Consumer Rights

Can I Repair My Credit After Bankruptcy?

By | Ask a Credit Expert, Bankruptcy, Consumer Rights, Credit Laws, Credit Repair, Personal Finance, Your Credit

Credit Repair After Bankruptcy

Bankruptcy sounds like a dirty word, but for many people, it is a lifeline to starting over. Whether you lost your job, were overwhelmed with an unavoidable expense or found yourself dealing with a costly illness, bankruptcy was designed to give people a chance to begin again. However, bankruptcy does take a serious toll on your credit score.

Understanding the Impact of Bankruptcy

Luckily, that’s not to say that your credit score is going to be ruined forever. According to the Federal Trade Commission, your bankruptcy can stay on your credit report for as long as 10 years after your debts are discharged, and that can make accessing new credit, buying a home or even getting a job difficult. While the impact can be severe, it is possible to repair your credit after bankruptcy. It just takes some proactive efforts on your part.

Look at it like this: Your credit score is meant to be indicative of how risky it is to let you owe money. High balances, late payments and anything else that could show you may be living outside your means is suspect. Filing for bankruptcy is largely the culmination of those issues. Now, you may have had extenuating circumstances that were completely outside of your control, or you may have merely gotten underwater and couldn’t find your way out. Whatever the case, the bankruptcy on your credit report is objective; it doesn’t matter why it happened. To repair your credit, you have to demonstrate that you are no longer a credit risk.

Starting Over After Bankruptcy

The first advice most people hear after filing for bankruptcy or facing some similar credit crushing issue is to establish new credit as soon as possible. That is good advice, but it is incomplete. Repairing your credit after bankruptcy will require that you have accounts on which you make regular payments. Getting a loan and then paying it off will not do nearly as much good for your credit report as making consistent payments.

“The key is to establish at least three positive trades actively reporting on each of your reports with Equifax, Transunion and Experian,” explains Marco Carbajo for the Small Business Administration. “For example, if you’re currently making timely payments on a car note but have no other positive credit that’s active, then you should obtain two secured credit cards and use them regularly.”

Understanding Your Credit Score

Aside from exercising your credit, you also want to practice good spending habits. According to the Federal Reserve Board, your credit score is influenced by whether you make your payments on time, the amount of debt you have, the number of accounts you have, the length of your credit history and how much you owe.

For instance, once you get your first credit cards after bankruptcy, you will want to make sure that you keep the amount of debt on those cards at less than 30 percent of the credit limit, and increase your credit limit whenever you can – the higher your credit limit, the more your creditors trust you and the better it looks on your credit reports. Also, make sure you are making your payments on or before the due date and paying any billable amounts in full.

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Being Selective About Your Credit

After bankruptcy, you want to be selective about where you find your credit as well. Many people with bad credit are sold solutions that promise to provide them access to new credit far more quickly than through any other source, but beware of those offerings. Even if the lender is legit, if the company is known as a “high-risk lender,” using them for your credit or banking needs could actually hurt your credit score. Instead, focus on well-known lenders and credit companies. Choosing a big bank over a high-risk lender, even if it means you have to start with a lower credit limit or a secured credit card over a traditional credit card, looks better and may even give you more options for growing your credit as you repair the damage from your bankruptcy.

Righting the Wrongs in Your Credit Report

You should also take a look at your credit reports to make sure that the debts from your bankruptcy were discharged properly and that all information is accurate. An error on your credit report can really work against you. To do correct inaccuracies, the Federal Trade Commission says that you will need to obtain a copy of your credit report from each of the credit reporting agencies and inform them in writing of any inaccuracies. You may need to provide proof of the inaccuracy if possible, and it may be necessary to tell your creditor that you are disputing the entry. Hiring a credit repair company can make the process easier. They handle the paperwork for you and handle the dispute on your behalf.

Once you begin to take steps to improve your credit score after bankruptcy, you can start to see modest improvements pretty quickly. As long as you are careful with your credit, choose the right lenders and maintain accurate credit reports, you can repair your credit after bankruptcy.


  • Federal Reserve Board, “5 Tips for Improving Your Credit Score”
  • Federal Trade Commission, “Coping with Debt”, November 2012.
  • Federal Trade Commission, “Free Credit Reports”, March 2013.
  • Small Business Association, “How to Restore Your Credit After Hard Times”, Marco Carbajo, May 2013.

