Are you a self-confessed shopaholic who buys anything and everything that you get your shopping addicted hands on? Such thoughtless and impulsive buying will most likely result in the accumulation of a bunch of junk that will simply collect dust. Can you even remember that silk scarf you just had to have and since it was a virtual steal at 50% off you just had to buy it? Where is it now and how many times have you actually worn it? Is it still fashionable?
If you're like most people, chances are you'll have to rummage through bins and bins of collected shopping "litter" which you've accumulated through the years, just to be able to see that once precious scarf. You may still be in a state of denial by saying "Fashion goes round and round and that scarf will have its shining moment once again."
Unfortunately, many people fall into this mode of impulsive buying that they really can't afford and before they realize it they become saddled with debt. If you fall into this category, you'll soon need to learn a thing or two about debt settlement which can assist you in extracting yourself out of that self-imposed state of financial trauma and begin to start rebuilding your life bit by bit. And the time to start is now! Of course, you have to be honest with yourself, admit that you've got a serious debt problem and then humble yourself enough to seek the help you need to pull yourself out of this devastating ordeal.
First things first, a lot of people may actually think that they only have a few choices when it comes to solving their debt problems. The two most common options for those who are burdened with enormous amounts of debt are either to consider declaring bankruptcy or debt consolidation. Unfortunately, if you take the easy way out by declaring bankruptcy, it will leave an embarrassing and indelible mark on your credit report for up to 7 years, which will result in higher interest rates, less credit and if you try do qualify for a mortgage (some lenders do give loans immediately after bankruptcy) you will most likely not be able to get a loan to cover 100% of the financing you need. Normally, an 80% first mortgage and if you can get a second mortgage, it will be at much higher interest rate and probably only 10% of the loan value for a total of 90% of the loan to value and you'll have to come up with 10% down.
Clearly, everything will come with a higher price for a period of time but you'll have to weigh that with a straight debt consolidation solution in which you pay off your debt. However, in many cases you can negotiate with the collection agency and it's realistic to get 25% - 50% of the debt forgiven, if you can show that you'll continue to make monthly payments until the remainder is paid off.
Many of the debt settlement / debt consolidation companies were actually established by the credit card companies themselves. Why, you ask... because it only makes sense for the credit card companies to help you pay off your debt because they can either forgive some of the debt or reduce the interest rates, lower the monthly minimum payment requirements or some combination and get paid a portion of the money owed or receive nothing if you declare bankruptcy. What would you do if you were in their shoes? The answer is obvious. This is why a lot of people who have been saddled with debt are now being offered debt settlement. Of course, not all debt consolidation service companies are owned by credit card companies but many are.
Some groups offer debt settlement programs through arbitration. The "selling point" when it comes to these kinds of solutions is that debt settlement will actually help end your debt problems, without having to go through declaring bankruptcy, without having to pay overcharged debt consolidation program fees as well as helping you avoid getting caught in the debt consolidation trap that a lot of people have fallen victim to.
In many cases, what the organizations do that offer debt settlement services is negotiate your debt down with the collection agencies that have been given your case. I would encourage you to contact a number of companies to ensure you feel comfortable and that you are working with a quality company that doesn't over-charge you for their services.
On the other hand, if you would really like to save money, which only makes sense since you are already heavily in debt... then negotiate with the collection agency yourself. It's not difficult, rather than getting upset when you get called night after night simply tell the collection agency rep that you would like to pay off your debt but you can only do it if you can get it reduced and then ask them that you would like to get the debt you owe reduced by 50% - 60%, even 75% and ask them to see what they can do. Ask for a lot up front because as in any negotiation there's always a give and take. Believe me, they will go to work for you and your offer will be seriously considered because they only get paid when they collect and it's better to get their percentage on a smaller amount than "diddly squat" on the full amount.
Of course, you'll have to decide what route you want to take... bankruptcy versus debt settlement but shop around and realize that you do have options. The internet is full of companies offering their bankruptcy or debt settlement services, but be careful and don't let them push you around and never work with anyone you don't feel 100 percent comfortable with.
About the Author
Kevin Erickson is a contributing writer to the following websites: http://www.aneyeondebt.com/and http://www.debtmergeresources.com/.This article may be reproduced only in its entirety.
Tuesday, May 1, 2007
The Ins and Outs of Credit Card Debt Settlement
Are you a self-confessed shopaholic who buys anything and everything that you get your shopping addicted hands on? Such thoughtless and impulsive buying will most likely result in the accumulation of a bunch of junk that will simply collect dust. Can you even remember that silk scarf you just had to have and since it was a virtual steal at 50% off you just had to buy it? Where is it now and how many times have you actually worn it? Is it still fashionable?
