Before taking a serious step toward filing bankruptcy, you may want to take a look at some bankruptcy alternatives. There are undoubtedly some difficult questions to be answered when a person is carrying a large amount of debt. It is only reasonable to seek some kind of relief to have better control over your finances again.
There are different options available for a person who is trying to find a bankruptcy alternative. There are, for example, debt settlement programs where a person can get help to manage their debt. Most debt settlement programs can help you to get debt free in three years, and some even less depending on your amount of debt. Since they are non-profit organizations, they can get a much lower interest rate for your credit card debts, which allows you to be able to pay them off much faster this way. There are many different debt settlement programs available and they have become increasingly popular.
Another bankruptcy alternative may be a loan consolidation. When taking out a consolidation loan, you are borrowing against your home equity or some kind of capital asset of value that you own. Depending on your personal situation, this may be your only option. For example, if you lost your job, you have experienced the death of a loved one, you went through a divorce, or you became disabled, this may be the only viable bankruptcy alternative for you.
On the other hand, if you continue to have the same household income and you are able to pay your monthly bills on time, you may not look at getting a loan consolidation. Remember, taking out a consolidation loan only makes your total monthly payments higher, and it may tempt you to keep spending more money again since you have paid off your high interest credit cards. You may find yourself in the same situation and worse. This is a real temptation with a debt consolidation loan that many people find it hard to resist.
A bankruptcy alternative is more likely the better choice when it comes to taking care of incurred debts. You need to know the pros and the cons of the various options available to you in order to find the best way out of debt. You need to have a clear picture of your personal situation and your personal spending habits. And if your personal spending habits do not align with your income level, you will undoubtedly need to change your personal spending habits.
With a debt settlement program, you can get rid of your credit card debt within only a couple of years. With a consolidation loan, you are working to get better control over your finances. These alternatives are better than having to file bankruptcy with the negative long term effects that bankruptcy offer. Filing bankruptcy will be recorded for ten years in your credit report and will adversely affect your credit rating and the opportunity for getting another loan when needed.
Remember, filing bankruptcy should be considered as your very last option, and only an option that you use after you have determined that you do not have a viable bankruptcy alternative. Sometimes bankruptcy is your best option, but often the alternatives provide a better solution for your financial problem.
For more insights and additional information about Bankruptcy Alternatives and a free consultation with a bankruptcy lawyer local to you, please visit our web site at http://www.bankruptcy-data.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
Saturday, August 4, 2007
5 Types Of Bankruptcy Chapters
Currently bankruptcy has become more common and people are filing every minute. With the economy and job situation the way it is many are finding themselves in need of debt consolidation or bankruptcy. The types of bankruptcy talk about here are Chapters 7, 12, 13, 9 and 11. Knowing what each chapter is and what it means to you is very important in any situation.
Chapters 13 and 7 are meant for individuals. Chapter 9 pertains to towns and cities. Chapter 12 pertains to fishing and farming family businesses while chapter 11 is used by commercial businesses and is also known as reorganization of a business.
Chapter 7 is one of the types of bankruptcy that consists of the debtor selling most of his or her non-exempt assets to pay back creditors. You would have to check federal laws to find out what is non-exempt and what is not. The reason for filing a chapter 7 is to receive a discharge on your present debts. This is only granted if you follow the proper conduct of the bankruptcy codes. If you are found to have committed any misconduct, the court will deny the discharge. If you do receive a discharge, you may be responsible for many of the debts you have incurred. Some of things you will have to pay if the judge issues a discharge are:
* Taxes
* Student Loans
* Property settlements
* Fines and Penalties
* Criminal restitution and forfeitures
* Personal injury claims
If you file a chapter 13, you are required to have a repayment plan to pay your creditors back. This usually includes reductions that creditors give for paying. You have up to five years to pay the money to creditors. With a chapter 13, you cannot discharge debts for these things, which you can if you receive a full chapter 7 without any discharge.
* Taxes
* Student Loans
* Property settlements
* Fines and Penalties
* Criminal restitution and forfeitures
* Personal injury claims
* Child support and alimony
Anglers and farmers usually file under a chapter 12 as long as the business is family owned. They need to provide a list of creditors, assets along with liabilities and all documentation of their financial affairs. They are also given time to repay their obligations, although reduced quite a bit.