Pay Off Debts – 9 Affects on Your Credit Score

By | Ask a Credit Expert, Bankruptcy, Consumer Rights, Credit Laws, Credit Repair, Credit Reports, Credit Scores

Credit Repair - Pay Debts

Are you wondering how paying off your debt could affect your credit score? There’s no doubt that paying all of your debts is the ideal thing to do, but sometimes it just isn’t possible. If you’ve lost your job or suffered other hardships, you may have to choose which bills to pay. Here’s how each course of action will affect your credit score.

1. Paying in Full

You may be unable to pay in full now, but it’s worth considering in case you win the lottery, find a higher paying job or have some other windfall. When you start paying on time again, you’ll have positive payment history added to your credit report.

Unfortunately, any past late payments or other negative remarks will not be removed from your credit report when you bring the account current. They may affect your credit score for up to seven years from when they happened.

2. Paying Only the Minimum Payment

Paying the minimum payment due by the due date keeps your accounts current and avoids late payment penalties. Even when money is tight, make paying the minimum payment on every account your first priority.

When possible, you should pay more than the minimum. In addition to saving interest, you’ll also be improving your credit profile.

Paying only the minimum payment can lead to your credit card utilization ratio increasing, which will lower your credit score. Credit card companies also have internal models that flag accounts with only minimum payments as high risk, and they may reduce your credit limit or close your account.

3. Paying Late

Paying late should never be an option. Even if you’re trying to pay off a higher interest credit card first, don’t skip paying the minimum payment on your lower interest cards.

If you absolutely can’t make every minimum payment, you should understand the two payment deadlines. The first is the actual due date that must be met to avoid a late fee, while the second is for credit scoring purposes. Late payments aren’t reported to the credit bureau as long as you make the payment within 30 days of the due date.

4. Ignoring Your Bills

If you can’t make your minimum payments and have already had a late payment reported on your credit report, don’t just ignore the bill. It will only get worse.

Unpaid debts will be reported as charged off or result in a lawsuit and judgment against you. These have a much bigger negative impact on your credit report than late payments.

If you’re sued, you’re also at risk of having your wages or bank accounts garnished and losing even more control over your finances.

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5. Using the Debt Snowball Method

The debt snowball method is a strategy you can use once you stabilize your finances and are able to make more than the minimum payment on your credit cards. With the snowball approach, you focus on paying off one credit card at a time — either the lowest balance or the highest interest rate.

The downside to the snowball method is that your credit score may not rise as quickly as it could. It’s typically better to have moderate balances on all of your cards than to have one or two with no balance and the rest almost maxed out.

The credit card companies that you’re only paying minimum payments to may also get nervous, as explained above.

6. Taking Out a Loan to Pay Off Credit Cards

Taking out a loan to pay off credit card debt may or may not be advantageous. The biggest positive impact it will have is to bring up your credit score by reducing your credit card utilization ratio.

However, a loan will often have higher monthly payments than your credit card minimum payments. This puts you at greater risk of making late payments unless you’re absolutely sure you can meet the new payment amount.

Of course, you’ll also need to compare the interest rate of the loan to your credit card rates to see if it’s worth it. This is more likely to be the case if previous late credit card payments have pushed you up to the penalty APR.

7. Offering a Settlement

If lenders believe there is a risk they won’t be paid in full, they’re often willing to accept a lump-sum settlement or a modified payment plan. Legally, you won’t owe them any remaining balance, but your account won’t be reported as in good standing on your credit report.

Your credit report will also reflect that you settled the account for less than what you owed. As with other options, past negative history is not deleted.

8. Paying for Deletion

Paying for deletion is a type of settlement where you ask the creditor to remove negative items from your credit report in exchange for your payment. You may also be able to ask that the account be marked as paid in full rather than settled or charged off.

Technically, the credit bureaus don’t allow this practice, but many creditors bend the rules if it helps them get paid. If you’re successful, the negative items will be removed from your credit report, and your score will be the same as it would have been if they were never added.

9. Declaring Bankruptcy

A bankruptcy in itself has one of the largest negative impacts on your credit score, and it also doesn’t erase negative history. However, bankruptcy will stop collections and prevent new negative marks from being added to your credit report.

If you can’t keep up with your payments, bankruptcy may be the best option to stop the damage and allow you to focus on rebuilding your credit score.



