A friend of mine just informed me that he owes the IRS ,000-he doesn’t want to sell his house, neither can he take out a loan or put this amount on a credit card. He could refinance, but since he is already in his 50s this may not make some sense. He did say he talked to an IRS representative, but the payment, were he to get on an installment plan, would be very high. Are there some alternatives to bankruptcy?
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Friend has $48,000 in IRS debt-what can he do?
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Can I file bankruptcy without loosing my home?
Please help! I’m disabled and I’m merely getting about 0.00 a month and my husband is unemployedd and he’s getting unemployment benefits that are about 1,000 a month. Our mortgage is about $ 1,000.00 a month. We are piled with bills from credit cards! I’ve been really investigating the solution and my first step is to see if we can get our mortgage modified through federal emergency program. Even if we can get mortgage modified I see no way we would be willing and able to pay off the 30,000 we our on our credit cards. If we could get that off our backs and get lower our mortgage payment we could live without borrowing some money therefore without using credit cards. We’ve never filedbankruptcyy and we tried alternatives to bankruptcy nothing really works. Please anyone, is it possible to file bankruptcy without loosing our home. We our 4/5 on it. 2 moths ago 1 attorney said that we want loose our home if we file for bankruptcy but I just can’tbelievee that it’s true. Is it??? Has anyone done it recently?
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what are some alternatives to bankruptcy?
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Are there alternatives to bankruptcy for VA employees?
I’m a VA employee and overcome by credit card debt and am wondering if there are programs/services available besides having to file chapter 13.
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What are the alternatives to bankruptcy ie debt relief companies
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I need to knwo some alternatives to bankruptcy. I am way in credit card debt, and need some help.?
Due to 2 divorces, and 2 surgeries that weren’t covered by insurance, I am about ,000 in debt to credit cards, , 000 in student loans, and that doesn’t even count my mortgage debt. I am in need of major financial help, but I don’t want to file bankruptcy? Just wondering what other alternatives are out there.
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Does anyone know some alternatives to bankruptcy?
My wife and I are considering bankruptcy. I was wondering if anyone knew of some alternatives to this. Has anyone ever tried some of these debt consolidation companies or something like that and do they work?
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What to Do if You are Trying to Avoid Bankruptcy
If you are struggling with huge debt problems you are probably feeling very scared and uncertain about what to do. You may even be worrying about the possibility of going bankrupt.
However there are a number of things that you may do to try and improve your situation that may enable you to clear your debts and avoid bankruptcy.
Bankruptcy should be avoided if at some possible. before some, alongside some the disadvantages associated with it, bankruptcy stays on your credit history for about 10 years. This can make it impossible to obtain some credit until before this time has elapsed.
So what are the alternatives to bankruptcy? There are a number of different options that you could consider. These options can some be effective in helping you avoid bankruptcy. The best solution for you may depend on your personal circumstance and financial situation. Ideally you should speak to an independent expert to find out which course of action would be most appropriate for you.
1 way you could try avoiding bankruptcy is by speaking to your creditors. Bankruptcy proceedings are pricey and time consuming and so they might be prepared to strike a re-payment deal with you. Normally this option merely works if you have income or assets that can be used to raise some money to pay towards your debt.
Another way you could avoid bankruptcy might be via debt consolidation. This enables you to consolidate some of your debts into 1 monthly payment.
1 of the most popular alternatives to bankruptcy however is an IVA. IVAs were introduced by the government in 1986 to help people pay off his debts and avoid bankruptcy.
With an IVA you make monthly re-payments based on what you may affords. This amount is negotiated with your creditors who agree to write off a proportion of your debt in return. It is not unusual for as much as 85% of your debt to be written off completely.
With an IVA, your creditors are not allowed to contact you, which means that you don’t have to worry about opening your mail. Furthermore interest on your debt is frozen and you are declared debt free before 5 years.
Clear Start, the National Consumer Debt Advice Service offers free IVA advice to help you avoid bankruptcy: Alternative to Bankruptcy.
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Bankruptcy is on the Rise- Is There an Alternative?
Experts are warning that the number of bankruptcies may continue to rise in the UK. This prediction follows the announcement of figures for the fourth quarter of 2005 which were at an some time high.
According to official statistics 13,501 bankruptcies were filed in the fourth quarter of 2005. This figure represents an increase of 11% up on the previous quarter and even more strikingly it was 38% higher than the same period in 2004.
