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Can debt collectors take settlement money?

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2014-07-02 19:10:55
2014-07-02 19:10:55

Debt collectors can indeed take settlement money from someone if they owe debt. These collectors may take from what they need to.

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Debt collectors are under no obligation to take a lesser amount than what you originally owe. Most will agree to and acceptable payment plan or offer a settlement if the original creditor allows it.


Through debt settlement programme people can save their lots of money. Getting the debt details of customers debt settlement agents starts their work. fast they contact the creditors and make them accept a 40 to 50 percent settlement rate. The companies finally accept that condition because otherwise they could get nothing. Some times people spend much money in credit but atlast they don't paid off the full. But their creditors will take all money from them, in that case debt settlement is very essential for the debtors. Debt settlement companies can manage this problem and clear the debt after a settlement process.


They need to get permission, once they have it, they can. An attachment of earnings order is a method by which money will be stopped from a defendant's wages to pay a debt and as such will only help if the defendant is in paid employment. :(



No its illegal, you have to pay your debt rather than hiding. If you not paying your debt and hiding from debt they can take you to the court.


If you are in need of money to help a finical situation you may be forced by debt collectors to create a loan to pay them off


There are specific laws in place to protect consumers from harassment from debt collectors. It is illegal for debt collectors to contact you at work if your employer does not allow this. Record all contact by debt collectors just in case you have to take them to court in the future. Also, I advise you to check online for laws in your state that protect you against harassment.


Debt collector & third party communications:Debt collectors may only contact third parties to ascertain your location/whereaboutsDebt collectors may not reveal to third parties that you owe debtDebt collector may not harass you, or third parties in connection with collecting a debt:Debt collectors may not use threats of violence or harmDebt collectors may not use profane or obscene languageDebt collectors may not repeatedly use the telephone to annoyDebt collectors may not publish a list of debtors (except lists sent to credit bureaus)Unfair and deceptive debt collection practices are not permissible:Debt collectors may not make false implications of government affiliationDebt collectors may not assert false threats of legal action or legal statusDebt collectors may not falsely imply you committed a crimeDebt collectors may not deposit a postdated check prematurelyIt is also a good idea to keep a log of when you receive your bills; that way, when a bill does not arrive on time, you can call the company and inquire into its absence and likely avoid any late fees. If you feel a debt collector has violated the law, you should also take steps to document such behavior


Yes!! you can settle your debt before, during, and after litigation. If you decide to enroll in a program, be leary of any that don't disclose information to you. generally a good debt settlement company will require extra steps from you prior to enrolling a legal/judgment debt. A bad debt settlement company will take your debt no questions asked.


they can take you to court, remove your unessential furniture - like your tv and hi-fi, they could demand you be declared bankrupt, if it is a government debt or a utility debt they could even arrest you. But even if you have little money, you can offer than


if your husbands name is on the title, yes, it is possible... sorry for your badluck snm


The easiest way to deal with debt negotiation is to take care of it yourself. Make a list of money owed, and to what companies, call them all and offer them a payment plan.


if child support find out about a settlement being recieved can they take money owed to them


Debt negotiation is easier to do if you have a large sum of money to start out with. You just need to make a list of your bills and how much you owe, then call the companies and offer them a settlement.


They can't touch your social security. However; if you have other income, they can and will take that.


There are so many debt settlement companies but choosing the best one is seriously very tough.If you need the best debt settlement company you are probably asking yourself that how do i chose the best debt settlement company?You ask some questions yourself and if you get a satisfactory answer from your questions then you chose the company.1. Does the Company charge any fees prior to reducing your debt?It is very important question to chose the best debt settlement company. Your first choice should be a true debt settlement company that has $0 fees until we reduce your credit card debt.2. How does the Debt Settlement Company Charge its fee?Most debt settlement companies charge you a flat fee of the debt amount you enroll. For example, a 20%flat fee works like this:Your Original Debt $10,000.Service Fee: 20% (10,000 x .20)= $2,000 Total FeeIf like in the above example your debt is settled for $8,000 and you add the $2,000 fee, you didn't really save much.3. Are There Any Monthly Fees or "Maintenance Fees"?No Fees Prior to Settlement means No Fees Prior to Settlement. End of story.4. Did the Company Explain How the Program Works and Consultant You On All Your Options?Before enrolling into a Debt Settlement Program, consumers should be fully aware of how a debt settlement program works.5.Are You Dealing With A Full Service Debt Settlement Company?A Full Service Debt Settlement Company will handle all aspects of your file from consulting, to negotiating and client support. However, a huge majority of companies are merely signing up clients and then sending it over to a completely different company who handles the negotiations and customer service.Take this questions and chose the best debt settlement company.


Tell them to take your name/number off of their list. They have lists of numbers they just call....


You could help him get out of debt by a few things, have him loan money, use a debt program that will supposedly take care of debt, or have him find out his credit score.


A debt is a debt. The credit card collectors can take you to court and get a judgment on you to pay what is due. They can have your wages garnished. This is the channels they will take first. If they do not get satisfied through garnishments they can go after your property. But this is rare.