Credit Cards: What You Need to Know Before Applying

By | Consumer Rights, Credit Cards, Credit Reports, Credit Scores

Think you know everything there is to know about your credit history and how it will impact your access to credit? In 2013 it was reported that 5% of consumers in the U.S. had an error on a credit report that led to them paying a higher interest rate on a loan.

Out of all the disputes credit card companies faced 16.5% of them were about billing. That’s more than double the amount of disputes regarding interest rates or fees.

That tells us that consumers don’t fully understand and utilize credit reporting. By habitually checking your credit report you can prevent errors and fraud and save money on fees and interest.

If you’re in the market for a new credit card, there are a few steps you should take first. By following these steps you can secure a good interest rate and possibly be approved for a higher line of credit.


Determine what your goals are before shopping for a credit card. If you need to pay down debt on a credit card with high interest, look for credit card promotions that offer 0% balance transfer fees. If you need to make a big purchase look for cards that offer 0% interest for 12 or more months to provide ample time to pay down your debt before interest kicks in.

Shop Around

According to a consumer satisfaction survey first reported in US News Money, consumers are most satisfied with American Express. Credit Card companies that fall short include Wells Fargo and Capital One. Shop various credit card offers before applying.

Compare Rewards

Credit card point programs can be rewarding if you choose the right card. If you travel often and are looking to earn additional travel points go with a card that offers additional rewards on purchases made at hotels and on flights. If you tend to make a lot of small purchases, look for a card that rewards every day purchases like trips to the gas station or market.

Check Your Credit Score

Use a site like to get your credit score and review your credit history. If your credit card utilization is high, you may want to pay down some of your debt before applying for a new credit card. If you’ve already paid down your debt, but your score hasn’t refreshed wait for this to process before applying for an additional line of credit. By waiting you could save yourself money paid in interest later.

Access to credit can be a great thing when used responsibly. Always make sure to practice financial responsibility before applying for additional credit. Review the terms of a credit card agreement before signing up. Be aware of interest rates and due dates to stay on top of your bills and avoid late fees.

Uncovering the Mystery that is Your Credit Report

By | Consumer Rights, Credit Reports, Credit Scores

A credit report can either be the key to or road block to getting access to credit. Whether you’re looking to take a trip or purchase a home, your credit history plays a big role in how much you can borrow at what rate.

While most of us are aware of how important good credit is, many of us don’t know what our scores are or how to improve them.

Luckily popular credit card companies like Discover Card and American Express have started to provide free credit reporting to customers. In addition there’s which is a completely free credit reporting service.

Credit Karma provides users with their credit score overview and detailed description of credit factors. If you’ve never dug into your credit score before you may be confused as to how the number is generated. The following are factors that impact your credit score:

  • Credit card utilization
  • Payment history
  • Derogatory marks
  • Age of credit history
  • Total accounts
  • Credit inquiries

Each of these factors has either a high, medium or low impact on your credit score. While they all impact whether you have poor, good or excellent credit some are more important than others. When attempting to improve your score it’s important to pay the most attention to those factors which have a high impact on your overall score.

High Impact

Having a high impact means that these factors can significantly increase or decrease your credit score. Factors that have a high impact on your score are: credit card utilization, payment history and derogatory marks. Credit card utilization is calculated by comparing the amount of credit you have access to and how much you are currently utilizing. In order to have excellent credit you must only utilize 0% to 9% of your available credit. Someone with a good credit score utilizes between 10% and 29% of their available credit. To have a poor credit rating means that you are utilizing 50% to 74% of your available credit. Payment history and derogatory marks also heavily impact your credit score. As long as you make your bill payments on time you should have an excellent rating.

Medium Impact

Age of credit history has a medium impact on your credit score. Creditors are interested in the age of your credit history, because it helps provide a better picture of your ability to repay debt. If you have no derogatory marks on your credit history, and you’ve never missed a payment but you’ve only had a credit card for 6 months a creditor can’t determine with absolute certainty that you’re capable of repaying debt. Here’s how age of credit history is ranked:

  • Excellent – 9+ years
  • Good – 7 to 8 years
  • Fair – 5 to 6 years
  • Poor – 2 to 4 years
  • Very poor – less than 2 years

Unfortunately there’s not too much you can do to improve the age of your credit history. It is important to keep old cards alive, especially if you are in the fair to poor range. Your first credit card may have been a store card or may not have the best interest rate, but the age of the card can help with your credit history. Keep these accounts from closing by spending a small amount from time to time, and paying debt off right away. This will help maintain your current age and keep it from decreasing.

