Posted on September 22, 2009 at 10:02 pm What happens in a debt default and what constitutes to a loan getting defaulted?

Posted on September 23, 2009 at 12:27 am A debt default can mean two things:1. The consumer has not been able to make the scheduled payments on their account. This is referred to as a "debt service default."2. The consumer has violated certain terms or stipulations in the original agreement with the creditor, and this is called a "technical default."

Posted on September 23, 2009 at 12:57 am Debt defaults typically happen in repossession cases. As mentioned above it is more typical for a loan to go on default if the consumer failed to make payments. In fact even being late just for one day on a payment already constitutes as a default. However, failure to comply with the provisions of the original contract can also enable the loan to go on default.Here are some reasons why a debt default can occur:1. The collateral was sold.2. The item was damaged, stolen, or its value has significantly decreased.3. The insurance for the item had lapsed, or it had not been properly taken care of. Some lenders include as a requirement collision and comprehensive insurance for automobiles. Another option would be purchasing credit life or credit disability insurance.

Posted on September 23, 2009 at 2:15 am A debt default can also happen if you reach the state of insolvency, which means that you are totally unable to pay for all their debts. Being deemed as insolvent is up to the creditor's discretion.

Posted on September 23, 2009 at 2:36 am Also a debt default can happen you disallow the creditor to examine or double-check the item. Another instance of a default happens when there is reason for the lender to believe that the borrower's ability to make payments on the loan is doubtful.

Posted on September 23, 2009 at 11:59 pm Is there any way that the debt default can be cured or at least be brought back to current status?

Posted on September 24, 2009 at 2:05 am In the case of a debt default in a repossession case, your creditor should inform you that you have the right to cure the loan. You are given a limited number of time in order to do so. When this happens, you'll have the opportunity for the debt to be repossessed. A consumer is usually given a few weeks to come up with enough funds to pay off all the missed payments and late charges on the balance.Take note that "the right to cure" does not apply in all states. You need to find out if this is applicable in your area.

Posted on September 25, 2009 at 2:22 am How can I remove a debt default from my credit?

Posted on September 25, 2009 at 2:44 am A debt default can only be removed from your credit only through the passage of time. These notations typically stay on your credit file for seven years. Even if you hire a credit repair agency to do this, they're only authorized to take out the incorrect info here. Negative but accurate information on your report will stay.

Posted on September 28, 2009 at 5:58 am What can I do then to get the debt default removed from my credit?