if it is over $500 i once owed $5,300 on a returned vehicle and they were willing to take $3,100 but you can hustle your amount owed. all they want is some of the money anyway.There is no specific set amount. You must negotiate with…
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A collection agency will say or do anything to get you to pay. They will harass you, your family, and your co-workers. It doesn't matter whether you actually owe the debt or not as far as they are concerned.Many people will pay bills when they are not really liable just to get them to stop. That is …
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Yes, many are law firms.
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It should not have any positive or negative affect at all.   The above answer is only correct, if your landlord does NOT work for a company in which you made yourself in debt to, and he/she has examined your account with the company.
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This answer is best explained by the process in which the collector assumes the debt in the first place.Let's say you owe the bank $1000.00 because they charged you fees you didn't think were valid and simply didn't pay them and shut down your checking account. You are not the only person who has do…
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The answer to your question is Yes, they can report a debt that was never origionally reported to the CRAs. This is most common with medical expenses. You may have an outstanding debt to a doctor's office for example, and though Doctors do not typically report debts to a CRA, if they sell your outst…
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Who is the other person? Unless it is your debt or your are the spouse of a debtor and have joint debt or community property debt this doesn't make sense. Although collection agency seldom know what they are doing, legal or otherwise. They do not need to notify you in writing before they call. But y…
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Any debt regardless of the original amount will continue to accrue interests and various "bookkeeping' charges. These are owed by the debtor. First you should ask for a confirmation of the debt from the collection attorney(s). You should also find out the Statute of Limitations on debts in the state…
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When a collection agency takes on a bad debt, in many cases they are "puchasing" the debt from the original creditor. When you then pay off the collection agency, your money will stay with that collection agency. This is the most common scenario, but some companies do have their own internal collect…
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I don't know what state you reside in, or how the debt is classified However, it seems possible that the SOL has expired. Write the company and ask for a confirmation of the debt. Don't do anything until you receive it, and check the SOL in state pertaining to the type of debt you have.
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The Fair Credit Reporting Act states that "...the statute of limitations...shall begin upon...the expiration of the 180-day period beginning on the date of commencement of delinquency which immediately preceeded the collection activity..." It further states that "...paragraph (1) shall apply only …
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: A bankruptcy under chapter 7 or 11, or a non-discharged or dismissed chapter 13 bankruptcy generally remains on your credit file for 10 years from the date filed. A discharged chapter 13 bankruptcy generally remains on your credit file for 7 years from the date filed.
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A foreclosure will show on your credit for seven years from the date of last activity.The federal statue of limitations is also seven years for the legal notice of foreclosure in the public records portion of your credit report.There may be other state laws which extend this statue of limitations. T…
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%DETAILS% Yes. The attorney can file. Of course, you can answer the summons and appear in court to request the creditor or its' attorney release the date of last activity on the account.Information on statute of limitations (for both collection activity, judgments and credit reporting) can be fou…
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A complete history is defined by the lender. A consumer is entitled to proof (ususally within sixty days of a written request) of the debt. This applies to someone other than the original creditor.
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Yes. This practice, called skip tracing, has a long history in debt collection and has become thorough and sophisticated with technology. There are amazing databases out there that contain information on all of us.Most often, the original contract or agreement for service that a consumer signed, as …
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Your specific question and situation requires a legal opinion. This answer is a general one only. That having been said...Judgments, being legal actions, usually accrue interest according the terms set by the judge when the judgment is granted. So paying the creditor would not stop the interest unle…
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Yes.   I tried to remove a dismissed bankruptcy from my credit report. All agencys were contacted and so was the FTC. They said they had a legal right to keep the Bankruptcy dismissal information on the bureaus files.
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After the initial contact, usually a phone call and/or letter. A consumer may not hear from a CA for some time. (Consider yourself lucky). They will sooner or later become more active in collecting the debt. Sometimes it is because they are concentrating on "easier game". If a debtor has no apparent…
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More than likely. Three years is not long enough for an SOL to expire. What probably happened was, the account was bought from the creditor, which is common practice. The BK of the original creditor, has no relevancy if the debt was sold.