Low Impact

There are two additional factors that impact your credit score. The total number of accounts you have open, and amount of credit inquiries performed have a low impact on your credit score. The total amount of accounts you have open include student loans, mortgages, credit cards and other loans. In order to have an excellent score you need to have 21 or more accounts active. To fall within the poor score you’d need to have less than 10 accounts open. Any time a creditor runs a credit inquiry your credit score is impacted. Applying for a credit card, car loan or any other type of funding can impact your credit score. Even just one hard inquiry can move your score down from Excellent to Good.

Staying on top of your credit report is important. Not only can it help you improve your credit and odds of getting approved for loans, but it can also help you prevent fraudulent activity. By monitoring credit inquiries you can find out if someone is attempting to take out a loan or credit card in your name before it’s too late.

Was this article helpful? How will you improve your credit score? Let us know in the comment section below.

The Scam of Mobile Cramming Could Be Hurting Your Credit

By | Consumer Rights, Credit Repair, Fraud Protection

Have you been suspicious lately of the size of your phone bill? You may have accepted that hefty bill as a necessary evil of being connected to the outside world, and just paid it with a shrug. But when was the last time you checked through your bill line by line to see where those charges are coming from? If you haven’t, it is a good idea to start doing that from now on, especially if you have been working hard on repairing your credit. You could be the victim of mobile cramming.

Mobile cramming is a scam that has gained the attention of consumers, their carriers, and even lawmakers. It is the practice of companies adding innocent-looking fees to your bill, and Americans are overpaying by the billions because companies are charging for services we didn’t agree to use. According to the Federal Trade Commission, these may show up as generic fees, such as “Activation” or “Subscription”; they are often under headers consumers don’t check, such as “Miscellaneous fees”. They can cost just a couple of dollars a month, but they tend to add up. So, what can you do about it?

Confronting Mobile Cramming

The FTC recommends paying close attention to your bill, as well as unsolicited text messages you receive from third parties, such as horoscopes or romance tips you don’t remember signing up for. Scammers are hoping you won’t notice and will just pay out. The first step is to call your carrier and ask them to explain questionable fees. Some carriers will refund you the money, and some will even cease doing business with the third parties that are caught scamming their customers. You can ask them if they offer a blocking service against third party charges.

Whether or not you get the resolution you desire, the FTC requests you file an official complaint, so they can crack down on this scam. Be a responsible consumer and be on the lookout. Demand an answer about the money you are paying if you don’t understand where it is going.

If mobile cramming has contributed to your financial problems, follow the FTC’s guidelines, and consider a credit repair company like Ovation to help you get back on track. We’re here to offer a free consultation and answer your credit questions. Contact us for a free consultation today.


Read the Fine Print!

By | Consumer Rights, Credit Cards, Personal Finance

You’ve probably seen hundreds of credit card ads in your lifetime, and regardless of whether the offer is on a billboard, in a magazine or in the mail, they all look relatively similar. Each offer promises you something amazing, such as zero-percent interest, printed in a very large font, followed by a page or two of details printed in such a small font, you would need a magnifying glass to read it.

Grab that magnifying glass, because it’s the fine print that matters!

Credit card offers are designed to suck you in with shiny distractions. Credit card companies know that most people will be so preoccupied with the big letters that they’ll sign up without reading the fine print. This fine print may inform the applicant that the low- or zero-interest offer only lasts a few months, that any late payment will cause the interest rate to skyrocket or that there are fees just for having the credit card. However, once you’ve signed the agreement (which you have to do to apply for the credit card), you are bound by the creditor’s rules, whether you’re aware of the stipulations or not.

It is time consuming and painful to read the fine print, but the amount of information tucked away in that small print is what will make or break your credit score. What you’ll find in the fine print is that credit card companies reserve the right to change their terms at any point in time, even if you’ve been playing the game according to the rules. This means they can, with notification, change your interest rate, your repayment amount, the fees they charge or any other point specified in the agreement. You are at the mercy of the credit card company.

In the fine print, you will discover that while you may be pre-approved for a credit card at a low advertised rate, the actual rate you receive may be based on your credit score and other factors. You may apply for zero interest but be approved for 18 percent. And even if you do get the low advertised rate, the fine print tells you that the rate will increase (typically within six to twelve months) and that if you miss a payment or make a late payment, your introductory rate will be pulled.