If you file for bankruptcy, you stand a good change of having better luck at getting credit, but at the same time, some creditors look at bankruptcy and will not give credit to the parties involved in the bankruptcy proceedings. It is a toss up if bankruptcy is good or bad for you; no one creditor has the same viewpoints on the subject.
You can also find more info on Bankruptcy Attorney and Bankruptcy Code. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.
Article Source: http://EzineArticles.com/?expert=Wade_Robins
Chapters 13 and 7 are meant for individuals. Chapter 9 pertains to towns and cities. Chapter 12 pertains to fishing and farming family businesses while chapter 11 is used by commercial businesses and is also known as reorganization of a business.
Chapter 7 is one of the types of bankruptcy that consists of the debtor selling most of his or her non-exempt assets to pay back creditors. You would have to check federal laws to find out what is non-exempt and what is not. The reason for filing a chapter 7 is to receive a discharge on your present debts. This is only granted if you follow the proper conduct of the bankruptcy codes. If you are found to have committed any misconduct, the court will deny the discharge. If you do receive a discharge, you may be responsible for many of the debts you have incurred. Some of things you will have to pay if the judge issues a discharge are:
* Taxes
* Student Loans
* Property settlements
* Fines and Penalties
* Criminal restitution and forfeitures
* Personal injury claims
If you file a chapter 13, you are required to have a repayment plan to pay your creditors back. This usually includes reductions that creditors give for paying. You have up to five years to pay the money to creditors. With a chapter 13, you cannot discharge debts for these things, which you can if you receive a full chapter 7 without any discharge.
* Taxes
* Student Loans
* Property settlements
* Fines and Penalties
* Criminal restitution and forfeitures
* Personal injury claims
* Child support and alimony
Anglers and farmers usually file under a chapter 12 as long as the business is family owned. They need to provide a list of creditors, assets along with liabilities and all documentation of their financial affairs. They are also given time to repay their obligations, although reduced quite a bit.
If you file for bankruptcy, you stand a good change of having better luck at getting credit, but at the same time, some creditors look at bankruptcy and will not give credit to the parties involved in the bankruptcy proceedings. It is a toss up if bankruptcy is good or bad for you; no one creditor has the same viewpoints on the subject.
You can also find more info on Bankruptcy Attorney and Bankruptcy Code. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.
Article Source: http://EzineArticles.com/?expert=Wade_Robins
Why Seniors Are Leading The Bankruptcy Charge
Across the country, senior citizens are starting to follow what is becoming a national trend by filing bankruptcy. Filing bankruptcy by seniors and retirees is approaching an all time high, according to the results of multiple studies and research.
The reason for this is that the economy is not particularly good right now, and seniors are the typical people living on a fixed income. As inflation occurs year after year, the amount of that fixed income does not keep pace with the rate of inflation. To compound this problem, health care costs have gone through the roof, and some pension plans have begun to put caps on the health care coverage of retired employees, and some companies have tried to cut that benefit out totally.
Senior Americans, more now than ever, are becoming increasingly overwhelmed by debt and financial obligations. One of the sad observations that comes as a result of this is noting that after being a part of the labor force for 30, 40 years or more, now is the time when the seniors should be able to kick back and enjoy life, but for many, that is not the reality they are facing. One estimate indicates that people age 55 and over account for about 22% of those filing for bankruptcy.
There are many reasons that seniors are facing this problem, and many of these things are not relegated to seniors. There is the skyrocketing cost of health care which also includes prescription drugs, and unfortunately, these become used more and more as people advance in years. Other necessities such as food, clothing are done on credit cards. A desire to help their children who may be struggling financially also plays a factor. Another large factor is unrealistic expectations of what income their pensions will provide, the benefits (or lack thereof) that their pensions include, and the extent to which Social Security plays a minor role in their income.
