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Posts Tagged Bankruptcy

Why People Get in Debt and How to Eliminate It Quickly!

Jan 24

Posted by admin in Debt Relief

The reasons people start to drown in credit card and other debt are many. It might be a spouse passed away, divorce or they bought things they couldn’t afford to pay back. One of the most common reasons for people getting in debt trouble is their job.

Pay cuts, lay off, or an accident that causes disability can put you in major debt in no time at all. Many credit card companies offer an option to pay an added fee that will pay your monthly payments in the event of such catastrophies. There are insurance companies such as AFLAC which can really help financially should you find yourself with a disability that keeps you off the job. The most important thing to do if you get a big pay or layed off (fired) is to find that new job. Here are some tips to getting that dream job:

1) Make sure you have a great resume. Added tip: Include a cover letter too!

2) Get ready for many interviews and prepare to ace them.

3) Put your resume online.

Here are some great job search sites:

Monster.com,
Hotjobs.com,
Careerbuilder.com
and don’t forget craigslist

If you are unemployed and falling behind on your bills you would probably benefit from a credit counseling program. These programs are designed to bring you back on track and lower your monthly payments.

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Debt Free Living

Jan 13

Posted by admin in Debt Relief

Living a debt free life is the dream of just about everyone. For those who are now living a life without debts, you are truly blessed. Did you know that in 2005 the average American carried approximately $8,000 in credit card debt? Most everyone is living from payday to payday. If they miss one or two paychecks they are most likely headed to bankruptcy.

Living a debt free life is not easy, but it is one that we can all have with some discipline and effort on our part. Here are some quick tips on how to get out from under that mountain of debt in your life and begin to get on the road to a debt free lifestyle.

Getting Started

When you are just beginning to get out of debt remember to take things one-step at a time. It will not happen overnight. You can’t do everything all at once. Pick out one bill each month and pay more on it, or pay it off entirely. By taking this approach you won’t burn yourself out. It may seem at times like you’re not getting anywhere, but you really are. Think of this in the same context as dieting. You can’t lose 25 pounds in a week. It takes time, but if you stick with your diet, you will lose the weight.

Goals

Setting goals and making a commitment to sticking to them, are a big key to living a debt free lifestyle. Take the time to sit down and write out your financial goals. Let’s use grocery shopping as an example. Start by deciding on a weekly grocery budget. You then make your grocery list out for the week, clip coupons and only take enough money to cover what you budgeted. You will be amazed at the results.

People waste so much more money on things at the store they never intended to buy to start with. Grocery stores make this so easy to do. Another good point is to eat out less. Cook at home more often and spend time together as a family. Make up a weekly dinner menu and stick to it. Eating at home more and eating out less, will help you save more of your money.

Make Small Sacrifices

In order to become debt free you’re going to have to be willing to make some sacrifices. For example, you can simply bring your lunch to work instead of going out to the local burger joint every day. By just doing this you can save a great deal of money each week. This is just one example of many different things you can do to save money every month. Sit down with your spouse and make a list of your own. This can help you become debt free in a much shorter amount of time.

Put Away The Credit Cards

The single biggest key to becoming debt free is to put away all the credit cards. Instead of seeing something you want and putting it on a charge card, save the cash for it. You’ll be surprised at how this will change your priorities. It will eliminate a lot of the impulse buying. You feel like you have earned it by saving the cash and paying for it.

You may never be able to become totally debt free, but by following some of these tips you can take a very large step towards it. Have patience, stick to your plan and before you know it you’ll be in much better financial shape.

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IVA’s for the Self Employed

Dec 5

Posted by admin in Debt Consolidation, Personal Finance

NancollasGreer, IVA specialists, are often asked if self-employed people do an Individual Voluntary Arrangement? The short answer is yes.
When IVA legislation was written in the mid 1980s it was intended that an IVA would be used as a rescue tool to preserve businesses, both sole traders and partnerships, who up until then only had bankruptcy as a method for dealing with debt. Back then no one anticipated that it would be used for dealing with consumer debt to the extent that it is today.