So how do you know when “late” is? That is in the fine print, along with the fact that the creditor may change the payment due date at will. You may have started on a 28-day grace period, but it could be cut short to 20 days. A given card payment may be due by 5 p.m. while another will be due at noon. It is very important to know what constitutes as “late,” to avoid getting hit with fees and higher interest rates.

Hidden fees are another favorite of credit card companies, and where better to hide them than in the fine print? Hidden fees apply to more than just late payments. For example, overdraft protection can be useful, but not if your fees cost you more than what you have overspent. Additionally, transaction fees can also be a surprise, such as when using your card for a cash advance. Also buried in the fine print is a message that says no matter what the credit card offers in big, shiny letters, there are no guarantees.

As with all agreements, it is essential that you read the fine print. Applying for a credit card because the offer is appealing on its surface can put you at risk of breaking rules you never knew existed. Credit card companies deliberately put their terms in fine print, because those specifics are what make them the most money. Before you agree to any terms, make use of that magnifying glass!

Statute of Limitations Guide

By | Ask a Credit Expert, Consumer Rights

While defaulting on a credit card can destroy your credit rating, you still have some protection against creditors. Your creditors only have a limited period of time in which they are able to sue you for not paying your credit card debt. That period of time is determined by each state’s statute of limitations.

According to the FTC, all states have a statute of limitations period on debts that is between three and 10 years. Behind every statute of limitations, there is a legal agreement that binds the consumer and the loan provider. The most common agreement associated with credit cards is an open-ended account, and although the length of the statute of limitations varies in every state, the clock starts at one of two instances: either when you fail to make a payment, or when the credit card company requests for the amount owed paid in full.

Once the time period for suing has expired, your debt is then referred to as “time-barred.” Such cases are typically dismissed within court, which is why it is important to know the state-specific laws. Once the statute of limitations has expired, a creditor can no longer sue you for the money owed, but they are still within their rights to collect the debt. If a collector calls you to collect on a debt that you believe is past the statute of limitations, you do not have to pay it. If you do make a payment on the debt, it can reset the clock on the statute of limitations and allow the creditor to sue you.

Most of the states have a clear-cut indication of their statute of limitations, but others are more difficult to identify. A given state code may have a set limit, but if there is a court case that has set a precedent different than the statute, it is likely that any decision will defer to that court ruling.

It isn’t surprising that credit card companies try to capitalize on old debt, but if their time has run out, you can use your knowledge of the statute of limitations to prevent them from suing you. The statute of limitations is in place to protect you as a consumer, so awareness of your state’s statutes can prevent collectors from benefiting from an already frustrating situation.

At Ovation, we like to help people stay on track with credit debt so that you never have to worry about the statute of limitations. With the right tools and knowledge you can escape debt altogether.




You Don’t Have to Take Credit for Credit Bureau Gaffes

By | Consumer Rights, Credit Repair, Credit Reports

From the time we’re old enough to reason, we’re taught to take responsibility for our mistakes. As citizens and consumers, we are forever encouraged to take responsibility for our credit rating. Basic principles of accounting, the pros and cons of credit cards, and the importance of keeping debt under control: these concepts are not foreign to us. But consumers are not solely at fault for a faulty credit report.

Giving credit where credit is due, a CBS News reporter illustrates that “79 percent of all credit reports contain some type of error,” with 25 percent of all reports containing errors significant enough that you may be denied credit! Other errors include misspelled names, inaccurate Social Security numbers, paid-off loans listed as outstanding, or omissions of credit or loan accounts that might serve to prove that you are responsible enough to manage a line of credit. The reality is that credit reporting bureaus such as Equifax, Experian and TransUnion have a measure of responsibility for your credit ratings … and their errors directly impact your monthly bills.

The same report points out that your credit rating is used to determine loan interest rates. Employers even use credit reports when deciding whether or not to give you a job! Complaints filed with the FTC detail incident after incident in which consumers’ credit reports provided details of delinquent accounts that did not exist, adversely affecting their credit rating.

Your monthly bills can be directly affected by inaccurate credit data. When a person’s credit rating is used to determine interest rate, an automobile costing $6,000 with zero down, 7 percent sales tax and a 3 percent interest rate will cost just over $186.70 per month.  The same purchase at an interest rate of 8 percent becomes $201.17 per month.  As a gentleman in Daytona Beach discovered, when you inherit someone else’s cell phone bill, your monthly payments increase while your credit rating slips.

