Stop Bill Collectors!

How to Stop a Debt Collector From Freezing Your Bank Account

Janice — Wed, 10 Feb 2010 15:51:04 +0000

When you don’t pay your bills on time, don’t respond to the calls from the credit card companies or the collection agencies and live under cover, you could wake up one day to find your bank account temporarily frozen. That will be a bad day if it’s the day your rent or mortgage is due! You may have missed the judgment notices in the mail (or maybe you moved). You may not even know your creditors went in to court and sued you. You have no idea they got a judgment against you and used it to empty your account. When the creditor follows legal procedures, your account may not be garnished immediately. Instead it might be temporarily frozen.

You won’t be able to get any money from your bank account, but can make deposits into it (as if you would want to!). This has a major impact if you write checks for all your payments, because once your account gets frozen by a court, the checks will start to bounce. What you want to know is how to stop a debt collector from freezing your bank account in the first place. Take calls from credit collections agencies as a warning sign and do the following to stop or avoid your bank account getting frozen by a court order.

1. Make small payments towards the debt. Even if it’s $10 a month, it might be enough to stop them suing you. (Think about this, would you rather send them $10 a month or wake up one day to find your account frozen?).

2. Ask the debt collections agency to validate your debt. Do this multiple times: it’s a great weapon that can get your debt cleared. Just send a letter to the agency asking them to validate the debt. That’s it.

3. Stop using your checking account. This is the ONLY certain way to stop a creditor freezing your account, if they have a judgment against you.

Remember: be proactive! If they have a judgment and have already frozen your account, it’s too late to hold onto your money.

*http://www.stopbillcollectors.us/articles/how-to-avoid-being-sued-by-your-creditors
*http://www.indianajustice.org/Data/DocumentLibrary/Documents/1053360095.22/do c_0105bank%20seizure.pdf

How to Fight a Bank Account Garnishment

Janice — Mon, 08 Feb 2010 16:54:18 +0000

Garnishing the bank account of a debtor, would be the final step that a creditor would try against you to recover the liabilities. In the process of bank account garnishment, the creditor has to obtain a legal order from the court to freeze your bank account and take away the required amount of money that would satisfy the judgment. If the account lacks enough money, then you are accountable for the remaining money due. They will keep coming after you until they get their money!

In every other case of bank account garnishment, you would definitely want to know How to fight a bank account garnishment. The main motive in trying to fight bank account garnishment is to avoid them from taking your money. There are several possible ways you can keep your money safe, even when you are holding a huge amount of outstanding debts.

In the first place you can keep your bank account empty, so that the process of bank account garnishment will not have any effect as there is no available money for the creditors to take away.

Request that your employer provides you with checks instead of doing a direct deposit in your bank account. But one thing you have to keep in mind is you will then have to pay your bills by using money orders. Otherwise you will be in court answering for a number of bounced checks. And, believe it or not, district attorneys don’t accept the defense that a shady bill collector emptied your account and caused you to bounce your checks.

Another way to tackle this problem is by setting up an exemption bank account as per the state exemption laws, if you earn exempt funds like social security or disability. By doing this you will have the law on your side to protect the money in your account, as this requires filing of an exemption with the court.

Opening a bank account in a different state would also be an option to fight against your bank garnishment, but this isn’t a full time protection of your money. There is a good chance of the creditors tracing this new account of yours and eventually they will empty it. But this won’t occur overnight, as they would have to deal with the courts in a different state and go through their set of exemptions and rules.

One of the best ways to protect your money from getting garnished is, to open an offshore bank account and save all your money in it. It is 100% legal and is being utilized by individuals and organizations across nations to safe guard their assets.

Judgments: What are the State Exemptions for Oregon?

