Is Tax Debt Holding You Down?

Do You Owe Tax Debt?

Are You Responsible for Penalties from Late Filings?

Do You Have Tax Levies & Liens or a Wage Garnishment?

We know how intimidating and stressful tax debt can be. Which is why THD Credit Consulting has teamed up with a nationally recognized tax relief company that will offer you a Free Consultation!

They have helped thousands of people lower stress, lower tax debt and will provide guidance and expertise within the government’s continually changing tax laws.   

If you are interested in finding out more about this company and would like a free consultation from them, email me at and I will make the introduction. 

We know IRS tax debt can be confusing. That’s why our partners are here to help!

-Erik Kaplan

Understanding Your Rights: Debt Collection

If your bank or lender thinks you are falling behind on payments, you may be receiving calls from a debt collector. These persistent calls can make a challenging financial situation even more stressful. 

Understanding your debt collection rights is the first step in gaining control when you are on the receiving end of these calls.

Who is a Debt Collector?

A collector might be an individual, an attorney or a company, who typically receives a payment from your creditor for collecting on your overdue payments. This third party collector collects debts owed to your creditor.

What are Your Debt Collection Rights?

  • Debt collectors may not call you numerous times a day about an unpaid debt. This is considered a form of harassment by the Federal Trade Commission (FTC)
  • A debt collector may not use threats or profane language.
  • Debt collector must send a written statement outlining the specifics of your debt in collections.
  • A debt collector must cease contact with if you send a letter requesting that they do so. If you believe you do not owe the money, state this in your letter. Be aware that a legitimate debt will not go away simply because the collection calls stop.

What is the Statute of Limitations on a Debt?

Every state has a statute of limitations that limits how long a creditor or debt collector can successfully collect a debt. Typically, the statute of limitations starts when you miss your first payment with the original creditor, not when the account was placed for collection.

If a debt collector tries to sue you after this time period has expired, you can raise the SOL as a defense against the lawsuit. 

Can you Sue a Debt Collector? 

Yes, debt collectors can be liable for trying to collect old debts.  In 2011, in the case of Gonzales v. Arrow Fin. Servs., LLC, a $225,500 judgment was upheld against a debt collector who sent collection letters implying that payment would affect a consumer’s credit report.  However, the debts were more than 7 years old, which by law cannot be reported on a credit report. 

Additionally, a debt collector violates the Fair Debt Collection Practices Act by threatening to sue on a consumer debt after the statute of limitations has run and bars the suit.  

Accounts in collections will affect your credit, which will impact any future loans or lines of credit you attempt to get.  If you need help settling debts and putting a stop to harassing phone calls, give me a call or email me today.

-Erik Kaplan

Coming Soon!

Tax Liens and Civil Judgments: What is changing and how it affects your credit report.

On July 1, 2017, the three national credit bureaus are going to stop collecting and reporting substantial amounts of civil judgment and tax lien information.  

In fact, the credit reporting agencies will remove this data from reports if the information does not provide complete details on consumers i.e. person’s name, address, Social Security number, or date of birth.

What are tax liens and civil judgments? 

Tax liens are levied against properties when the owner is delinquent on payment of taxes. Civil judgments are ordered by courts in legal disputes, typically involving monetary damages – debts owed by the losing party. Tax liens and civil judgments negatively impacts your credit scores and remain on credit files for extended periods.

How this change will affect you?

A study by credit scoring developer VantageScore Solutions which was created by the three credit bureaus, estimated that 8 percent of consumers would see an average score increase of 10 points on its most widely used scoring model if all civil judgments and tax liens were removed from credit reports. While 8% and 10 points may sound small, in the mortgage business they equate to significant numbers for applicants.

When this information appears on credit reports, it can affect your ability to obtain credit, loans or receiving consideration for employment. This change is a step in the right direction of minimizing the impact of non-loan related items on your credit score.

THD Credit can help!

If you have tax liens or civil judgments appearing on your credit report, give me a call or email me.  We can check out your options for getting them removed sooner.

-Erik Kaplan

Coming Soon!

What is a charged off account and how does it affect my credit?

We are frequently asked about charged off accounts and how it affects credit scores. Here is what you need to know…
What is a charge off?
When a creditor notifies credit bureaus that it has charged off a debt, it means the creditor has given up on trying to collect an unpaid debt.
This would happen when someone becomes severely delinquent (typically about six months without payment) and the creditor writes off the debt as a loss in their own accounting books. Since it is unlikely it will be paid in the near future, it can’t be carried on the books as a current asset, therefore the debt is charged off.
This however does not mean you are no longer obligated to pay the amount owed.  As long as the charge-off remains unpaid, the creditor can continue attempts to collect on the account and that may include suing you for what you owe.
How does a charge off affect your credit score?
A charge off is a negative mark on your credit and one of the worst items you can have on your credit report.
Here’s why:
  • One Charge-off account can take up to 150 points off an excellent credit score. The higher your score was to start with, the greater the damage will be.
  • Once a charge-off is on your credit report, it will remain there for seven years from the date it was charged off.
  • Future creditors and lenders may deny any future credit card and loan applications, if they see a charge-off on your credit report.
It is definitely in your best interest to remove charge-offs from your credit report and with some effort we can reduce the negative effects of this type of entry.

Call or email us today if you have questions.

Erik Kaplan
THD Credit Consulting
(800) 822-7120
Send an email to to submit your questions.

Coming Soon!

What happens AFTER you file for bankruptcy?

Keeping track of your credit is a crucial step in rebuilding your credit profile, especially after a bankruptcy.  Let’s take a closer look at what happens, after the dust has settled.

Q:  What happens AFTER you file for bankruptcy?

THD Expert:  When you file for bankruptcy, the law says that you must list all of your debts, even if you plan on continuing to pay them. You pick and chose what debts you want to continue paying- such as the house if you want to live there or your car if you need it to get to work.  But you don’t pick and chose what debts are covered.  When a creditor is notified about your bankruptcy, they then report to the credit bureaus that a particular loan was “included in bankruptcy.” At that point, creditors stop reporting the payments you continue to make, such as for a mortgage or car payment. This explains why payments don’t show up on credit reports.

Q:  So why is the information on your credit report wrong?

THD Expert:  If the credit bureaus worked for you and me, rather than the creditors, it would probably look more like this: The credit bureaus would report your house payments as long as you are current, but they come off if you get behind. Unfortunately, we don’t make up the rules. 

Q:  How can you make credit bureaus report your payments?

THD Expert:  Start off by requesting a payment history from your lenders (such as the mortgage company or car finance company), and use it to dispute the incorrect entries. Lenders are required by law to give you a payment history once per year if you request it.  Next, take this payment history and use it to dispute the missing payments on the loan with each of the 3 credit reporting agencies (Equifax, Experian  and TransUnion).

Unfortunately, you may have to do this every year as the lender may not start reporting your payments even after you have successfully disputed it.

Now that you know why payments are not showing up after filing for bankruptcy and what you can do about, you can take steps to fix it. 

If you’re need help, or have additional questions give me a call or email me today.

Erik Kaplan
CEO, THD Credit Consulting
Phone: (800) 822-7120

Do you have questions you would like to submit to the THD Credit Experts?  Email your question to:

Coming Soon!