If you're like most people, chances are you'll have to rummage through bins and bins of collected shopping "litter" which you've accumulated through the years, just to be able to see that once precious scarf. You may still be in a state of denial by saying "Fashion goes round and round and that scarf will have its shining moment once again."
Unfortunately, many people fall into this mode of impulsive buying that they really can't afford and before they realize it they become saddled with debt. If you fall into this category, you'll soon need to learn a thing or two about debt settlement which can assist you in extracting yourself out of that self-imposed state of financial trauma and begin to start rebuilding your life bit by bit. And the time to start is now! Of course, you have to be honest with yourself, admit that you've got a serious debt problem and then humble yourself enough to seek the help you need to pull yourself out of this devastating ordeal.
First things first, a lot of people may actually think that they only have a few choices when it comes to solving their debt problems. The two most common options for those who are burdened with enormous amounts of debt are either to consider declaring bankruptcy or debt consolidation. Unfortunately, if you take the easy way out by declaring bankruptcy, it will leave an embarrassing and indelible mark on your credit report for up to 7 years, which will result in higher interest rates, less credit and if you try do qualify for a mortgage (some lenders do give loans immediately after bankruptcy) you will most likely not be able to get a loan to cover 100% of the financing you need. Normally, an 80% first mortgage and if you can get a second mortgage, it will be at much higher interest rate and probably only 10% of the loan value for a total of 90% of the loan to value and you'll have to come up with 10% down.
Clearly, everything will come with a higher price for a period of time but you'll have to weigh that with a straight debt consolidation solution in which you pay off your debt. However, in many cases you can negotiate with the collection agency and it's realistic to get 25% - 50% of the debt forgiven, if you can show that you'll continue to make monthly payments until the remainder is paid off.
Many of the debt settlement / debt consolidation companies were actually established by the credit card companies themselves. Why, you ask... because it only makes sense for the credit card companies to help you pay off your debt because they can either forgive some of the debt or reduce the interest rates, lower the monthly minimum payment requirements or some combination and get paid a portion of the money owed or receive nothing if you declare bankruptcy. What would you do if you were in their shoes? The answer is obvious. This is why a lot of people who have been saddled with debt are now being offered debt settlement. Of course, not all debt consolidation service companies are owned by credit card companies but many are.
Some groups offer debt settlement programs through arbitration. The "selling point" when it comes to these kinds of solutions is that debt settlement will actually help end your debt problems, without having to go through declaring bankruptcy, without having to pay overcharged debt consolidation program fees as well as helping you avoid getting caught in the debt consolidation trap that a lot of people have fallen victim to.
In many cases, what the organizations do that offer debt settlement services is negotiate your debt down with the collection agencies that have been given your case. I would encourage you to contact a number of companies to ensure you feel comfortable and that you are working with a quality company that doesn't over-charge you for their services.
On the other hand,if you would really like to save money, which only makes sense since you are already heavily in debt... then negotiate with the collection agency yourself. It's not difficult, rather than getting upset when you get called night after night simply tell the collection agency rep that you would like to pay off your debt but you can only do it if you can get it reduced and then ask them that you would like to get the debt you owe reduced by 50% - 60%, even 75% and ask them to see what they can do. Ask for a lot up front because as in any negotiation there's always a give and take. Believe me, they will go to work for you and your offer will be seriously considered because they only get paid when they collect and it's better to get their percentage on a smaller amount than "diddly squat" on the full amount.
Of course, you'll have to decide what route you want to take... bankruptcy versus debt settlement but shop around and realize that you do have options. The internet is full of companies offering their bankruptcy or debt settlement services, but be careful and don't let them push you around and never work with anyone you don't feel 100 percent comfortable with.
About the Author
Kevin Erickson is a contributing writer to the following websites: http://www.aneyeondebt.com/and http://www.debtmergeresources.com/.This article may be reproduced only in its entirety.
If you're like most people, chances are you'll have to rummage through bins and bins of collected shopping "litter" which you've accumulated through the years, just to be able to see that once precious scarf. You may still be in a state of denial by saying "Fashion goes round and round and that scarf will have its shining moment once again."
Unfortunately, many people fall into this mode of impulsive buying that they really can't afford and before they realize it they become saddled with debt. If you fall into this category, you'll soon need to learn a thing or two about debt settlement which can assist you in extracting yourself out of that self-imposed state of financial trauma and begin to start rebuilding your life bit by bit. And the time to start is now! Of course, you have to be honest with yourself, admit that you've got a serious debt problem and then humble yourself enough to seek the help you need to pull yourself out of this devastating ordeal.