Janice — Mon, 08 Feb 2010 16:47:22 +0000

When you declare bankruptcy, or are facing a judgment, this does not mean that you will lose all of your assets or personal property. There are exemption laws that prevent this from happening, thus allowing you to hold on to certain property, savings and insurance, as well as some types of investment. To gain access to all of your legal entitlements, you need to gain an understanding of the state exemptions that apply in your state. Having this knowledge will enable you to fill out the required bankruptcy forms correctly so that you can keep your property.

Like other US states, if you live in Oregon you do have asset protection. These laws entitle you to claim property as exempt (i.e. protected from creditors), if it has not been used as collateral for a loan. However, if you have signed over property (whether it be your home, car or boat) as security for a loan, it is no longer protected under exemption laws.
In the state of Oregon, you are able to claim exemption for the following types of eligible property, assets, savings and income:
• Homestead: An exemption of up to $30 000 applies to real property that you occupy or intend to occupy. This amount increases to $39 600 for joint owners. There is also provision to claim exemption for house boats and mobile homes. The only other requirements for this type of exemption are land size. Your home cannot exceed one block if it is in town or exceed one hundred and sixty acres outside of town.
• Personal property. This includes items such as: bank deposits and higher education savings accounts, jewelry and clothing, furniture, cars and firearms.
• Income and wages: A percentage of income and wages are eligible for exemption as well. This means that creditors cannot take all of your earnings for the purpose of covering debt. In Oregon, you are able to legally keep 75 per cent of your wages or $170 per week, whichever constitutes the largest amount. For low income earners, a judge may even authorize a larger exemption.
• Life insurance, pensions, retirement savings and public benefits in certain circumstances are also eligible for exemption. It is important to remember that if a large portion of your investments are tied up in life insurance policies, it is best to consult a professional regarding your exemption entitlements.

Reference: http://www.legalconsumer.com/bankruptcy/bankruptcy-law.php?&ST=OR

Bankruptcy and Judgments: What are the State Exemptions for Pennsylvania?

Janice — Mon, 08 Feb 2010 16:45:59 +0000

When filing for bankruptcy, or fighting a judgment, it’s important to understand what property and assets you can protect, as well as any earnings, savings and insurance you are entitle to claim as exempt. Declaring bankruptcy or being sued by a creditor doesn’t automatically mean that you will lose everything you have, but familiarizing yourself with the exemption laws for your state can ensure that you hang on to everything you are legally entitled to.

State exemptions for Pennsylvania.

As with other US residents, people living in Pennsylvania can claim property as exempt, so long as they have not used that property as security for a loan. The moment you sign over property as collateral for a loan, it ceases to be protected under exemption laws.

Exemptions that can be claimed for eligible property in Pennsylvania:

While there is no homestead exemption in Pennsylvania, there is provision to claim under the common law of Tenancy by Entirety. This applies to married couples who own a home together (joint ownership). In the case of bankruptcy, Tenancy by Entirety holds the home exempt against the debts of one spouse only.
There is also some provision made for wages. This extends to wages you have earned, but not been paid for, the wages of prison inmates and the wages of victims of abuse.
Other provisions under the state exemptions for Pennsylvania include life insurance, savings and personal property. There is also a ‘wild card’ exemption, which applies to $300 of any property whether it is cash, real property, sale proceeds or securities. However, it is important to remember that most of these exemptions are extended to people who fit certain criteria and life circumstances. They are not generally applicable to all residents of Pennsylvania. As a result, it is important to thoroughly read the exemptions or consult with a professional to ensure that you claim your legal entitlements.
Residents of Pennsylvania should also note that the state gives a choice of complying with the state exemptions for Pennsylvania or the Federal Bankruptcy Code. This means you can choose the system that gives you the most benefits, but you cannot use a combination of state and federal laws. You must apply the laws of one system consistently. This is a requirement even if you are married – both spouses must claim under the same system of laws.

When investigating your options when faced with filing for bankruptcy, compare your state exemptions with the Federal Bankruptcy Code. The choice of system will depend on individual circumstances, so it is best to know your entitlements under both before deciding which laws to use.