One way that many seniors have found temporary relief from this problem is to accept the offers of a credit card that seem to arrive by the truckload in every day's mail. Out of necessity, they get the credit cards, charge them to the hilt, and then when in the same situation next month, the process is repeated until it becomes a house of cards, which falls loudly. They are as helpless as anyone else as they see their savings erode even more quickly with the high interest rates charged by many of these credit cards.
One of the problems reported by bankruptcy lawyers in various cities is that in consulting with seniors about the financial problem, very few of them were willing to bring the problem out early, where bankruptcy alternatives could have played a role. It seems to be an attitude with this age group, where they would rather suffer than be embarrassed and swallow their pride.
The one thing that most people who are considering bankruptcy are not aware of, and this is particularly true of seniors, is that more often than not, they are not aware of bankruptcy alternatives. Bankruptcy should always be your very last resort, with all viable options thoroughly investigated prior to filing. A good bankruptcy lawyer will help with that.
To get more insights and a free bankruptcy evaluation from an bankruptcy lawyer who is local to you and familiar with the laws in your state, please visit our Bankruptcy Information web site at http://www.bankruptcy-data.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
The reason for this is that the economy is not particularly good right now, and seniors are the typical people living on a fixed income. As inflation occurs year after year, the amount of that fixed income does not keep pace with the rate of inflation. To compound this problem, health care costs have gone through the roof, and some pension plans have begun to put caps on the health care coverage of retired employees, and some companies have tried to cut that benefit out totally.
Senior Americans, more now than ever, are becoming increasingly overwhelmed by debt and financial obligations. One of the sad observations that comes as a result of this is noting that after being a part of the labor force for 30, 40 years or more, now is the time when the seniors should be able to kick back and enjoy life, but for many, that is not the reality they are facing. One estimate indicates that people age 55 and over account for about 22% of those filing for bankruptcy.
There are many reasons that seniors are facing this problem, and many of these things are not relegated to seniors. There is the skyrocketing cost of health care which also includes prescription drugs, and unfortunately, these become used more and more as people advance in years. Other necessities such as food, clothing are done on credit cards. A desire to help their children who may be struggling financially also plays a factor. Another large factor is unrealistic expectations of what income their pensions will provide, the benefits (or lack thereof) that their pensions include, and the extent to which Social Security plays a minor role in their income.
One way that many seniors have found temporary relief from this problem is to accept the offers of a credit card that seem to arrive by the truckload in every day's mail. Out of necessity, they get the credit cards, charge them to the hilt, and then when in the same situation next month, the process is repeated until it becomes a house of cards, which falls loudly. They are as helpless as anyone else as they see their savings erode even more quickly with the high interest rates charged by many of these credit cards.
One of the problems reported by bankruptcy lawyers in various cities is that in consulting with seniors about the financial problem, very few of them were willing to bring the problem out early, where bankruptcy alternatives could have played a role. It seems to be an attitude with this age group, where they would rather suffer than be embarrassed and swallow their pride.
The one thing that most people who are considering bankruptcy are not aware of, and this is particularly true of seniors, is that more often than not, they are not aware of bankruptcy alternatives. Bankruptcy should always be your very last resort, with all viable options thoroughly investigated prior to filing. A good bankruptcy lawyer will help with that.
To get more insights and a free bankruptcy evaluation from an bankruptcy lawyer who is local to you and familiar with the laws in your state, please visit our Bankruptcy Information web site at http://www.bankruptcy-data.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
Don't Attempt Bankruptcy Without Knowing Bankruptcy Law
If you think that you have nothing now, the new bankruptcy laws could even shrink that! The new bankruptcy law overhauls the laws that were modified in 1978. It not only tightens the requirements for those who want to file for bankruptcy but for their attorneys as well.
These are several of the major changes that were initiated under the new bankruptcy law:
* “Means Test” – You now have to show that you are not abusing the use of bankruptcy. This test calculates what you make per month minus certain expenses that are allowed. The “median income” will vary from state to state. If you fail the “means test’, then you must file for Chapter 13 bankruptcy.
* Expense allowances – Guidelines are put forth by the IRS for allowable expenses, and they are stingy. The food allowance is approximately $200 a month, and the housing allowance is approximate $800 a month.
