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An In-Depth Guide to Bank Account Garnishment in Texas and How to Avoid It

Debt RR

This unpaid debt can lead to a serious problem for businesses: garnishment. Bank account garnishment can create serious cash flow blocks for companies of all sizes, and those cash flow problems can compound into other issues, like payroll concerns and late payments on other accounts.

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What is a Judgment?

Credit Corp

So, what happens when you don’t pay a bill or repay a debt? The company, creditor or collection agency has legal ways to pursue payment. The court enters a judgment against you if your creditor wins their claim or you fail to show up to court. Non-exempt property can be taken to help meet a judgment debt.

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What Is a Judgment?

Credit Corp

That means judgment creditors can seek debt payment from more than your wages and bank accounts. Creditors must follow the law when applying a judgment to take, or seize, your property. Non-exempt property can be taken to help meet a judgment debt. This is known as wage garnishment. Nonwage garnishment.

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Debt Consolidation vs Bankruptcy: Which is Better?

Sawin & Shea

Also, if your credit score is already quite low, you may not be able to qualify for low interest which makes debt consolidation a useful method of debt management. How Does Debt Consolidation Work? Creditors do not have to participate. The issue with these programs is that they are voluntary.

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You’re in Debt: 9 Terms to Know

The Kaplan Group

FDCPA ( Fair Debt Collection Practices Act). The Fair Debt Collection Practices Act (FDCPA) is a federal law that restricts the behavior of collection agencies when they are attempting to collect money from individuals. The law does not apply to collecting from businesses. Garnishment.

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Can Debt Collectors Follow You to Another Country?

Credit Corp

If you owe money and don’t pay it, a creditor typically has to get a judgment to be able to force the collection. If you move before that process begins, creditors might not attempt to locate you and file in the correct jurisdiction. Leaving the country would make it harder for creditors.

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How To Deal with Debt Collectors When You Can’t Pay

Better Credit Blog

Regardless of what a debt collector might tell you, you have a lot of rights when it comes to how debt can be collected. In fact, merely mentioning that you understand your rights will, many times, stop debt collectors in their tracks. Your rights come from the Fair Debt Collection Practices Act (FDCPA).