Reference: http://www.legalconsumer.com/bankruptcy/bankruptcy-law.php?&ST=PA

Bankruptcy and Judgments: What are the State Exemptions for Rhode Island?

Janice — Mon, 08 Feb 2010 16:38:51 +0000

Your biggest single concern if you are filing for bankruptcy or if you are on the receiving end of a judgment is making sure that you protect as many of your assets and items of personal property as you are legally entitled to. While US bankruptcy laws do not require all assets and property to be relinquished to pay off outstanding debt (the same goes for judgments), there are restrictions and limitations on what you can claim exemption for and the percentage you can claim.

Bankruptcy laws vary between states, and the state exemptions for Rhode Island are no exception. Residents living here are entitled to protect a portion of their property from creditors, provided that property has not been used as collateral for a loan. For instance, you will not lose exempt property to a credit card company because there is no collateral attached to the debt. However, if you have pledged your boat as security for a loan, you are no longer protected by exemptions laws.

If you are filing for bankruptcy, you’re given a choice between using the exemptions found in the Federal Bankruptcy Code or the exemptions found in state bankruptcy laws. The only requirement is that you use one set of laws only. You are not allowed to pick and choose exemptions from both sets of laws. for judgments, You’ll use the state exemptions.

If you plan on using the state exemptions for Rhode Island, you are entitled to the following:

A homestead exemption of $200 000 for land and buildings that you occupy or have intensions of occupying as your primary abode. If you are a married couple and you own a home jointly (called Tenancy by Entirety), the property cannot be taken by creditors until the tenancy has been dissolved or the ‘debtor’ spouse survives the ‘non-debtor’ spouse in most cases.
Cars: Up to $10,000
Certain items of personal property, tools of the trade, life insurance and pension and retirement savings for certain individuals are also protected. There is also provision for income and wages, but these extend only to military personnel on active duty, seamen, minors and wages paid by charities.

For residents of Rhode Island, it is important to thoroughly compare the state exemptions with the Federal exemptions under the Federal Bankruptcy Code before filing for bankruptcy. Taking this measure will ensure that you make the decision which best benefits you.

Reference: http://www.legalconsumer.com/bankruptcy/bankruptcy-law.php?&ST=RI

http://www.cga.ct.gov/2005/rpt/2005-R-0368.htm

Bankruptcy and Judgments: What are the State Exemptions for South Dakota?

Janice — Mon, 08 Feb 2010 15:59:09 +0000

Protecting your assets, personal property, wages and savings is most important when filing for bankruptcy. In general, US bankruptcy laws do not require you to sell everything you own to cover your debts. However, what you can and cannot claim does depend on the state you live in. This article will help to familiarise you with the state exemptions for South Dakota.

In short, exemptions are laws that protect a percentage of your property (or the equity you have) from creditors, as long as you have not pledged that property as collateral for a loan. There is a Federal Bankruptcy Code, which provides a list of exemptions, however states are not compelled to follow this code. Your state can require you to follow state exemption laws instead.

South Dakota residents must follow the state exemption laws when filing for bankruptcy. The only Federal exemptions that apply are those exemptions listed in Federal laws other than the Federal Bankruptcy Code.

A Guide to State Exemptions for South Dakota:

As with most states, there is a homestead exemption for residents of South Dakota. Here, the homestead is protected to an unlimited value, as long as it is no larger than one acre for a home in town, or no larger than one hundred and sixty acres for a home outside town. The sale proceeds from your home are also protected – up to $30 000 for most people, except those over 70 years of age, who can claim up to $170 000. It is important to remember that only for residents who have been living in South Dakota for a minimum of three years and four months are able to claim exemptions greater than $125 000.
You are also entitled to wage exemptions, which limit how much can be taken from your wage in debt collection by creditors. In South Dakota, wages earned sixty days prior to filing for bankruptcy are protected, as long as they are needed to support a family. There are also Federal non-bankruptcy laws that apply to wage garnishment.
Further state exemptions for South Dakota entitle you to protection of certain items of personal property, pension or retirement savings and life insurance.

