Bankruptcy Garnishment Lender Original Creditor 
Debt Free Colorado
FEBRUARY 21, 2022
Bankruptcy may appear to be a scary process, but it does not have to be. You may be able to apply for one of many different types of bankruptcy, each of which accomplishes various aims, depending on your specific situation. The Fair Debt Collection Practices Act (FDCPA) does not apply to original creditors or cover company obligations.
Credit Corp
JUNE 14, 2023
Lenders don’t necessarily continue to report activity for the entire limit. Your creditor may sell your charged-off debt to a collection agency for pennies on the dollar. Pro tip: Even if a debt has been charged off, consider contacting the original creditor to negotiate a settlement.
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Credit Corp
JUNE 14, 2020
The original lender or collection agency fails to collect within the statute of limitations. If the original creditor went to court and obtained a judgment against you for a debt, the zombie debt cycle can be more complicated. That can include wage garnishment or levies. You default on a debt.
Sawin & Shea
JUNE 9, 2021
Approximately one third of consumers with a credit bureau file were contacted by at least one creditor or debt collector each year, according to a CFPB (Consumer Financial Protection Bureau) survey. The FDCPA applies only to debt collectors (the third-party collection agencies), not to the original lender.
Debt RR
DECEMBER 13, 2019
There are 35 major bankruptcies in 2019 so far, and over two-thirds happened in retail. Ignoring a process server can cause the court to garnish wages , place a lien against any property, and freeze any accounts. Negotiating with creditors outside of court saves everybody the time, money, and effort of a civil lawsuit.
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