First things first, a lot of people may actually think that they only have a few choices when it comes to solving their debt problems. The two most common options for those who are burdened with enormous amounts of debt are either to consider declaring bankruptcy or debt consolidation. Unfortunately, if you take the easy way out by declaring bankruptcy, it will leave an embarrassing and indelible mark on your credit report for up to 7 years, which will result in higher interest rates, less credit and if you try do qualify for a mortgage (some lenders do give loans immediately after bankruptcy) you will most likely not be able to get a loan to cover 100% of the financing you need. Normally, an 80% first mortgage and if you can get a second mortgage, it will be at much higher interest rate and probably only 10% of the loan value for a total of 90% of the loan to value and you'll have to come up with 10% down.
Clearly, everything will come with a higher price for a period of time but you'll have to weigh that with a straight debt consolidation solution in which you pay off your debt. However, in many cases you can negotiate with the collection agency and it's realistic to get 25% - 50% of the debt forgiven, if you can show that you'll continue to make monthly payments until the remainder is paid off.
Many of the debt settlement / debt consolidation companies were actually established by the credit card companies themselves. Why, you ask... because it only makes sense for the credit card companies to help you pay off your debt because they can either forgive some of the debt or reduce the interest rates, lower the monthly minimum payment requirements or some combination and get paid a portion of the money owed or receive nothing if you declare bankruptcy. What would you do if you were in their shoes? The answer is obvious. This is why a lot of people who have been saddled with debt are now being offered debt settlement. Of course, not all debt consolidation service companies are owned by credit card companies but many are.
Some groups offer debt settlement programs through arbitration. The "selling point" when it comes to these kinds of solutions is that debt settlement will actually help end your debt problems, without having to go through declaring bankruptcy, without having to pay overcharged debt consolidation program fees as well as helping you avoid getting caught in the debt consolidation trap that a lot of people have fallen victim to.
In many cases, what the organizations do that offer debt settlement services is negotiate your debt down with the collection agencies that have been given your case. I would encourage you to contact a number of companies to ensure you feel comfortable and that you are working with a quality company that doesn't over-charge you for their services.
On the other hand,if you would really like to save money, which only makes sense since you are already heavily in debt... then negotiate with the collection agency yourself. It's not difficult, rather than getting upset when you get called night after night simply tell the collection agency rep that you would like to pay off your debt but you can only do it if you can get it reduced and then ask them that you would like to get the debt you owe reduced by 50% - 60%, even 75% and ask them to see what they can do. Ask for a lot up front because as in any negotiation there's always a give and take. Believe me, they will go to work for you and your offer will be seriously considered because they only get paid when they collect and it's better to get their percentage on a smaller amount than "diddly squat" on the full amount.
Of course, you'll have to decide what route you want to take... bankruptcy versus debt settlement but shop around and realize that you do have options. The internet is full of companies offering their bankruptcy or debt settlement services, but be careful and don't let them push you around and never work with anyone you don't feel 100 percent comfortable with.
About the Author
Kevin Erickson is a contributing writer to the following websites: http://www.aneyeondebt.com/and http://www.debtmergeresources.com/.This article may be reproduced only in its entirety.
Saturday, April 28, 2007
Payday Loans Or Cash Advance Loans - Useful After A Bankruptcy
Payday loans, also known as cash advance, are a useful tool after bankruptcy. By keeping current on your bills through a payday loan, you can rebuild your credit history. The key is to only use these cash advances for emergencies.
Using Payday Loans
Faced with a financial emergency, it is better to apply for a cash advance than skip a bill payment for two reasons. First, after bankruptcy the best thing you can do to rebuild credit is to pay your bills on time. If you are 30 days past due or longer, it will take three years for it to be removed from your credit history.
The second reason to use cash advances is to save money on late fees. Often a $30 late fee on an account will be more expensive than the financing fee of a payday loan. The same is often true with loan payments and bank charges.
Find The Right Payday Lender
Shop payday lenders just like you would shop for any type of service. Compare fees and interest rates, as well as, repayment options and customer service.
Consider looking online for a payday lender. Many of these online lenders offer instant approval with no faxing of paperwork required. It is also much faster to compare rates and fees of online.
Avoid High Costs
Cash advances are meant to be a short loan until payday. The high costs of payday loans come when people put off repaying these loans and the interest fees add up. Plan to pay back your cash advance on your next payday.
But if you can’t pay your loan back, talk with your payday lender. You can pay just the interest charge for that period or make only a partial principal payment. Above all, you don’t want to skip a payment, which will add up fees quickly.