Knowing your entitlements is the first step in protecting your property when faced with bankruptcy or judgments. It is important to be able to fill in the required bankruptcy forms accurately so that you can be confident that you protecting what you are legally entitled to protect.

Reference: http://www.legalconsumer.com/bankruptcy/bankruptcy-law.php?&ST=SD#exemptions

Bankruptcy and Judgments: What are the State Exemptions for Tennessee?

Janice — Mon, 08 Feb 2010 15:53:02 +0000

If you are considering filing for Chapter 7 Bankruptcy in the state of Tennessee, or if you are being sued by creditors (perhaps you already have a judgment against you), you will need to familiarise yourself with the state exemptions. Bankruptcy exemptions are state laws that distinguish your property as “off limits” to unsecured creditors. This means that these types of creditors cannot force you to sell your property to cover debts.

Although there is a Federal Bankruptcy Code, which provides a list of exemptions, bankruptcy laws do differ from state to state. This means that some exemptions listed on the Federal Bankruptcy Code may not apply in some states.

This is certainly the case in Tennessee, where state law requires anyone filing for bankruptcy to use the state exemptions listed in state law – not the Federal bankruptcy exemptions. The only Federal exemptions available to individuals are “non-bankruptcy” ones – i.e. those exemptions found in Federal laws, but not in the Federal Bankruptcy Code.

So, what are the state exemptions for Tennessee for judgments and bankruptcies?

Most importantly, there is a homestead exemption for Tennessee residents, although it isn’t very much. This means that you can protect the equity you have in your family home. Single homeowners are entitled to $5000, whereas joint owners can claim $7500. These amounts vary again if you have dependent children or are over the age of 62. However, these exemptions only apply if you have been living in Tennessee for more than two years. If you have recently moved to Tennessee, you may be required to claim exemption under the laws of your previous state of residence.
You can also claim a wage garnishment exemption. This limits how much creditors can collect from your wage. In Tennessee, you are entitled to keep 75% of your wage or 30 times the federal minimum hourly rate – whichever is greater.
Other state exemptions for Tennessee include a ‘tools of the trade’ exemption up to $1900, which covers those tools used for work purposes, certain personal property exemptions, life insurance and pension and retirement savings exemptions.

If you are being sued by your creditors, the exemptions are those items that you won’t be forced to sell. When filing for bankruptcy in the state of Tennessee, it is very important to familiarize yourself with the precise exemptions you are entitled to claim. This will ensure that as much of your property, income, savings and assets are protected and remain yours to keep.

Reference: Legal Consumer: Tennessee Bankruptcy and Law Information http://www.legalconsumer.com/bankruptcy/bankruptcy-law.php?ZIP=37398&ST=TN&CBSA=46100&FEDCT=TNE&CITY=Winchester&METRO=Tullahoma

How to Stop Garnishment of Bank Account

Janice — Mon, 08 Feb 2010 15:39:00 +0000

It is a terrible feeling once you realise that the money you had in your bank account is now gone. What’s even worse is realising that this can be done legally and the bank will let it happen. This is because your creditors, once they have a court order against you, can take the funds from your bank account as a way of recovering the debt you owe them. In this instance, your bank is powerless to protect your money.

Your options:

Check out the options available to you in your state of residence. Some states will allow you to open a special bank account that is exempt from creditors (“an exempt account”). This means that creditors cannot touch the funds you have in this account. The best way to go about this is to consult a legal professional. This will ensure you get accurate advice.
Another thing you can do is cancel the direct deposit of any income into your bank account. Consult with your employer or clients (if you own a business) and have them pay you either by check or cash. Granted, it is a bit archaic, but at least you get peace of mind by having your money safe in your hand at the end of the day. Your creditors cannot withdraw funds that aren’t there in the first place, so dealing in cash is a good way to stop garnishment of a bank account.
The last option available to you is to open an account in another country. This is called offshore banking and there are many overseas banks that accept United States citizens and even deal in US currency. The benefit of this bank account is that you still have access to your funds via online banking and your creditors can’t touch funds that are outside the United States – so your money is safe.

