Creditor Harassment

29 May Credit Card Judgment: Too Late For Bankruptcy?

Credit cards file lawsuits to show they're upset and they miss your payment. If they win, they have a judgment against you. It's not unusual for debt collectors to say bankruptcy doesn't "work" then. They're wrong! Bankruptcy filings stop collection of debt in its tracks. That's...

Read More

06 Mar Direct Deposit Requirement may Create Problems for Debt Laden Social Security Beneficiaries

bank account levySocial Security’s new rules requiring all beneficiaries to set up direct deposit could create significant problems for beneficiaries who owe money to creditors. Protected Social Security funds that are co-mingled with other monies will likely lose their protected status and could be seized by creditors. Federal law provides that Social Security payments are exempt from garnishment from civil creditors. If, for example, a credit card lender sues you and obtains a judgment, that creditor cannot ask Social Security to withhold funds from your government check. The only exceptions to this rules involve:
  • tax debts owed to the IRS
  • child support debt
  • all claims (including tax and child support) against SSI money. SSI is considered a welfare payment and not subject to seizure by anyone.
Social Security money that is co-mingled with non-Social Security money, however, may lose this special protection.
Read More

29 Aug How To Defend A Credit Card Lawsuit Even If You Owe the Money

If you're on the wrong end of a credit card lawsuit, you're faced with the prospect of a judgment against you. If you're smart, you've got powerful weapons you can use. Lots of times you're served with a lawsuit for a credit card debt and think to yourself, I owe the money. Guess I've got no defenses. You're wrong. In fact, there are a number of actions you should take immediately.

Read More