Plan For Future Emergencies
Once you have gotten through your current financial emergency with a payday loan, start an emergency savings fund. By saving as little as $10 a week, you can have $520 in an account after a year’s time.
Also consider applying for a credit card for emergencies after establishing six months of good credit history.
About the Author
Carrie Reeder is the owner http://www.abcloanguide.com,an informational website about various types of loans. To view our recommended sources for payday or cash advance lenders online, visit this page: http://www.abcloanguide.com/paydayloans.shtml
Using Payday Loans
Faced with a financial emergency, it is better to apply for a cash advance than skip a bill payment for two reasons. First, after bankruptcy the best thing you can do to rebuild credit is to pay your bills on time. If you are 30 days past due or longer, it will take three years for it to be removed from your credit history.
The second reason to use cash advances is to save money on late fees. Often a $30 late fee on an account will be more expensive than the financing fee of a payday loan. The same is often true with loan payments and bank charges.
Find The Right Payday Lender
Shop payday lenders just like you would shop for any type of service. Compare fees and interest rates, as well as, repayment options and customer service.
Consider looking online for a payday lender. Many of these online lenders offer instant approval with no faxing of paperwork required. It is also much faster to compare rates and fees of online.
Avoid High Costs
Cash advances are meant to be a short loan until payday. The high costs of payday loans come when people put off repaying these loans and the interest fees add up. Plan to pay back your cash advance on your next payday.
But if you can’t pay your loan back, talk with your payday lender. You can pay just the interest charge for that period or make only a partial principal payment. Above all, you don’t want to skip a payment, which will add up fees quickly.
Plan For Future Emergencies
Once you have gotten through your current financial emergency with a payday loan, start an emergency savings fund. By saving as little as $10 a week, you can have $520 in an account after a year’s time.
Also consider applying for a credit card for emergencies after establishing six months of good credit history.
About the Author
Carrie Reeder is the owner http://www.abcloanguide.com,an informational website about various types of loans. To view our recommended sources for payday or cash advance lenders online, visit this page: http://www.abcloanguide.com/paydayloans.shtml
Options For Getting Out of Debt
Being burdened with a lot of debts simultaneously maturing can be a harrowing experience. Just thinking about the many sleepless nights spent in absolute anxiety is enough to cast fear upon anyone’s soul. Juggling our finances is hard enough as it is. To do so with the specter of gloom brought about by due and demandable debts could really, and literally, drive us crazy.
There are many factors that would contribute to such a terrifying state. Financial management, without a doubt, is one of them. Financial management does not only entail a wanton neglect of a budget plan and an uncontrollably vicious spending streak. Often, it is caused by lack of proper education in the in sound financial planning.
When we find ourselves in such a financial rut, we try to look for available options that would help us get out of the hole we have dug for ourselves. However, options drastically reduce in number the deeper we get buried in debts.
But this shouldn’t be taken to mean that we don’t have any options to resort to. There are some of them that are still available, and they deserve a closer look if we want to get out of our financial troubles.
There are still a number of options available for you. Let’s take a look at them.
Debt Consolidation
You could decide to merge your existing loans into one debt, though not directly. Through debt consolidation loans, the creditor would pay off your subsisting debt. You will then have just one debt to pay, that of your new creditor.
Debt consolidation is often resorted to for the following reasons:
It would extend the maturity date of your loans under the new consolidated loan.
You would pay a lower interest rate under one loan.
It would be easier to manage a single loan than having to pay off multiple ones every month.
Debt consolidation would not necessarily solve your debts per se, but at least, it would buy you the time that you would need to muster enough resources to settle your obligations. It is still a good option, especially when several debts become due and demandable within the same period.
Securing A Second Loan
Not as direct an option as debt consolidation, you could always apply for a new loan to pay off an existing one. This would be a great approach, not only in prolonging the maturity date of your obligation, but also in paying a lower interest in the event that the new loan has a lower rate than the previous one.
Second loans have always saved a lot of debtors from almost certain disaster. Most loans do not ask for the purpose of your desired borrowings anyway. By applying for a new loan, you’d be able to delay eventual payment, and you’d be able to answer the more pressing needs of your life.
Filing For Bankruptcy
Considered as the court of last resort, you could always file for bankruptcy. You would need to have exhausted all available remedies though, and you must prove to the court that your application is done in good will, meaning you have no intention whatsoever to defraud your creditors. You would also have to establish through preponderance of evidence that you cannot fulfill all your obligations once they have become due and demandable.