Though we all must take responsibility for the risks we take and the mistakes we make when using credit, we should not have to pay for the mistakes of others – especially those agencies who are charged with fairly reporting our achievements as well as our blunders.

You can still take control of your finances, however, when you take the first steps to repair your credit report. At Ovation, we have tools to help you learn more about your credit report and how you can make your report the best possible reflection of you and your creditworthiness.

Who’s Spying On Your Credit?

By | Ask a Credit Expert, Consumer Rights, Credit Reports, Fair Credit Reporting Act, Your Credit

If you are not regularly monitoring your credit report, you might be surprised to learn who is making credit inquiries. Even more surprising is the decisions these people are making based on that information.

If you have filled out an application for a job, a rental property or a mobile phone, or if you need utility service, your credit report may have been reviewed as part of that application process.  When you supply your name, birth date and Social Security number on any type of application, you may be unknowingly subjecting yourself to a credit report inquiry. Insurance companies use your credit history to decide the premium you will pay, landlords may check your credit to determine if you would be a good tenant, utility companies may pull your credit report to set your payment terms, and employers may decide to hire or promote you based on your credit rating.  Government agencies, including state or local child support enforcement, also have the right to pull your credit report for license or benefit applications.

Your credit report contains private information and includes not only your name, but your address and previous addresses, telephone number, Social Security number, year and month of your birth, and your employment information. Your report may also include public record information, such as civil judgements, tax liens and bankruptcies. This is information that you may not want certain people to know. According to the Fair Credit Reporting Act, however, anyone with a “legitimate business need” can access your credit report. Each inquiry can drop your credit score from two to five points. While these inquiries stay on your credit report for two years, they will only affect your score for one year.

The good news is that you have a right to obtain a free copy of your credit report from each of the three reporting agencies each year, and you have the right to know who else is looking at it.  When you order a copy of your report, it will include information about anyone who has inquired about your credit or has requested a report. It is a good idea to regularly monitor your report, because many credit reports contain serious errors that can jeopardize your credit rating and financial well-being.

Credit inquiries are not only carried out by financial institutions when you are applying for a credit card or rate-shopping for a loan or mortgage. Many companies are using credit reports more and more often to make any number of decisions. This is all the more reason to frequently check the accuracy of your credit reports.  Otherwise, you may be denied your ideal apartment, lower insurance premiums, or even your dream job or hard-earned promotion at work.

Food for Thought: Social Security Benefits Can Be Garnished

By | Consumer Rights, Debt, Personal Finance

A garnish is often considered to be something that is visually pleasing on a dinner plate when we order food at a restaurant. A sprig of parsley with an Italian entrée, an edible flower with a rice dish, or a strawberry wedge on a slice of pie enhances the culinary experience. Whether for decoration or added flavor, a garnish in this sense is a good thing. If you have too many bills on your plate, however, a garnish is quite not as appealing.

A wage garnishment is a court order that instructs an employer to withhold a certain amount of your wages in order to repay a debt. For those of us who are seeking court assistance in the payment of a debt, or for those of us who are at risk of having wages or other monetary assets garnished, we may want to know in advance whether or not Social Security benefits are at risk of garnishment. Can creditors seek relief from the courts by garnishing social security benefits?

Ironically, the government agency that will defend you and protect your Social Security benefits from creditors will turn around and take legal action against you, garnishing those same benefits in a number of circumstances.

According to information provided by the U.S. Social Security Administration, creditors cannot garnish your Social Security benefits. For example, credit card companies, mortgage companies, or automobile loan companies cannot tap your Social Security benefits to satisfy a debt. Supplemental Security Income (SSI) benefits are likewise resistant to related garnishments. The Federal government, however, does indeed have license to garnish Social Security benefits to enforce payment of alimony or child support, to collect unpaid federal taxes, and other similar liabilities.

Social Security benefits are a resource for retired citizens, disabled individuals, and family survivors. These benefits, while resistant to legal action by creditors, are not entirely exempt from garnishment when the Federal government is involved.  Regardless of your income or those benefits you receive, care should always be used in managing your finances.

Take steps ahead of time to protect your credit rating and to protect your money and investments from the interference of the courts. Pay your bills on time; honor your financial obligations. Keep your fiscal plate clean, and do not let a garnish become something distasteful and unappealing.

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