If you owe money to your credit card company, and if you stop paying them, they can sue you for the amount owed. If that same credit card company obtains a judgment from a court, they can take that judgment and garnish your wages.
Are you considering foregoing a bankruptcy filing in favor of attempting to settle your debt? Whether you're attempting to settle debt directly with your creditors or with some third-party debt relief agency, it is important to first consider the potential tax consequences that will arise from pursuing debt settlement.
While Section 109(a) describes who can file a Chapter 13 Bankruptcy, we want to know now where can the bankruptcy be filed?
It is not possible to move from one state to another and file Chapter 13 Bankruptcy the next day. 28 U.S. Code Section 1408 states that debtor may file a bankruptcy in the bankruptcy court of the federal judicial district in which the person filing bankruptcy has his/her principal residence, place of business, or principal assets. The domicile has to be where you were domiciled the greater part of the last 6 months and so, where you have been domiciled the last 91 days.
What is the goal of filing a Chapter 7 Bankruptcy? Getting a Chapter 7 discharge. Getting a Chapter 7 discharge means the debt is wiped out, tax free, forever. Are there situations where creditors can object to you discharging a debt? You bet there is. Section 523 of the Bankruptcy Code outlines several reasons a creditor could object to you discharging a debt made with the creditor.
Minnesotans are always amazed to find out that there really is a government sponsored debt consolidation plan. Most Minnesotans are not aware of this. If you live in St Paul, Minnesota and you are suffering from overwhelming debt and you are currently in a traditional debt consolidation plan, you are wasting your time. You read this right, you are wasting your time. Why? Because the government sponsored debt consolidation plan is much better for you and your family.
The economy is tough, and many people are looking for ways to help them manage and eliminate debt. With the rising cost of living, it can be tough for many consumers to even make the minimum payments each month on credit cards, charge cards and loan payments. If you are one of these people, there are several options available to you. One of those options is combining a lot of small debts into larger debt consolidation loans. However, before you make any decisions regarding your credit and debt situation, you should know how debt consolidation loans work. Having all the facts can help you choose the right option for your personal situation and avoid any unmanageable circumstances.
You’ve heard them on the radio and seen them on TV. They make promises about eliminating your debt in no time at all, at no cost to you. All you have to do is make the phone call and your debt can be put in the past. Well this sounds great, and your first conversation may go great, too. However, debt consolidation programs like to put all of the exciting benefits and the promise of a better tomorrow at the front, so you don’t see what lives behind the curtain.
In some situations, debt consolidation may be an advisable solution. On the other hand, there are situations when debt consolidation is inadvisable and bankruptcy is the better alternative.
Life is stressful enough without overwhelming debt. When overwhelming debt is part of your life, normal life issues become amplified and much harder to handle. Creditors are breathing down your neck, your 7-year old wants to join a dance studio, gas prices keep rising and you are continually stressed because you can’t make your payments and keep everyone satisfied. They say money can’t buy happiness, but why does having no money cause so many horrible thoughts and feelings?
When you meet or discuss with a debt consolidation company they may not explain the “fine print” associated with their programs. At first glance debt consolidation programs seem appealing but before you sign the dotted line, make sure you know the fine details of the program you are signing up for. Here is a summary of details some debt consolidation companies try to gloss over to make their programs more appealing:
There are many situations in which debt consolidation loans can be used and applied. In some situations a debt consolidation loan will benefit your financial situation, and in others it will not. Determining the best solution suited for your specific situation can be tricky, and I highly recommend discussing with a legal professional or financial advisor before taking action.
Debt consolidation can be a very confusing concept. Generally speaking, debt consolidation works by combining all of your debts into one payment, often extending your repayment period, resulting in an increased total amount paid. There are four options commonly sought by those looking to get out of a difficult financial bind through debt consolidation and each works in its own way.
Debt consolidation consists of combining all of your unsecured debt payments into one. This may involve taking out a loan, entering into a debt consolidation program or Filing Chapter 13 Bankruptcy. Now, what are unsecured debt payments?
Let’s say you have $50,000 in credit card debt and your situation has gotten to the point where you can’t keep up with your payments. Something has to be done in order for you to take care of your family, get your life back in control and so on.
If you are considering a debt consolidation program – stop right there! Make sure you know all of your debt solutions before entering into an agreement. Consider a chapter 13 bankruptcy (Minnesota filers click here for state specific regulations) as an alternative to a debt consolidation program.
If being in debt isn’t stressful enough, creditors sure know how to make it worse. When you fall behind in payments, creditors will begin to bother you for the money you owe them. The further you fall behind, the more action creditors are going to take, progressively adding stress and embarrassment to your difficult financial situation. This non-stop pressure and continual reminder of your debt can begin to affect your livelihood, causing increased panic and anxiety.
If you owe money to your credit card company, and if you stop paying them, they can sue you for the...
Are you considering foregoing a bankruptcy filing in favor of attempting to settle your debt?...
While Section 109(a) describes who can file a Chapter 13 Bankruptcy, we want to know now where can...
What is the goal of filing a Chapter 7 Bankruptcy? Getting a Chapter 7 discharge. Getting a Chapter...
Minnesotans are always amazed to find out that there really is a government sponsored debt...
The economy is tough, and many people are looking for ways to help them manage and eliminate debt....
You’ve heard them on the radio and seen them on TV. They make promises about eliminating your debt...
In some situations, debt consolidation may be an advisable solution. On the other hand, there are...
Life is stressful enough without overwhelming debt. When overwhelming debt is part of your life,...
When you meet or discuss with a debt consolidation company they may not explain the “fine print”...
There are many situations in which debt consolidation loans can be used and applied. In some...
Debt consolidation can be a very confusing concept. Generally speaking, debt consolidation works by...
Debt consolidation consists of combining all of your unsecured debt payments into one. This may...
Let’s say you have $50,000 in credit card debt and your situation has gotten to the point where you...
If you are considering a debt consolidation program – stop right there! Make sure you know all of...
If being in debt isn’t stressful enough, creditors sure know how to make it worse. When you fall...
