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Can a Cosigner Take You to Court? 4 Potential Scenarios + Alternatives

Credit Corp

Two common methods include wage garnishments and bank levies. When the court orders a wage garnishment, the money you earn from your job will go to your cosigner to settle your debt. Not all credit card issuers will be open to this, and applying for debt forgiveness could hurt your credit score.

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Need to Know About Debt Negotiation and Settlement?

Sawin & Shea

Whether or not you file for bankruptcy also depends on the kind of debt you have. Bankruptcy will wipe out credit card debt, medical bills, and personal loans, but will not eliminate primary obligation debt; things like student loans, child and spousal support, and newer tax debt. What are the warning signs?

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Dealing with Debt Collectors

Debt Free Colorado

Some states, such as Colorado, have laws that protect customers against debt collectors. You have rights to help you gain control over your debt collection interactions. To learn more about pursuing your legal rights, contact your state’s local consumer agency.

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What Can I Keep if I File For Chapter 7 Bankruptcy?

Sawin & Shea

The money earned from these sales then goes to the creditors and any remaining balances on the debts are discharged. Debt Collection Laws: What Can Debt Collectors Do? Debt collectors have a legal right to pursue the collection of personal debt within the bounds of the law.