* Residency requirements – There are state and federal bankruptcy laws, and some state laws are more lenient than others. Texas and Florida have very generous “homestead allowances”. The new bankruptcy law discourages you to look around for the best deal. You are not permitted to file for bankruptcy in a more favorable state unless you have resided there for a minimum of two years.
* Mandatory credit counseling – Another change that came with the new bankruptcy law is that you have to take a credit counseling course that has been approved within 180 days of filing for bankruptcy. Sorry to say, this is not a free course. The cost of this course is approximately $75.00.
* More paperwork – In order to prove that bankruptcy is necessary, the consumer will have to present much more documentation. Such things a debtor must provide are: a list of all unsecured and secured creditors, proof of taking the credit counseling course, a detailed list of one’s expenses and monthly income, liabilities and assets, the most recent tax return, photo ID and pay stubs.
* Hefty legal fees – A bankruptcy attorney must now “certify” that their client’s figures are accurate. If they prove not to be, the lawyer as well as the client may face sanctions. This means that your attorney must do more investigating and fact-checking to make sure your information as well as his certification is above-board.
Is it best to have a bankruptcy attorney when and if it comes time to file for bankruptcy? There is certainly no legal requirement stating that you have to retain a lawyer. However, you would be very foolish not to do so. If you choose to file on your own, and forget to file certain documents, your case can be subject to dismissal and you will need to start again from the very beginning. As an example, a couple recently tried to file for bankruptcy online. They were not exactly sure if we should have filed jointly or just the husband. They were doing it on their own and really goofed things up and now they are paying for it! Please do not do this in an attempt to save some money because it will only come back to haunt you in the end. It is in your best interest to have an experienced bankruptcy attorney working for you.
For more insights and additional information on Bankruptcy Law and also to get a free bankruptcy evaluation from an accredited bankruptcy lawyer who is local to you, please visit our web site at http://www.bankruptcy-data.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
These are several of the major changes that were initiated under the new bankruptcy law:
* “Means Test” – You now have to show that you are not abusing the use of bankruptcy. This test calculates what you make per month minus certain expenses that are allowed. The “median income” will vary from state to state. If you fail the “means test’, then you must file for Chapter 13 bankruptcy.
* Expense allowances – Guidelines are put forth by the IRS for allowable expenses, and they are stingy. The food allowance is approximately $200 a month, and the housing allowance is approximate $800 a month.
* Residency requirements – There are state and federal bankruptcy laws, and some state laws are more lenient than others. Texas and Florida have very generous “homestead allowances”. The new bankruptcy law discourages you to look around for the best deal. You are not permitted to file for bankruptcy in a more favorable state unless you have resided there for a minimum of two years.
* Mandatory credit counseling – Another change that came with the new bankruptcy law is that you have to take a credit counseling course that has been approved within 180 days of filing for bankruptcy. Sorry to say, this is not a free course. The cost of this course is approximately $75.00.
* More paperwork – In order to prove that bankruptcy is necessary, the consumer will have to present much more documentation. Such things a debtor must provide are: a list of all unsecured and secured creditors, proof of taking the credit counseling course, a detailed list of one’s expenses and monthly income, liabilities and assets, the most recent tax return, photo ID and pay stubs.
* Hefty legal fees – A bankruptcy attorney must now “certify” that their client’s figures are accurate. If they prove not to be, the lawyer as well as the client may face sanctions. This means that your attorney must do more investigating and fact-checking to make sure your information as well as his certification is above-board.
Is it best to have a bankruptcy attorney when and if it comes time to file for bankruptcy? There is certainly no legal requirement stating that you have to retain a lawyer. However, you would be very foolish not to do so. If you choose to file on your own, and forget to file certain documents, your case can be subject to dismissal and you will need to start again from the very beginning. As an example, a couple recently tried to file for bankruptcy online. They were not exactly sure if we should have filed jointly or just the husband. They were doing it on their own and really goofed things up and now they are paying for it! Please do not do this in an attempt to save some money because it will only come back to haunt you in the end. It is in your best interest to have an experienced bankruptcy attorney working for you.