Your assets would thereafter be placed under the case of a court-appointed trustee. The said trustee would call all your creditors to an assembly, called a 341 meeting, where your assets would be liquidated and distributed among them, in proportion to their respective claims. The portions of the debts that cannot be fulfilled by your assets would be written as losses for your creditors. After this, your debts would be considered dissolved.
Though declaring bankruptcy has its benefits, it also has its share of disadvantages. Among them is the negative mark it would leave on your credit record, which would adversely affect future loan applications as well as when you’re applying for a job.
Also, you must be reminded that your line of credit may be suspended for at least 2 years. It would take quite some time before you could recover from a state of bankruptcy.
UPDATE: Congress has passed a new Bankruptcy Protection Law that now makes it tougher to file and declare bankruptcy. Make sure you understand how it will affect YOU.
Go to www.1debtfreedom.com for your free no-obligation quote.
About the Author
Talbert Williams offers debt consolidation, debt reduction, credit card debt referrals and advice. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com
There are many factors that would contribute to such a terrifying state. Financial management, without a doubt, is one of them. Financial management does not only entail a wanton neglect of a budget plan and an uncontrollably vicious spending streak. Often, it is caused by lack of proper education in the in sound financial planning.
When we find ourselves in such a financial rut, we try to look for available options that would help us get out of the hole we have dug for ourselves. However, options drastically reduce in number the deeper we get buried in debts.
But this shouldn’t be taken to mean that we don’t have any options to resort to. There are some of them that are still available, and they deserve a closer look if we want to get out of our financial troubles.
There are still a number of options available for you. Let’s take a look at them.
Debt Consolidation
You could decide to merge your existing loans into one debt, though not directly. Through debt consolidation loans, the creditor would pay off your subsisting debt. You will then have just one debt to pay, that of your new creditor.
Debt consolidation is often resorted to for the following reasons:
It would extend the maturity date of your loans under the new consolidated loan.
You would pay a lower interest rate under one loan.
It would be easier to manage a single loan than having to pay off multiple ones every month.
Debt consolidation would not necessarily solve your debts per se, but at least, it would buy you the time that you would need to muster enough resources to settle your obligations. It is still a good option, especially when several debts become due and demandable within the same period.
Securing A Second Loan
Not as direct an option as debt consolidation, you could always apply for a new loan to pay off an existing one. This would be a great approach, not only in prolonging the maturity date of your obligation, but also in paying a lower interest in the event that the new loan has a lower rate than the previous one.
Second loans have always saved a lot of debtors from almost certain disaster. Most loans do not ask for the purpose of your desired borrowings anyway. By applying for a new loan, you’d be able to delay eventual payment, and you’d be able to answer the more pressing needs of your life.
Filing For Bankruptcy
Considered as the court of last resort, you could always file for bankruptcy. You would need to have exhausted all available remedies though, and you must prove to the court that your application is done in good will, meaning you have no intention whatsoever to defraud your creditors. You would also have to establish through preponderance of evidence that you cannot fulfill all your obligations once they have become due and demandable.
Your assets would thereafter be placed under the case of a court-appointed trustee. The said trustee would call all your creditors to an assembly, called a 341 meeting, where your assets would be liquidated and distributed among them, in proportion to their respective claims. The portions of the debts that cannot be fulfilled by your assets would be written as losses for your creditors. After this, your debts would be considered dissolved.
Though declaring bankruptcy has its benefits, it also has its share of disadvantages. Among them is the negative mark it would leave on your credit record, which would adversely affect future loan applications as well as when you’re applying for a job.
Also, you must be reminded that your line of credit may be suspended for at least 2 years. It would take quite some time before you could recover from a state of bankruptcy.
UPDATE: Congress has passed a new Bankruptcy Protection Law that now makes it tougher to file and declare bankruptcy. Make sure you understand how it will affect YOU.
Go to www.1debtfreedom.com for your free no-obligation quote.
About the Author
Talbert Williams offers debt consolidation, debt reduction, credit card debt referrals and advice. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com
Tax Cuts-What Tax Cuts?
Many of the jobs in President Bush's "recovery" are low-wage, low-benefit service and retail jobs. The overall growth in jobs masks a harsher reality for families trying to maintain or build a middle class standard of living.
Key among them: debt coupled with paycheck paralysis.
Most people coming out of college with or without a degree are starting life off with about $20,000 in debt trying to get a degree.
Then they try to support themselves on low wages after getting out of school.
A generation ago finishing high school was what was needed to get a job and to have a reasonable amount of security.
Now what is needed is a university degree and not just any degree, look at all people working in low class jobs with an arts degree.