The difference between a consolidation debt loan and a regular debt loan is that when you take out a consolidation debt loan you are borrowing money to pay other debts.


If your debt is less than $10,000 you may go for consolidation. In case it's more than the said amount you may try out settlement. Settlement takes a hit on your score initially but gets you out of debt much faster. If you go for settlement, you may negotiate with your creditors for a lower amount, or you may enroll with any professional settlement service. In comparison, consolidation clubs your loans into one single monthly payment, waives the associated charges or interest. Consolidation may take a longer period of time to get you debt free depending on your loan amount.


Credit cards are unsecured debts; your creditor can't take away any of your property if you fail to pay the debt back in accordance with your card agreement. Your creditor can sell the debt to a collections agency or sue you to recover the debt. Creditors and debt collectors can't engage in underhanded or violent tactics to get you to pay your debts. If you owe money to credit card companies, you should become familiar with your rights. The Fair Debt Collection Practices Act limits the power of debt collectors. Collectors must not harass or intimidate debtors into paying debts, and must inform debtors of their rights upon first contact. Debt collectors must announce themselves; they must begin the call by telling the debtor what company they are from and that they are attempting to collect a debt. The debtor can then tell the debt collector not to call them anymore and the collector must oblige; however, the collector may still contact the debtor to inform him of upcoming litigation surrounding the debt. Debtors may also ask the debt collector not to call them at work. Debt collectors are also limited as to how often, and when, they may call debtors. Debt collection calls may only take place between 9 a.m. and 9 p.m; calls are not allowed at times when it's reasonable to assume a debtor may be in bed. There's no firm rule on frequency of calls, but debt collectors may not call so frequently that it becomes harassment. Debt collectors also may not discuss the debt with anyone other than the debtor. If a debt collector speaks to friends or family of the debtor, he is limited only to asking for a contact number or address for the debtor. Debt collectors may not use intimidation techniques to coerce debtors into paying debts. They may not threaten violence against the debtor and may not verbally abuse the debtor; cursing at the debtor, yelling at her or calling her names are forbidden. Debt collectors also may not make threats that they don't have the power to carry out. For example, a collector may state that his office is going to sue to recover the debt if the office plans to carry out such a threat. However, the collector may not state that the debtor will lose his home due to credit card debt. If a debt collector violates any of the provisions of the Fair Debt Collection Act, the debtor has a right to file a complaint against him with the Federal Trade Commission. In some cases, debtors may sue debt collectors for damages related to violations of this act. Debtors should also contact an attorney if they have any questions about their rights regarding credit card debt, if they are considering filing bankruptcy or if they receive a notice of a lawsuit against them by a creditor or collections agency.


The Fair Debt Collection Practices Act (FDCPA) was first enacted in 1977 to protect consumers against certain debt collection tactics. This goal of the FDCPA is to keep debt collectors from deceiving, harassing or taking advantage of consumers. While this law does not cover business debts, it does cover all personal debts, like credit card debt, medical bills and auto debt.What Debt Collectors Are Forbidden to Do Under the Fair Debt Collection Practices ActUnder the FDCPA, debt collectors must send consumers a written letter within five days of first initiating contact by telephone. This letter must contain specific information, including the balance of the debt, who is currently pursuing the debt, and the original creditor. The initial letter must also let the consumer know that he or she has 30 days to dispute the debt or request validation.The FDCPA also prohibits when and how a debt collector may attempt to collect a debt. Debt collectors are allowed to send written correspondence, call, or visit a person's home or place of employment. Phone calls and visits must be limited to the hours between 8 a.m. and 9 p.m. However, debtors can forbid debt collectors from contacting them at work if it puts their job in danger. Collectors who ignore such a request are violating the FDCPA.Debt collectors are also prohibited from threatening or harassing consumers. A debt collector cannot threaten a debtor physically or threaten to tell others about the debt. Collectors may not use offensive language, lie or contact a consumer excessively. Calling several times a day is generally considered excessive.How Consumers Can Fight Back Against Debt Collectors Who Violate Their RightsIf a debt collector has violated the terms of the FDCPA, consumers can take action. Debt collectors that violate the law can be sued within one year of committing the illegal action. Consumers who intend to sue a debt collector might need to seek legal representation to help them prepare their case.If the consumer wins the case, he or she may receive up to $1,000 to cover lost wages or other expenses. The debt collector will also be forced to reimburse the consumer's court costs and legal fees. While this will not void the consumer's debt, it should help the consumer repay the delinquent amount.



It is legal for companies to purchase charged off debt from credit card companies and then to collect it. If you owe the money, the sale doesn't change that. The Court can only determine whether or not the money is owed. Not having money is not a defense. If the Court determines that you owe the money, the company will have a judgment that can be collected via wage garnishments, bank levies, property liens, and so on. Companies do sue on debts, and they do obtain judgments. If you cannot work out a settlement or payment plan with the owner of the debt, consider bankruptcy protection.



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