An IVA can be a suitable for the self-employed however it does often require a greater amount of preparatory work than a straightforward consumer IVA and many of the larger IVA “factories” will not be geared up to deal with anything other than a straightforward IVA. This is where a boutique firm like nancollasgreer come into their own. The legislation demands that an IVA must be administered by a licenced Insolvency Practitioner (there are about 1,300 who take insolvency appointments in the UK today). NancollasGreer Insolvency Practitioner, Sarah Nancollas, has over 22 years insolvency experience and has been undertaking IVAs since the legislation was first introduced and has a vast knowledge of IVA solutions for the self employed.
Sarah Nancollas said “IVAs can be a really useful rescue tool for the self employed who, for whatever reason find themselves with debt problems, whilst running a viable business that has a future.”

As HM Revenue and Customs are likely to be a creditors one of the first steps is to ensure that any late accounts or tax returns are brought up to date and filed with HM Revenue and Customs as soon as possible. As a creditor they will almost certainly vote on the acceptance or otherwise of an IVA proposal. H M Revenue and Customs have issued guidance notes which state that they will vote in favour of IVA proposals where :
An optimised and achievable offer is made to the creditors.
Provision is made for payment of all future debts on time.
All creditors within the same class are treated equally.
There are no exceptional reasons for rejection.
You make full and honest financial disclosure
The above are no different to the requirements of many lending institutes and most of the above are required by the legislation to form part of an IVA.
Being self-employed you will need to demonstrate to your creditors, your ability to earn a living, with the use of up to date accounts.
H M Revenue and Customs will take a dim view, probably opting to reject an IVA in the event of any of the following:
You have deliberately defaulted or had a past association with a continuing insolvency.
You have operated a policy of withholding payment of Crown money.
You have failed to meet obligations under a prior IVA.
You have sought to exclude creditors.
Any purchaser of the business who assumes responsibility for payment of some of your debts rather than paying that money to the general body of creditors.

You have not brought all your tax and VAT returns up to date.
NancollasGreer feel that is it so important that people with debt problems get high quality professional advice before choosing a method to resolve their debts that they offer a free initial consultation. As part of the consultation NancollasGreer will review your financial position and discuss all options that are suitable for you. Their debt advice is tailored to the individual.

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Living on Debt in the 21st Century

Dec 5

Posted by admin in Debt Consolidation, Personal Finance

According to IVA specialists, nancollasgreer, debt is now a part of everyday life for most of us in the UK. The majority of us have credit cards, mortgages and loans. With offers of credit popping through our letterboxes virtually on a daily basis, coupled with the general ‘feelgood factor’ of rising property prices and low interest rates over the last decade, personal debt in Britain is increasing by £1million every five minutes.

Used wisely, credit can be a useful way to pay for emergencies or fund those little luxuries that would otherwise be beyond us in terms of cash readily available to spend at any one given time, and many people successfully manage their finances in a way that enables them to stick to repayment terms.
But what about those that don’t? Today alone in Britain, 7,716 loan repayments will go unpaid, 2,750 County Court Judgements (CCJs) will be issued and 77 properties will be repossessed.

The average person now sees over half (53%) of their net income eaten up by debt repayments and, according to uSwitch, 23% of Brits class their current level of borrowing as “no longer manageable”.

Many of these people will take out personal loans to consolidate their debts to make them more manageable by spreading them over a longer repayment period. Worryingly though, research commissioned by moneysupermarket.com shows that 66% of them will continue to incur further debt, not least the loan interest that will have been added to the amount borrowed to cover the original debts.

It is a road to disaster, debts start to spiral out of control and unfortunately many people, not knowing which way to turn, will simply do nothing and bury their head in the sand. “Robbing Peter to pay Paul” is common, but eventually lines of credit dry up (normally all at the same time because of the attempted juggling act in this scenario) and the proverbial hits the fan. Health and relationships begin to suffer. Research by the UK’s financial watchdog, the FSA revealed that finances are a taboo subject and 74% of couples said that ‘money worries’ was THE hardest subject to discuss with their partner.