In the last 30 years compensation for somebody with a university degree has actually decreased when adjusted for inflation.
Personal bankruptcy filings nationwide last year exceeded 2 million, the highest annual level on record.
There were significant increases in consumer bankruptcy filings in every region. The total of 2,043,535 was up 32 percent over the 1,552,967 filed in 2004. That translates to one in every 53 households filing bankruptcy petitions.
So are these 2 million people Scofflaws?
Credit counselors say the debtors coming to their offices can’t afford to pay basic living expenses or make even minimal payments toward their debts.
Corporate profits have reached record highs.
People are working longer for the same or a lesser amount of money.
During the period from November 2003 to March 2004 - when job growth was increasing - average hourly real wages actually fell by 1 percent.
Companies are reducing health care benefits and are declaring bankruptcy to get rid of pension liabilities to their employees.
Yes, but there are Tax Cuts.
Tax Cuts have to be paid for by somebody at some point in time.
If the tax cuts were financed largely or entirely through spending cuts or: if the tax cuts were financed through a combination of spending cuts and progressive tax increases this is what is projected by experts:
The net result seems to be net tax cuts for about 20-25 percent of households, financed by net tax increases or benefit reductions for the remaining 75-80 percent of the population.
So 75% to 80 % of Taxpayers are going to be worse off with tax cuts.
The "losers" are going to be low- and middle-income wage earners.
The trade deficit for last year is estimated to have swollen to another record high, above $700 billion, increasing America's indebtedness to foreigners.
At some point in time these foreigners are going to want their money back.
Then what?
About the Author
J Carter is worried about the economy.
http://www.tax-attorney.biz
http://www.credit-score-now.info
http://www.bankruptcy-credit-cards-debthelpnet.info
Key among them: debt coupled with paycheck paralysis.
Most people coming out of college with or without a degree are starting life off with about $20,000 in debt trying to get a degree.
Then they try to support themselves on low wages after getting out of school.
A generation ago finishing high school was what was needed to get a job and to have a reasonable amount of security.
Now what is needed is a university degree and not just any degree, look at all people working in low class jobs with an arts degree.
In the last 30 years compensation for somebody with a university degree has actually decreased when adjusted for inflation.
Personal bankruptcy filings nationwide last year exceeded 2 million, the highest annual level on record.
There were significant increases in consumer bankruptcy filings in every region. The total of 2,043,535 was up 32 percent over the 1,552,967 filed in 2004. That translates to one in every 53 households filing bankruptcy petitions.
So are these 2 million people Scofflaws?
Credit counselors say the debtors coming to their offices can’t afford to pay basic living expenses or make even minimal payments toward their debts.
Corporate profits have reached record highs.
People are working longer for the same or a lesser amount of money.
During the period from November 2003 to March 2004 - when job growth was increasing - average hourly real wages actually fell by 1 percent.
Companies are reducing health care benefits and are declaring bankruptcy to get rid of pension liabilities to their employees.
Yes, but there are Tax Cuts.
Tax Cuts have to be paid for by somebody at some point in time.
If the tax cuts were financed largely or entirely through spending cuts or: if the tax cuts were financed through a combination of spending cuts and progressive tax increases this is what is projected by experts:
The net result seems to be net tax cuts for about 20-25 percent of households, financed by net tax increases or benefit reductions for the remaining 75-80 percent of the population.
So 75% to 80 % of Taxpayers are going to be worse off with tax cuts.
The "losers" are going to be low- and middle-income wage earners.
The trade deficit for last year is estimated to have swollen to another record high, above $700 billion, increasing America's indebtedness to foreigners.
At some point in time these foreigners are going to want their money back.
Then what?
About the Author
J Carter is worried about the economy.
http://www.tax-attorney.biz
http://www.credit-score-now.info
http://www.bankruptcy-credit-cards-debthelpnet.info
Friday, April 27, 2007
Taxes and Bankruptcy: The Nuts and Bolts
The filing and subsequent discharge of either a Chapter 7 or a Chapter 13 bankruptcy may eliminate some types of personal income tax liability. There are, however, certain rigid restrictions which must be met in order to completely eliminate personal income tax liability through bankruptcy.