There is nothing worse than discovering that your bank account is empty, especially when you are getting paid and you know the funds should be there. It does feel like a gross violation of privacy on the part of your creditors, but it is avoidable by following the above steps.

How to Avoid Checking Account Garnishment

Janice — Mon, 08 Feb 2010 15:33:09 +0000

One of the most disturbing things that can happen to you is to have the money disappear from your checking account. What’s even more disturbing is that your creditors – the people you owe money to – are able to legally take the funds from your account, without notice to you, once they have filed a judgment against you and obtained a court order. Of course, you are within your legal rights to fight the matter in court, against your creditors, to get your money back. But if that creditor has a judgment in hand, you will surely lose.

This will cost you a pretty penny in legal fees and you might ask yourself the question – can you really afford to rack up more debt in legal fees to get a few thousand dollars back? Of course, this doesn’t make sense, especially when the reason your checking account is being emptied in the first place is because you have unpaid debts! What does make sense is to avoid this horrible situation in the first place.

In some states, you are able to set up an exempt bank account. This is a bank account that creditors cannot garnish. Your bank will be able to tell you if you can set up an exempt account. It can be a complex process, but it is one way to avoid checking account garnishment.
Stop all direct deposits into your checking account. Instead, organise with your employer to pay you the old fashioned way – by check. You can then go and cash this check, and have money in hand. Whilst it is a bit of a hassle to reorganise how your employer pays you, it is worth it so that you can assume control over the money you receive.
Another possibility is opening an offshore bank account. This is a perfectly legal way of making sure you avoid checking account garnishment as creditors in the United States are unable to access funds in bank accounts outside the country.

No one likes the idea of having their checking account emptied by their creditors. Don’t bury your head in the sand: if you can’t afford to pay your creditors, make sure you judgment proof your assets (and that includes your checking account!).

How to Stop a Garnishment Without Filing for Bankruptcy

Janice — Mon, 08 Feb 2010 15:27:19 +0000

If you have creditors who file a judgment against you for debts owed to them, your wages could be docked. While the laws on wage garnishment differ from state to state, generally once creditors have a court order against you, they can take 25 per cent from each pay check. Once a creditor has filed a judgment against you, there are very few options (besides bankruptcy) available to you. Therefore, the trick is to stop a garnishment before a creditor obtains a court order.

There are two types of claims you may be able to use to stop a garnishment.

Claim of exemption. You need to file this if you are not able to cover basic living expenses like food and housing. The form for this claim is available from your local courthouse.
Head of household exemption. This is for people whose wages support a spouse and family. If you intend to file for this exemption, you will need to write a letter and file it at your local courthouse. Not all states have a ‘head of household exemption’, so you will need to check the laws for your state of residence.

If you are not eligible to claim either of these exemptions, you can try tackling the problem by contacting your creditor directly. Call your creditor and explain your situation. Offer to pay a percentage of the debt and then ask if you can establish a fortnightly or monthly payment plan and obtain any agreement of this in writing.

Seeking advice to consolidate your debts will also help to stop a garnishment. Debt reduction programs are mainly concerned with helping you to pay back unsecured debts, like credit cards. With a debt reduction program, you agree to pay over time and the interest (and sometimes, principal) is reduced, so you pay less per month. The idea being that you pay back the debt in full over a period of three to five years. This means that your creditors are still being paid, so they won’t pursue wage garnishment.

Unfortunately, the only other way to stop a garnishment is to pay the debt in full. Making a full payment is the easiest and simplest way to stop a garnishment once it’s under way.