Generally it is advisable for people to seek professional advice as soon as the financial difficulties occur, as this can sometimes mean that more options are available and cuts down the number of stern letters, phone calls (even to someone’s place of work) and doorstep visits that inevitably follow non payment.
If you are affected by debt in any way and would like a free, no obligation review of your financial situation, please contact NancollasGreer who are based in Worthing. They are fully qualified to advise on ALL of the options that are available to deal with debt and will explain the processes and pros and cons of each option in any given circumstances ranging from general friendly advice on how to deal with creditors up to formal insolvency procedures such as Bankruptcy and are specialists in a little known alternative to Bankruptcy called an Individual Voluntary Arrangement (IVA). An IVA is, in essence, a formal repayment agreement with creditors which allows interest to be frozen and in many cases a proportion of the debt to be written off in return for regular monthly payments over a fixed period and/or a lump sum in full and final settlement of a debt. Although some larger IVA companies use only questionnaires and computer software to calculate IVA solutions, the IVA company NancollasGreer believe that IVA proposals should be tailored to individual circumstances and will therefore speak to ALL clients to suggest which debt solution is best for their particular situation. NancollasGreer can be contacted on 01903 206555 and are happy to give advice either over the phone or at a face to face meeting if that is preferred.

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Remortgage for Debt Consolidation

Dec 4

Posted by admin in Bankruptcy, Debt Consolidation

One of the main reasons many people decide to turn to remortgage plans is for debt consolidation. And it is not difficult to figure out exactly why… in fact, you could probably guess. After all, a remortgage allows you to get a new mortgage at a new lender with a new, much lower interest rate. So why would not someone want to take advantage of such a prospect?

For an example of an individual who could make great use of a remortgage, see Angies story below. Though the exact players are fictitious, the scenario is repeated throughout the globe day after day.

Angies Story
Angie is a divorced single mother of two teens who works two jobs, but still has trouble paying the mortgage and all her other bills. Though she received her house as part of her bitter divorce settlement, she sometimes regrets the decision not to move or sell the place. However, at this point, shed rather stay where she is so her children wont have to change schools.
Her credit card bills have been mounting, and though shes just able to pay off the interest each month, shes never been able to touch the principle balance. Though her credit history isnt that bad yet it was a little damaged during the divorce, shes worried that, before long, shell end up skipping payments and ruining her credit report for the long term.

So… what is Angie to do?
For people in Angies position and at Angies stage of life, a remortgage can be an absolute saving grace. And a remortgage just makes a great deal of sense. For instance, in Angies case, a remortgage will most likely allow her to:
Consolidate her bills into one easy to make lump sum. Yes, she will still have to pay off the principle balances on her credit cards, but her overall payment will be smaller than before. This will allow her family to feel less as though bankruptcy could come at any time.

Become a better money manager for her family. A remortgage may even save her enough to be able to splurge now and then on her children. And her children will likely becoming better managers of their own finances, both now and later in life.

Start working on building her cache of money by herself. Many divorced, separated, and widowed women find themselves in the position to start making financial decisions that were previously made by the so called man of the house. A remortgage will enable her to start constructing her individual credit and will give her a much needed sense of self esteem.

Ironically, many gals like Angie do not even know about remortgage; thus, they do not turn to remortgage during times of fiscal crises. Hence, if you know someone in Angies position who could benefit from switching lenders and obtaining a lower interest rate via a remortgage, do not delay in telling them about this often used financial planning move. It could just give them the fiscal breathing room they need to start feeling healthier money wise.

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An Insight into Bankruptcy

Nov 30

Posted by admin in Bankruptcy, Real Estate

In the light of the recent global economic meltdown, bankruptcy is fast becoming one of the most controversial phenomenons. People all over the country are filing for bankruptcy and the number is only increasing with the passage of each day. In this article, we shall be looking into filing for bankruptcy as well as the advantages and disadvantages that have been associated with bankruptcy. Yes, it might be surprising to read about the advantages of filing for bankruptcy, but since many are resorting to such techniques these days, it must be given ample importance too.

