Credit Card Debt Can Lead to Bankruptcy
Posted on July 3, 2008
Filed Under Debt Consolidation, Avoid Bankruptcy, Business Bankruptcy, Chapert 11, Chapter 13, Blog Carnivals | Leave a Comment
With inflation reaching double figure everything has become so costly, most of the income is going in buying things for daily needs. Most of the banks have already hiked lending rates and others will be following soon. Hence most of us especially owning credit cards must be thinking of putting aside the payments for later without realizing that we are getting into credit card debt. Due to this most of us will end up paying a tremendous amount in interest just to obtain the item or service now.
In India banks charge 3.15% interest rate on credit cards. On some cards bank offer low interest rate as introductory offer but one thing we should know that this interest rate is coupled with the fact that default or late fee will shoot up the interest rate. Then it would become difficult to repay debt. Even the minimum payments will be more than that one can afford to pay.
Therefore some smart people try bankruptcy to escape from credit card debt. In fact bankruptcy is an option that has to be considered when an individual cannot pay their debts as they fall due. Bankruptcy proceedings can free you from overwhelming debts so you can make a fresh start, subject to some restrictions. Yes there are some debts that cannot be eliminated through bankruptcy. Those debts include student loans, recent taxes, etc.
Though bankruptcy idea is useful but you can avoid this by keeping all your payments up to mark. Always pay more than the minimum in your credit card balances. You should always pay as much as possible since credit cards carry the highest interest rates. Though you should also keep check on the interest rates charged along with any other costs and fees. First of all pay for essential services and expenses. Then immediately try to cancel the highest interest debt. If you have more than one card then first do away with the payments of the card Read more
Chapter 15 Bankruptcy
Posted on July 2, 2008
Filed Under Debt Consolidation, Avoid Bankruptcy, Business Bankruptcy, Chapert 11, Chapter 13, Blog Carnivals | Leave a Comment
The laws of Bankruptcy in the US looks at the interest of debtors and creditors that are located in US. However, when a foreign entity is involved in financial debts within the US, it is a totally different story. To help prevent creditors from being used by foreign entities and to help foreign entities from being overcome by debt in the US Chapter 15 bankruptcy was developed.
The rationale behind bankruptcy is to provide debtors an avenue to get their debts under control while ensuring the creditors to get paid within the capacity of the debtors concerned. It is meant to arrive at a win-win situation between and among the parties involved.
An Overview of Chapter 15 Bankruptcy
The world market exists thus world wide financial transactions also take place to include existence of debts across countries. To protect everyone involved Chapter 15 bankruptcy was established.
Chapter 15 helps foreign debtors to clear debts while also providing for communication between countries involved. It helps to avoid the many conflicts and ensure the creditors do not completely lose out in the process of trying to regain the money owed to them.
Is Chapter 15 Applicable to you?
Collecting debts from foreign entities can be a tall order. The differences from country to country can make debt collection difficult. It can also be hard for foreign entitles to clear debts because of the fact they are not under US jurisdiction.
Dealing with foreign entities’ debts can be tricky thus the need to have Chapter 15 which can respond to such situation. Chapter 15 helps the foreign entity to repay debts through a controlled situation It also provides for more abilities for the government to get involved and ensure debts are paid.
Chapter 15 also allows the US to work with the foreign country to help the Read more
Marriage During Chapter 13 Bankruptcy
Posted on July 1, 2008
Filed Under Debt Consolidation, Avoid Bankruptcy, Business Bankruptcy, Chapert 11, Chapter 13, Blog Carnivals | Leave a Comment
We can never tell the future. Some people file bankruptcy and then get married. With a Chapter 7
bankruptcy, it is normally not a problem because most Chapter 7 bankruptcies are over in a matter of months. However, a Chapter 13 bankruptcy will last between 3 to 5 years. And a lot can change during that time, including finding Mr. Right or Ms. Right. For individuals who are still in a Chapter 13 case, the question becomes: “Does marriage during Chapter 13 bankruptcy affect the bankruptcy”? And “if it does, how”?
The simple answer is yes, marriage during Chapter 13 bankruptcy does or, at least, can affect the
bankruptcy.
One of the first things that you do when filing bankruptcy is to disclose your income and expenses so that the court, trustee, and creditors can fairly determine your financial situation and your ability to pay on a Chapter 13 payment plan. With an individual, the law looks at the individual’s finances. With a married individual filing an individual bankruptcy, the law looks at the married couple’s finances even though one Spouse is not involved in the bankruptcy.
Also, in determining if an individual qualifies for bankruptcy, the finances of the individual or the married couple are compared to other people in your state in a similar situation.
The law does not merely look at your financial situation at the beginning of filing bankruptcy. Rather, the law will look at your financial situation when there are changes because the changes may affect your ability to pay the payment plan.
In the case of getting married during a Chapter 13 bankruptcy, you may actually be able to pay more to your creditors because your monthly net income (income less expenses) may increase if your new Spouse helps pay household bills. However, if your new Spouse does not work and does not pay toward household expenses, you Read more
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