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There is no difference in method for disputing various derogatory items. You dispute a foreclosure with the same technique as disputing late payments, collections or judgments. You need to aware that the information on legal entries is verified before they are listed on your credit report. Judgment…
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Answer If you have 10 different debts that total $1000.00 and borrow $1000.00 to pay them all off, you have consolidated all those small debts into one big debt. You save 9 stamps per month. Answer: Taking multiple debt or credit lines and consolidating them into one new payoff plan. Frequently…
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Yes. If a debt is defaulted on, there are several penalties that can be assesed by the collector. They can sue andmaybe received a judgment. Collecting on any judgment, however, is a different matter.   Proof of payment to the original creditor would provide an affirmative defense to a lawsui…
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%DETAILS% Answer 1. Dispute the debt again. 2. File a complaint with the Federal Trade Commission.
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If you have any assets in the US. Such as real estate, it can be seized and sold for payment of debt. If there are co-signers or co-debtors, they will be held accountable for the debt(s). And the same process of collection can be used toward them.
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There is no statute of limitations on collecting a bad debt. If you owed the debt in 1993 and never paid it, you still owe the debt.A judgment has a statute of limitations that is set by both the federal Fair Credit Reporting Act and laws of the state in which you live, or the credit (or collection …
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There is no definitive answer as to numbers. Actually it is irrelevant. Once any type of bankruptcy has been filed or discharged, your credit rating is down the drain.
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A foreclosure will cause a significant decrease in your credit score. The entry will count against you once in the "trade lines", which is the part of your credit report that contain information about your accounts. It will show again in the public record portion, once the legal action of foreclosur…
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Yes, they can and it's customary for them to. The original account should have all the history, including late payments you made and the status (collection or charge off), the DLA, and date the account was opened. It should not be showing a balance due once sold or assigned to a collection agency. I…
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Yes. It's one of their usual tactics. Asking if you can borrow the money from a friend, relative, or refinance a house, sell personal property, etc. Even though common sense would dictate, that the consumer is already unable to meet financial obligations. Therefore would not qualify for a loan, and …
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You should always pay your debts. Doing so, even on long standing debts, establishes honor and respect for the true nature of money. All the old cliches are true: You don't get something for nothing. You gotta pay what you owe.Many people believe they can "get away" with not paying a bill. Truth is,…
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If you are referring to a credit report the answer is NO. If the query is in reference to a creditor attempting to collect a debt that was included in the bankruptcy, the answer is also NO!2If the creditor is listed in the bankruptcy, No. If they continue to pursue it you can contact your attorney r…
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If you have a copy of your credit report the creditor's last known phone number and/or address should be listed. If it is not you can contact the credit bureau that it is reported with and they can try to get you that info.Otherwise, dispute it with the credit bureau. If they can't verify the inform…
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The Fair Credit Reporting Act established statute of limitations for how long derogatory information, like collection accounts, can appear on your credit report. Other statute of limitations on how long a debt can be collected on, and sued over, are established by state laws. There are also certain …
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Only the trustee handling the case can answer that. It is at the descretion of the trustee of who, how, and when to allocate the assets.
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Your first notification should be from your lender notifying you that forclosure proceedings have been filed. All states have very strict laws on how notice of foreclosure is given. This sometimes is a plus in staving off foreclosure, which is not as 'cut and dried" as some believe it to be.
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This is rather a complicated issue in the sense that states inact banking laws. In which case what would happen to a joint account depends on state laws. And also on whether it is a Federal or State BK filing.
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Your chances of prevailing in a lawsuit for failing to provide validation are slim. However, many consumers find repeated violations of numerous laws, especially patterns of behavior that demonstrates willful negligence to be grounds for a lawsuit.
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A charge off CAN be removed in exchange for payment in full, if the creditor choses to do so. Their only obligation is report the correct nature of the account, which would be a "paid charge off". However, it is a good idea and practice to negotiate for removal of the tradeline. Credit reporting is …
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If you have charged items and not paid for them, then your debt is due and payable in full. Your ability to pay and country of origin are not factors. This is a contractual matter. Once a debt becomes delinquent, the entire balance is due. The creditor is not obligated to wait for payment or take pa…
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I live in Canada and I'm not sure where you live so this is the best I can do for you:If you pay absolutely nothing on any one of your debts then yes, the creditors certainly will come after you. In Canada if you pay what you can on each bill (even if it's not the minimum amount) and you make an eff…
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I am assuming you are referring to the debtors CR. In which case the answer is No! The time limit for a debt to be removed from a CR, generally begins six months after the date of last activity on the account.
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A foreclosure, being a legal action, is a significant derogatory mark. This would show twice on your credit report. Once as a notation in the tradeline, and then again in the public records section.The tradeline entry would show all the history on the account and negative data for 7 years, plus 180 …
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