For more insights and additional information on Bankruptcy Law and also to get a free bankruptcy evaluation from an accredited bankruptcy lawyer who is local to you, please visit our web site at http://www.bankruptcy-data.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
Monday, July 30, 2007
Bankruptcy Mortgage Information For Homeowners
Bankruptcy attorneys estimate that one in every 53 U.S. households filed for bankruptcy in 2005. Most of these people didn't lose the farm in Vegas or drink away their life savings. Chances are their financial problems stemmed from one of three sources: job loss, divorce, or unexpected and expensive medical emergencies.
Most homeowners who file for bankruptcy do not lose their homes. Bankruptcy laws are designed to satisfy creditors and protect debtors. Putting a family out on the street helps no one.
Ted Janger of The American Bankruptcy Institute stresses that, “It is important to have competent counsel advise you, both about the choices among chapters and about how best to make sure that bankruptcy operates to solve your financial difficulties, rather than just as a hiatus.”
Establishing Credit After Bankruptcy
For people who got into trouble with credit, the thought of using it again can be frightening. It’s a catch-22. To be considered a good candidate for a new mortgage or car loan, consumers have to rebuild their credit. If they don’t, when a prospective lender looks at their credit report, all they will see is the bankruptcy. There won’t be a new track record of handling credit responsibly or of improved financial management skills.
It doesn’t seem logical, but after people have successfully filed for bankruptcy, they will receive a flood of new credit offers. If they accept a few well chosen ones and pay more than the minimum payment each month, this will appear as positive data in their credit report.
One form of new credit would be a first mortgage refinance or a new second mortgage. Either transaction would depend on the amount of equity in the home and be subject to any guidelines established by the bankruptcy court.
Mike Hamel is the author of three business books and several articles about mortgage financing. His material is featured on sites like E-lends. To learn more about a Bankruptcy Mortgage, or to receive a complimentary quote, visit E-lends. Even after bankruptcy, you should still be able to get a competitive mortgage.
http://ezinearticles.com/?Bankruptcy-Mortgage-Information-For-Homeowners&id=660435
Most homeowners who file for bankruptcy do not lose their homes. Bankruptcy laws are designed to satisfy creditors and protect debtors. Putting a family out on the street helps no one.
Ted Janger of The American Bankruptcy Institute stresses that, “It is important to have competent counsel advise you, both about the choices among chapters and about how best to make sure that bankruptcy operates to solve your financial difficulties, rather than just as a hiatus.”
Establishing Credit After Bankruptcy
For people who got into trouble with credit, the thought of using it again can be frightening. It’s a catch-22. To be considered a good candidate for a new mortgage or car loan, consumers have to rebuild their credit. If they don’t, when a prospective lender looks at their credit report, all they will see is the bankruptcy. There won’t be a new track record of handling credit responsibly or of improved financial management skills.
It doesn’t seem logical, but after people have successfully filed for bankruptcy, they will receive a flood of new credit offers. If they accept a few well chosen ones and pay more than the minimum payment each month, this will appear as positive data in their credit report.
One form of new credit would be a first mortgage refinance or a new second mortgage. Either transaction would depend on the amount of equity in the home and be subject to any guidelines established by the bankruptcy court.
Mike Hamel is the author of three business books and several articles about mortgage financing. His material is featured on sites like E-lends. To learn more about a Bankruptcy Mortgage, or to receive a complimentary quote, visit E-lends. Even after bankruptcy, you should still be able to get a competitive mortgage.
http://ezinearticles.com/?Bankruptcy-Mortgage-Information-For-Homeowners&id=660435
Now Is The Time For Understanding Bankruptcy In Business
Individual and business bankruptcy is entirely different from each other. Businesses use bankruptcy to reorganize their company to avoid bankruptcy. This allows time to turn a profit and retain ownership of all assets. Many businesses can file under chapters 13, 7, 12 and 11 depending on their circumstance.
Limitations apply to businesses that use chapters 12 and 13. Chapter 12 is dedicated to farmers and anglers who operate family businesses. Chapter 13 pertains to proprietary business owners of a small business. Because of these limitations, most businesses file under chapters 7 or 11.
