Debt settlement is the process of paying off debt to a creditor after mutually agreeing to a sum less than what is owed. Usually, only unsecured debt, such as credit cards and medical bills, is eligible for settlement. This can be done with the assistance of an experienced debt settlement company or, in some cases, an individual may choose to do this on her/his own.
Experience Counts
Angel Debt Solutions is an experienced firm in debt consolidation and settlement. If you owe money to credit card companies, medical bills, department store credit lines, telephone, electric and utility bills, personal loan, income taxes and back rent (except in states that allow landlord liens), then consolidation or settlement may be for you. No one WANTS to file bankruptcy and Angel Debt Solutions will help fight for you.
Most debts are unsecured. The primary exceptions are home and auto loans, which are almost always secured.
Advances on lines of credit can be unsecured claims. Some lines of credit are unsecured, backed only by your promise to repay advances taken against them. Obligations on home equity lines of credit, on the other hand, are typically secured claims (secured by your home).
What Happens If You Don't Pay an Unsecured Debt?
If you fail make payment on an unsecured debt, the creditor can contact you to try to obtain payment, report the delinquent debt to a credit reporting agency, or file a lawsuit against you. Generally, a nongovernmental, unsecured creditor cannot seize any of your assets without a court judgment.
How Unsecured Creditors Can Get a Court Judgment
To obtain a judgment, a creditor must file a complaint in state or federal court and serve you with a copy (this is the start of the lawsuit). You have the right to file an answer to the complaint and contest the lawsuit before a judgment can be entered.
Remedies Once the Creditor Has a Judgment
Once a creditor obtains a court judgment against you, it can proceed with collection remedies. Collection remedies and procedures are governed primarily by state law. A judgment creditor may, among other things:
- take your examination under oath to obtain information about your income, other obligations, and assets
- garnish your wages and bank accounts, and
- attach and sell real and personal property.
The percentage of your wages that can be garnished varies from state to state. State and federal law also exempt some real and personal property from collection. Creditors cannot garnish or collect from assets to the extent that they are covered by exemptions. Exemptions available to you may protect your home equity, household furniture, pension plans, and other items of property from your creditors' collection efforts.
Avoid this mess. Call Angel Debt Solutions today and let us fight for you and get you back on track.
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