Some personal income taxes may be eliminated through the filing and subsequent discharge of a Chapter 7 bankruptcy. The following requirements must be met for the personal income tax liability to be eliminated in a Chapter 7:
* The tax return must have been filed on time
* The filing should not be fraudulent
* The tax return must have been filed over three years ago as of the bankruptcy filing date (e.g. IRS debts for the last three years generally, would not be dischargeable)
* Alternatively, in some cases, if the tax return was filed late, was not fraudulent and was filed over two years ago as of the date of the bankruptcy filing, the tax debt may be deemed dischargeable. For example, if you filed your 1986 tax returns in 1990, and in 1994 filed a Chapter 7 Bankruptcy, this tax debt would be dischargeable as long as it was not related to a fraudulent filing and the tax debt was assessed by the IRS over 240 days before the bankruptcy filing.
Even if all of the above requirements are met, personal income taxes can still sometimes be non-dischargeable in a Chapter 7 bankruptcy. This occurs when the IRS has placed a tax lien on the debtor's property. In this case, the tax liability must be paid in full, but the IRS may be forced to accept a payment plan or substantially eliminate penalties through the filing of a Chapter 13 bankruptcy.
In a Chapter 13 bankruptcy, the debtor makes payments to a bankruptcy trustee and the bankruptcy trustee in turn distributes a percentage of the payment to the creditors. A Chapter 13 plan is filed with the court which determines the amount distributed to each creditor by the trustee. A bankruptcy judge can force the IRS to accept extended payments on personal income tax liability through a Chapter 13 plan. This type of bankruptcy works well when the IRS has a tax lien on personal property and the debtor has enough income to pay back the IRS over a three to five year period. Tax penalties may be discharged in a Chapter 13 bankruptcy because they are lumped in with all the other unsecured creditors of the debtor, such as credit cards. These are generally only paid back through the bankruptcy at 10% or ten cents on the dollar.
Filing either a Chapter 7 or a Chapter 13 bankruptcy may be a useful tool for debtors to eliminate tax liability.
http://www.legalhelpers.com/legal_helpers/brc_articles_taxes_bankruptcy.html
Some personal income taxes may be eliminated through the filing and subsequent discharge of a Chapter 7 bankruptcy. The following requirements must be met for the personal income tax liability to be eliminated in a Chapter 7:
* The tax return must have been filed on time
* The filing should not be fraudulent
* The tax return must have been filed over three years ago as of the bankruptcy filing date (e.g. IRS debts for the last three years generally, would not be dischargeable)
* Alternatively, in some cases, if the tax return was filed late, was not fraudulent and was filed over two years ago as of the date of the bankruptcy filing, the tax debt may be deemed dischargeable. For example, if you filed your 1986 tax returns in 1990, and in 1994 filed a Chapter 7 Bankruptcy, this tax debt would be dischargeable as long as it was not related to a fraudulent filing and the tax debt was assessed by the IRS over 240 days before the bankruptcy filing.
Even if all of the above requirements are met, personal income taxes can still sometimes be non-dischargeable in a Chapter 7 bankruptcy. This occurs when the IRS has placed a tax lien on the debtor's property. In this case, the tax liability must be paid in full, but the IRS may be forced to accept a payment plan or substantially eliminate penalties through the filing of a Chapter 13 bankruptcy.
In a Chapter 13 bankruptcy, the debtor makes payments to a bankruptcy trustee and the bankruptcy trustee in turn distributes a percentage of the payment to the creditors. A Chapter 13 plan is filed with the court which determines the amount distributed to each creditor by the trustee. A bankruptcy judge can force the IRS to accept extended payments on personal income tax liability through a Chapter 13 plan. This type of bankruptcy works well when the IRS has a tax lien on personal property and the debtor has enough income to pay back the IRS over a three to five year period. Tax penalties may be discharged in a Chapter 13 bankruptcy because they are lumped in with all the other unsecured creditors of the debtor, such as credit cards. These are generally only paid back through the bankruptcy at 10% or ten cents on the dollar.
Filing either a Chapter 7 or a Chapter 13 bankruptcy may be a useful tool for debtors to eliminate tax liability.
http://www.legalhelpers.com/legal_helpers/brc_articles_taxes_bankruptcy.html
The Fair Debt Collections Practices Act
If you currently owe money to a creditor, you may be getting calls from third-party debt collection agencies. However, you may be unaware that there is a law that regulates how these collection agencies may operate. The Fair Debt Collections Practices Act, or FDCPA, sets up rules for everything from how often a collection agency may contact you to what the collection agency representative may say to you. If a collection agency violates these rules, you could sue them for these violations and be rewarded a cash settlement. Here is a brief list of FDCPA rules.
I. What is the Fair Debt Collections Practices Act (FDCPA)?
a. The FDCPA is the federal law that governs the way third party debt collectors operate.
b. The FDCPA only governs third party debt collectors. This means that only collection agencies and law firms that collect debt are governed by this law and NOT the original creditor such as Chase, MBNA, and Discover etc.
c. Many states have their own laws that are similar to the FDCPA.