If you feel your business is failing, bankruptcy may be the answer and chapter 7 will allow you to liquidate your assets to settle debts with creditors. A court appointed trustee will help you through the process of liquidation and keeps the money to distribute to creditors after all sales are completed. Creditors are paid back according to federal bank codes.
Understanding bankruptcy in business leads us to look further at chapter 7. Creditors like chapter 7 bankruptcies because they receive as much of their money as possible through the liquidation process along with the legal liability of their claim. The company itself is responsible for taxes in most cases. The chapter 7 expenses and taxes are paid before creditors. This prevents you from incurring any more debt than you already have.
If you feel, your business can be saved but need some time to reorganize and turn a profit, chapter 11 will benefit you by allowing the business to run as usual while trying to become profitable. Any big decisions about the business must have approval from the courts. Such businesses like K-Mart and Enron used chapter 11 bankruptcies in order to reorganize and turn a profit. Many companies’s use this course of action and succeed, but some do not make it and lose their business and assets.
Creditors are stopped cold in their tracks from taking any further action against you once you file the bankruptcy papers and this helps a company turn a profit and pay creditors before collection actions further hamper the business. Understanding bankruptcy in business in not much different from a personal bankruptcy, but there are a few things that appear different. If a company needs some time to earn a few dollars, they can just file a chapter 11 and reorganize before losing the company. We really do not have that complete option as personal bankruptcy candidates.
You can also find more info on Filing Personal Bankruptcy and Avoid Bankruptcy. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.
http://ezinearticles.com/?Now-Is-The-Time-For-Understanding-Bankruptcy-In-Business&id=661498
Limitations apply to businesses that use chapters 12 and 13. Chapter 12 is dedicated to farmers and anglers who operate family businesses. Chapter 13 pertains to proprietary business owners of a small business. Because of these limitations, most businesses file under chapters 7 or 11.
If you feel your business is failing, bankruptcy may be the answer and chapter 7 will allow you to liquidate your assets to settle debts with creditors. A court appointed trustee will help you through the process of liquidation and keeps the money to distribute to creditors after all sales are completed. Creditors are paid back according to federal bank codes.
Understanding bankruptcy in business leads us to look further at chapter 7. Creditors like chapter 7 bankruptcies because they receive as much of their money as possible through the liquidation process along with the legal liability of their claim. The company itself is responsible for taxes in most cases. The chapter 7 expenses and taxes are paid before creditors. This prevents you from incurring any more debt than you already have.
If you feel, your business can be saved but need some time to reorganize and turn a profit, chapter 11 will benefit you by allowing the business to run as usual while trying to become profitable. Any big decisions about the business must have approval from the courts. Such businesses like K-Mart and Enron used chapter 11 bankruptcies in order to reorganize and turn a profit. Many companies’s use this course of action and succeed, but some do not make it and lose their business and assets.
Creditors are stopped cold in their tracks from taking any further action against you once you file the bankruptcy papers and this helps a company turn a profit and pay creditors before collection actions further hamper the business. Understanding bankruptcy in business in not much different from a personal bankruptcy, but there are a few things that appear different. If a company needs some time to earn a few dollars, they can just file a chapter 11 and reorganize before losing the company. We really do not have that complete option as personal bankruptcy candidates.
You can also find more info on Filing Personal Bankruptcy and Avoid Bankruptcy. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.
http://ezinearticles.com/?Now-Is-The-Time-For-Understanding-Bankruptcy-In-Business&id=661498
Tuesday, July 24, 2007
Offshore Options For Bankrupts And Those With Poor Credit
If you've had more than your fair share of financial knocks and scrapes in life and you've been made bankrupt or you simply have a poor credit history you'll know that being in such a financial position is not only emotionally very difficult and stressful, it can also lead to you living in a catch 22 situation where you can’t even establish a new business or get a new business bank account to enable you to trade and rebuild your professional reputation and financial standing.
There are however excellent legitimate offshore options for bankrupts and those with poor credit history because although you’re bankrupt in one country, that financial label and unfairly associated stigma does not travel outside the borders of the country in which you have been declared.