A person usually files for bankruptcy in order to escape from the torments that will be imparted to him by the debt collectors. People may opt for debt; they are of the impression that taking debt might help them in the short term. However, when the tide turns against them, the days are merely filled with perils from the debt collectors. In order to escape from them people usually opt for filing for bankruptcy – as mentioned earlier. In fact, filing for bankruptcy has been found to be helpful in many other ways also. One of the pioneers among them is stress management.

Once someone files for bankruptcy, then the mental agony will be temporarily eliminated. This is because they can stand cause as being bankrupt. Many countries have their own policies with the help of which people who are filing for bankruptcy are helped. In here, an organization will take care of the debtor and will make sure that no form of harassment is being imparted to the person who has filed for bankruptcy. This is especially helpful because such organizations will keep a strict vigil over them. In some of the cases, there have been instances where the debtors will be made to pay only a part of the amount.

Mutual agreement will be reached in between the debt collector and the organization that is taking care of the matters. If the other party is not willing to lower the debt amount, then the duration will be duly extended. There are various options such as these that are executed, and the person who had filed for bankruptcy will be protected at all the times. The creditors will have to agree with the terms and conditions that have been put forth by the organization. This is another major advantage of filing for bankruptcy.

That does not necessarily mean that anyone can take loans and walk away scot-free. Certain types of debts have been excluded, that is someone will not be able to file for bankruptcy if he or she has taken a student loan. The same is applicable to the loans that are taken in the name of the company. The organization that is in charge of the entire scenario has the power to sell off all the property that has been possessed by the debtor, and the money accumulated because of this transaction can be used for paying back the debts.

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Dealing with Foreclosure

Nov 30

Posted by admin in Bankruptcy, Real Estate

Foreclosure is something that must be avoided in the strictest sense. Various options are available which will help a debtor in avoiding this phenomenon. It can induce emotional trauma in the minds, to see hard-earned money being wasted away due to court procedures. Sadly it is happening all over the world and the only method to avoid foreclosure is to be intelligent while making financial decisions. People are known to take extreme steps when they come to know that their property will be subjected to foreclosure in the coming days. In this article, we shall be looking into reasons why such situations must be avoided.

People usually opt for foreclosure because they are being too much taunted and tortured in the name of their debts. According to some, this will induce peace of mind – something that is temporary in nature. The long-term effects of this will be disastrous. Bad credit history is one of the primary reasons why such extreme steps might be taken by a court of law. It will be wiser to look into the consequences to have a better picture of scenario in the long-term. The credit score will be revised and any changes to it can be implemented only within seven years.

A process of foreclosure will be always maintained as a public record, and this data will be fed to a centralized database. Major Banks and other financial institutions are connected to this database, and if you try to apply for loans or any form of credits in any part of the country, there is a high probability that the request might be cancelled. Keep in mind that this step will never be ignored by the banks or financial institutions and they always resort to such steps to weed out people with bad credit history.

Once a bad credit history has been associated with your name, then it is tougher to get them removed. It is like a taint that can never be removed easily. If you are thinking of opting for foreclosure to escape from bad credit history, then you are doing it wrong. It will only add to the burden and this is one of the major reasons why it should be avoided. The regulations and the restrictions which are in place for such people is stringent in the strictest nature and even if loans or credits are granted, the interest rates will be always on the higher side.

This is because people with foreclosure histories are seen as potential risks by the lenders. Some people will always try to make a fortune out of the misfortune that is being attributed to you. If you are thinking of switching jobs in the light of foreclosure, then be warned that it is a foolish decision. Even companies have started seeing them as potential risk factor and will not grant any jobs to such people. Virtually everything in your life might come to a standstill; hence, it is better not to opt for foreclosure if possible.

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