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Original creditors sell defaulted accounts to third party collectors who attempt to collect the debt and any fees that are applicable. If settlement cannot be reached with the debtor, the collector may refer the account to a collections attorney. The attorney must be licensed in the state where the debtor lives before a lawsuit can be filed. If the lawsuit is won, a writ of judgment is granted. The judgment can be executed in the form of wage garnishment, bank account levy, liquidation of nonexempt property or lien(s) against real property. State laws govern what property is exempt and what can be seized for repayment of debt. In theory a creditor can use the judgment writ to initiate the forced sale of a home. Most primary residences can be protected from forced sale by the state or federal homestead exemption. Liens against property are usually granted, although there are a few exceptions. Other property such as a summer home or rental property cannot be protected by a homestead exemption and therefore could be subject to seizure and forced sale by a judgment creditor
What else can I help you with?
How does one get rid of a bad line of credit using home equity?
A home equity line of credit is kind of like borrowing from a credit card company only instead it is borrowing from the available equity from your home. Home equity helps consolidate higher-interest rate debt on other loans.
What happens when paying off an equity line of credit?
Nothing happens when you pay of an equity line of credit. The equity that you used for your line of credit is now safe.
Where could one find information on obtaining a home equity loan for people with bad credit?
An equity calculator could be used to see just how bad the credit is and whether or not you would be denied by most mainstream lenders. Additionally, a credit score company, such as Experian can be used to find your overall credit score. You can seek advice from such companies as Zillow after finding your exact credit / equity scores.
What is equity line of credit?
An equity line of credit is issued based on the amount of equity you have in your home. If you have a $100,000 house and owe $75,000 then you would have $25,000 in equity.
Which companies offer home equity to homeowners with bad credit rating?
A great company for homeowners with a bad credit rating is Bad Credit Home Equity. They have a website that is quite easy to find. Another solution to the problem would be to find small business lenders in the area.
Why equity account have a credit balance?
Because equity is an income - therefore it is a credit, not a debit.
Does the owners capital account normally has a debit or credit balance?
Credit because it is an equity account
Is a liability account a debit or a credit?
Remember the basic accounting equations Assets = Liabilities + Owners Equity (Stockholders Equity) Assets increase with a debit Liabilities as well as Equity increase with a credit Liabilities have a credit balance (meaning you must credit the account to "increase" it and debit the account to "decrease" it) this makes liabilities a credit.
Accounting equation and rules of debit and credit?
Accounting equation: Owner's Equity=Total Equity + Revenue - Expense - Equity of creditors Rules of Debit and Credit: Personal account: Debit the receiver. Credit the giver. Real account: Debit what comes in. Credit what goes out. Nominal account: Debit all expenses and loses. Credit all income and gains.
Why capital and equity account have a credit balance?
Because they are both income. Capital and equity are sums of money deposited into an account. They are not withdrawals.
What is the difference between debit account and credit account?
There are two main differences that stand out between a Debit Account and a Credit Account, those are;A Debit Account always maintains a Debit Balance, meaning the account increases with a Debit to that account and decreases with a Credit to that account. These are generally Asset Accounts.A Credit Account is just the opposite, A Credit Account maintains a Credit Balance, meaning that the account increases with a Credit and decreases with a Debit, these accounts are usually used for Liabilities and Owners Equity (Stockholders Equity).
Does owners equity account balances in the credit side?
Yes. Owner's Equity is a credit and typically displays on the right side of a balance sheet.
Is an accounts receivable account in accounting a debit or a credit balance account?
It's on the Debit side. A current asset. A = Assets --------DEBIT L = Liabilities -----------------------------CREDIT O = Owner's equity --------------------------CREDIT R = Revenue ---------------------------CREDIT E = expenses --------DEBIT All expenditures in different heads of accounts are debit and all income are credit. for an example, you deposite a certain amount to your correspondence bank. To your company's account register bank account of that certain amount will be debit & your company's account will be credit of that said amount. Credit decreases the normal balance of Office Supplies account.
How do you post an increase in an asset and an increase in equity?
To post an increase in an asset, you would debit the asset account, reflecting its rise in value. Simultaneously, to record an increase in equity, you would credit an equity account, such as retained earnings or contributed capital. This dual entry maintains the accounting equation (Assets = Liabilities + Equity) and ensures that the financial statements remain balanced. For example, if a company receives cash from an owner, it would debit Cash (asset) and credit Owner’s Equity (equity).
Do revenues have a credit or debit balances?
Revenue is an Owners Equity account therefore has a Credit Balance:
Is capital a debit or credit to an owners equity?
Capital is a Credit Balance account. To increase capital and therefore increase OE, you will Credit the account. Not DEBIT. You Debit Cash, Credit Capital.
Definition of contra equity?
Contra Equity refers to an equity account with a normal debit balance, where as other standard equity accounts have normal credit balances. Expense accounts are contra equity accounts because they are used to find totals for a debit of the owner's equity account.