So, if you’re in a position where you want to start a new business or resume contracts where you left off, where you want to open a bank account to receive cheques and payments for work undertaken and completed and everywhere you currently turn you’re faced with closed doors and ‘I’m sorry, we can’t help you’ type rejections, it’s time to turn your own back on so called helpful banks and institutions who only ever help those who can already help themselves and look at the offshore world.
First things first you need to know that it is 100% legal for you to go offshore. Secondly here’s an example scenario of when you could go offshore and how you could go offshore: -
Example Scenario
You have been declared bankrupt because clients bounced cheques on you and failed to pay you for work you had undertaken.
You now have a new client base and have orders open for which you will be paid in part up front thus giving you the capital you need to get started.
You can no longer be a director of a new company in your home country.
Without a company you cannot open a business bank account.
You cannot risk using your personal account for these transactions.
Example Solution
You could immediately establish an off-the-shelf company offshore and open an offshore business bank account in the name of the company.
You can use the company to trade through and raise invoices from, you can use the bank account to send and receive payments.
Hey presto you’re back up and running!
Just remember that you need to choose a reputable offshore tax haven that your clients won’t be suspicious of or have black listed in their minds as a location used by ‘dodgy’ business persons!
Additionally if you use an offshore company incorporation service provider you should be issued with a 100% money back guarantee that if they cannot open you an offshore business bank account in the name of your company they refund all monies paid up front to them - because opening an account can be tricky for some service providers and you do not want to be left in the position where you have a company to trade through but no account to receive payments into.
And finally, remember also that by going offshore you cannot evade taxation. Where a reporting requirement exists in your own home country you are legally obliged to abide by that reporting requirement.
Rhiannon Williamson writes about offshore company formation and incorporation - how to do it and who can benefit from it - and understanding the features and benefits of offshore bank accounts, offshore trusts and investments. Her website ShelterOffshore.com has all the offshore information you could possibly need.
http://ezinearticles.com/?Offshore-Options-For-Bankrupts-And-Those-With-Poor-Credit&id=654580
There are however excellent legitimate offshore options for bankrupts and those with poor credit history because although you’re bankrupt in one country, that financial label and unfairly associated stigma does not travel outside the borders of the country in which you have been declared.
So, if you’re in a position where you want to start a new business or resume contracts where you left off, where you want to open a bank account to receive cheques and payments for work undertaken and completed and everywhere you currently turn you’re faced with closed doors and ‘I’m sorry, we can’t help you’ type rejections, it’s time to turn your own back on so called helpful banks and institutions who only ever help those who can already help themselves and look at the offshore world.
First things first you need to know that it is 100% legal for you to go offshore. Secondly here’s an example scenario of when you could go offshore and how you could go offshore: -
Example Scenario
You have been declared bankrupt because clients bounced cheques on you and failed to pay you for work you had undertaken.
You now have a new client base and have orders open for which you will be paid in part up front thus giving you the capital you need to get started.
You can no longer be a director of a new company in your home country.
Without a company you cannot open a business bank account.
You cannot risk using your personal account for these transactions.
Example Solution
You could immediately establish an off-the-shelf company offshore and open an offshore business bank account in the name of the company.
You can use the company to trade through and raise invoices from, you can use the bank account to send and receive payments.
Hey presto you’re back up and running!
Just remember that you need to choose a reputable offshore tax haven that your clients won’t be suspicious of or have black listed in their minds as a location used by ‘dodgy’ business persons!
Additionally if you use an offshore company incorporation service provider you should be issued with a 100% money back guarantee that if they cannot open you an offshore business bank account in the name of your company they refund all monies paid up front to them - because opening an account can be tricky for some service providers and you do not want to be left in the position where you have a company to trade through but no account to receive payments into.
And finally, remember also that by going offshore you cannot evade taxation. Where a reporting requirement exists in your own home country you are legally obliged to abide by that reporting requirement.
Rhiannon Williamson writes about offshore company formation and incorporation - how to do it and who can benefit from it - and understanding the features and benefits of offshore bank accounts, offshore trusts and investments. Her website ShelterOffshore.com has all the offshore information you could possibly need.
http://ezinearticles.com/?Offshore-Options-For-Bankrupts-And-Those-With-Poor-Credit&id=654580
Subscribe to:
Posts (Atom)