II. What is considered a violation? (This is just a short list of the major violations and is not intended to be exhaustive)
a. Threat of a lawsuit when there is no actual intent to sue at the time the threat is made.
i. There is case law that states that if the balance is so low and a lawsuit is not feasible then you can assume there is no intent to sue. Generally, this occurs when the debt is less than $250.
ii. Also, if you are dealing with an out of state collection agency, generally you can assume that they do not have anyone licensed to practice law in your state. Therefore they can not legally file suit at the time the threat is made.
b. Threats to take an action that cannot legally be taken.
i. Example: Threats to garnish a debtor's wages when the debtor lives in a state that does not allow wage garnishment.
ii. Example: Threats to seize a house or car when the debtor lives in a homestead state.
iii. Example: Threats to have debtor arrested for the debt.
c. Third party disclosure.
i. The only people to whom a debt collector can disclose the fact that the debtor owes money is the debtor, their spouse or their attorney.
ii. It is also a violation to leave a message on a voicemail or answering machine disclosing the fact that a debt is owed.
d. False representation or implication of attorney involvement.
e. Communication with a debtor after the collection agency has reason to believe that the debtor is represented by an attorney.
f. Communication with a debtor at their place of employment after the collection agency has reason to believe that such calls are not permitted.
g. Communication with a debtor before 8am and/or after 9pm.
h. Abuse on the phone, calling the debtor names, calling the debtor a liar, calling multiple times in a day (5 or more without the debtors consent) or just being generally harassing.
III. What type of recovery can you expect?
a. A typical settlement is between $1000 and $5000 depending on the violation.
b. If the debtor has any actual damages then this will increase the settlement.
c. There is a 1 year statute of limitations on these types of cases. This means that if you have a claim against a collection agency, you must file your lawsuit within one year from the date the violation occurred.
more on Fair Debt Collection Practices Act...
Federal Trade Commission
Give us a call at 888.743.5787 or fill out our free legal evaluation form.
http://www.legalhelpers.com/legal_helpers/brc_articles_fair_debt_collection.html
I. What is the Fair Debt Collections Practices Act (FDCPA)?
a. The FDCPA is the federal law that governs the way third party debt collectors operate.
b. The FDCPA only governs third party debt collectors. This means that only collection agencies and law firms that collect debt are governed by this law and NOT the original creditor such as Chase, MBNA, and Discover etc.
c. Many states have their own laws that are similar to the FDCPA.
II. What is considered a violation? (This is just a short list of the major violations and is not intended to be exhaustive)
a. Threat of a lawsuit when there is no actual intent to sue at the time the threat is made.
i. There is case law that states that if the balance is so low and a lawsuit is not feasible then you can assume there is no intent to sue. Generally, this occurs when the debt is less than $250.
ii. Also, if you are dealing with an out of state collection agency, generally you can assume that they do not have anyone licensed to practice law in your state. Therefore they can not legally file suit at the time the threat is made.
b. Threats to take an action that cannot legally be taken.
i. Example: Threats to garnish a debtor's wages when the debtor lives in a state that does not allow wage garnishment.
ii. Example: Threats to seize a house or car when the debtor lives in a homestead state.
iii. Example: Threats to have debtor arrested for the debt.
c. Third party disclosure.
i. The only people to whom a debt collector can disclose the fact that the debtor owes money is the debtor, their spouse or their attorney.
ii. It is also a violation to leave a message on a voicemail or answering machine disclosing the fact that a debt is owed.
d. False representation or implication of attorney involvement.
e. Communication with a debtor after the collection agency has reason to believe that the debtor is represented by an attorney.
f. Communication with a debtor at their place of employment after the collection agency has reason to believe that such calls are not permitted.
g. Communication with a debtor before 8am and/or after 9pm.
h. Abuse on the phone, calling the debtor names, calling the debtor a liar, calling multiple times in a day (5 or more without the debtors consent) or just being generally harassing.
III. What type of recovery can you expect?
a. A typical settlement is between $1000 and $5000 depending on the violation.
b. If the debtor has any actual damages then this will increase the settlement.
c. There is a 1 year statute of limitations on these types of cases. This means that if you have a claim against a collection agency, you must file your lawsuit within one year from the date the violation occurred.
more on Fair Debt Collection Practices Act...
Federal Trade Commission
Give us a call at 888.743.5787 or fill out our free legal evaluation form.
http://www.legalhelpers.com/legal_helpers/brc_articles_fair_debt_collection.html
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