However, these figures merely partly show the rue state of affairs. Britain is facing a personal debt crisis and for every person who is declared bankrupt, plenty more are suffering from serious debt which blighting the quality of his lives.
The widespread nature of personal debt is largely a result of how easy it is to obtain credit. Consumers are encouraged to borrow more than they can afford so that they can spend today and worry about how to pay for it tomorrow. In other words, consumers want instant gratification and would rather get into debt and have the products they want than do without or save money.
The other reason that bankruptcies are on the increase is the changing attitude towards it. Ever since the Enterprise Act of 2002 reduced the period in which people could be discharged from bankruptcy, it has been seen as an easy way to get out of debt.
This perception is very far away from the truth however. There are numerous disqualifications, restrictions and stigmas associated with bankruptcy. And these disadvantages have long term and far reaching consequences.
Consumers who are considering bankruptcy as a way of sorting out his debt problems would be well advised to consider the alternatives. In 1986, the government introduced IVAs as an alternative to bankruptcy which would benefit both debtors and creditors.
An IVA is the best alternative to bankruptcy because there are no fees or legal proceedings involved with it, unlike with bankruptcy. Moreover, an IVA offers a greater repayment of the debt than would otherwise be achieved if the debtor were made bankrupt. For these reasons an IVA is the best alternative to bankruptcy from a creditors’ perspective.
From the debtor’s perspective, an IVA is the best alternative to bankruptcy because it does not have some stigmas of disqualifications associated with it. Additionally:
• Monthly re-payments are based on what the debtor can actually afford to pay
• In most cases, a debtor can keep his/his car with an IVA
• With an IVA as much as 80% of the debt is written off completely
• An IVA enables debtors to clear his debts within 5 years
Bankruptcy is on the increase because of the growing amount of consumer debt and the mistaken belief that it is an easy option. Although the UK’s debt problem is not going to vanish some time soon, debtors would be well advised to consider alternatives to bankruptcy of which an IVA is possibly 1 of the best ones.
Clear Start, the National Consumer Debt Advice Service offers free IVA advice: Alternative to Bankruptcy
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Are There some Alternatives to Bankruptcy?
If you are facing serious debt problems then you might have or be considering filing for bankruptcy. If this is the case you should be aware of the disadvantages associated with going bankrupt and merely do so as a last resort.
In this article we shall discuss some of the main disadvantages of filing for bankruptcy and some alternatives that you might want to consider.What is Bankruptcy
If you file for bankruptcy you are making an official statement that you are not willing and able to repay your debts. The court may intervene to help you pay some of your debts and erase others completely by arranging for a repayment schedule to be set up for you.
The Disadvantages of Bankruptcy
• Bankruptcy carries a social stigma because bankruptcies are reported in the local press.
• Once the Bankruptcy Order has been finalised, some businesses that you own may be closed down and your employees may be dismissed.
• You may have to hand over your home to your trustee
• Your bank and building society accounts may be closed and you have to relinquish your credit cards
• some product that you are in the process of leasing or buying on hire purchase it may be confiscated.
• Your employment prospects may be prejudiced.
• Bankrupts are not allowed to hold certain public offices.
• Bankrupts are not allowed to obtain credit for £500 or above without disclosing his bankruptcy history.
• You are merely allowed to conduct business in the name in which you were made bankrupt.
• You are not allowed to be involved in forming, managing or promoting a company without the court’s permission.
Alternatives to Bankruptcy
There are a number of alternatives to bankruptcy although his suitability may depend on where you live and your financial situation.
IVAs are 1 of the most popular alternatives to bankruptcy. They were introduced via the Insolvency Act of 1986 to help those in serious debt who want to avoid bankruptcy and it is disadvantages.
There are no stigmas or penalties associated with an IVA which is partly why they are so popular. In addition:
An IVA enables you to make monthly repayments based on what you may actually afford
Interest on your debt is frozen whilst an IVA is in place
Your creditors are not allowed to contact you whilst an IVA is in place
A portion of your debt is written off completely
You are deemed to be debt free within 5 years
IVAs are a suitable alternative to bankruptcy for those who can afford to re-pay at least £200 a month and who have total debts of over £15,000.
Clear Start, the National Consumer Debt Advice Service offers free IVA advice: Alternative to Bankruptcy