Before you consider bankruptcy, determine if you qualify for a debt consolidation loan, by reading our debt consolidation blog, and by using our debt consolidation loan calculator.
Debt Consolidation Blog:
My husband and I are considering filing Ch. 13 Bankruptcy. We both work full-time and also receive an Adoption Subsidy check per month for our two sons we just adopted. Do you have to include the Adoption Subsidy amount in our income even though it\’s not \”taxable income\” by the IRS standards?
I am not an attorney but my answer would be no. Since this is a benefit paid to you like social security, to support your adopted children, I would think it untouchable by Chapter 13 standards.
I have been working in the US for the past 6 years and have been
denied permanent residency status because terms of my employment
has changed. I was forced to leave the US. I am now facing no, or
little income and debt of 50,000 US and debt of 100,000 in Canada.
I am planning to declare bankruptcy in Canada. What are my US
options and ramifications.
I am not an attorney but I feel.
Likely your unsecured debt will complile till it goes to collections and they ultimately find out you have left, and right it off because you are not responding. Your secured debt will be repossessed and disposed of. You will have incinerated your US credit rating. You could file for us Bankruptcy but why? unless you are intending to return and work in US and need credit again.
But, as far as I know entry to the US in later visits will not be effected from a Homeland security stand point.
Tough one but nonetheless part of the world of rolling debt on debt. In an consolidation your debt doesnot go away and in fact is now being taken on by one creditor rather than the original bunch you are paying out. So. the interest rate charged by the consolidator is now subject to an evalutation system of debt vs assets and a rate is determined. However, by simply going in and needing a consolidation in the first place raises, “Red Flags” anyway to most lenders. A rate will be assessed likely 5 to 6 points higher than prime, perhaps even more if the risk is higher. It is not uncommon to see interest rates on consolidation loans upwards of 12 to 15%. These rates can be hidden nicely by “service and adminstration charges”
Unless you absolutely need them, they are the highest interest bearing loan facilities going next to Gino the shark. The element of taking advantage of the disenfranchised and desparate are unclearly displayed but just under the signature in the fine print. Be very carefull.
As a general rule, your credit rating is effected before you do your consolidation. Usually long before you take any action to help your circumstances the damage has already been done. Thought. Get a copy of your credit rating and have a first hand look at it to be sure what is there is true and accurate.
Wage Earners (Chapter 13) will be specifically tailored to a persons ability to repay a portion of their debt over a period of time. It must be mentioned that if the size of debt is too big and the creditors do not vote on it positively then you may be forced to look at a Chapter 7 Bankruptcy.
Fees, the root of all evil- or so you may think. In this case it may be well worth the fees a Debt Management Service or Foundation may charge to “speak” on your behalf to your creditors. Some times we can stave off Bankruptcy in America if we enlist the help of trained professionals in helping us negotiate repayment terms with our creditors.
Stay tuned for the Debt Consolidation Forum. A truly usefull interactive tool to connect professionals, people and their problems and questions. Soon available on Bankruptcy America.com
Well its nearly here. Tax time. Getting money or paying? If you are paying make absolutely sure you set the funds aside or ask for an expention in filing.
If you are recieving a refund how will you use your return? Good suggestion. Pay off debts and perhaps use it for a Share Loan in order to consolidate your high interest credit card or charge card debt.
Many times you may find that an Auto Dealership will offer to allow you to Consolidate some of your current unsecured ( Credit Card ) type debt into an automobile loan. They will offer to sell you the auto at a reduced price and prop up the rest of the loan with a debt consolidation. Good or Bad?
Good that you can pay out some of your high interest credit card balances. If you can pay them all off is best but unlikely.
Bad that the interest is usually only a point or two under the car loan rate and now you have all of your eggs in one basket, meaning if you fail to pay you loose all around. Check out all the angles and ask lots of questions.