Imagine this worst case scenario for a moment – hopefully it’s not something you have first-hand experience with. The bills are piling up on your doorstep and your creditors are knocking at the door. Unfortunately, you don’t have any money to pay off your debts. Though you seem to be at a dead end, there’s still one stop-gap measure you can use: bankruptcy.
Keep in mind, though, that there are many conditions and responsibilities associated with bankruptcy. It is only an appropriate course of action if you really are desperate to end your cycle of debt. If you’re considering it as an option, you need to be sure of the facts.
In order to be declared bankrupt, either you or your creditor could request for the Courts to make your bankruptcy order. For self-requested bankruptcy, you’ll need to fill out a couple of forms: the petition and the statement of affairs. After completion of the forms, you can pass your bankruptcy petition to your local county court. You’ll also have to pay some fees when you submit your petition. Read More
When you file for bankruptcy protection, you are required to claim all of your unsecured debts. Bankruptcy, however, does not allow the debtor to claim outstanding pay day loans in their filings. Although these loans may be considered small personal loans, they are not viewed as unsecured debts.
What Exactly Is A Pay Day Loan?
Pay day loans, which are often referred to as cash advance loans, are a unique type of lending instrument that has gained popularity in the last 10 years or so. In most cases, the borrower does not have to be approved to receive a loan. The borrower must simply provide proof of income to qualify.
Because these loans must be repaid in less than 30 days, they do not fall under the regular banking regulations that other small personal loans do in the finance industry. In addition, because these loans are backed by a personal check, or your next pay check, they are technically a secured loan. Since these loans are secured by your next pay check, or the fact that you have left a personal check at their business for deposit in the event you do not repay, they will not qualify as unsecured debts in the bankruptcy court. Read More
Do you have debt problems? If so, welcome to the club. Debt has become a part of life for most of us in the UK. It’s nothing new that borrowers, especially those on low incomes with high levels of debt, are falling behind. Rising utility bills, unemployment and unexpected shocks such as divorce were also blamed for causing 7.7 per cent of mortgage borrowers some serious financial difficulties in recent research.
Since the economic downturn of 2008-2009 all over the world, people have naturally been reminded of the potential consequences of letting debt get out of hand. As the global economy has recovered, most countries have been forced to take a look at their spending and prioritise getting their debts organised. Individuals and businesses have also learned to develop their skills at managing money amid the threat of another widespread economic disaster, but are we really able to move on entirely for a life based around debt if we still want to succeed in business and our personal lives? Read More
Managing your own debts, credit rating and so on can be tricky for some people. If you own a business, it’s probably essential for you to take on some more complex debts, so this is a whole other challenge. Taking it another step further is where even the most organised business owners can come unstuck: handling debts owed to your business by other companies. This area is a minefield and can often feel completely out of your own control. Even if you prepare for the possibility of having debts not repaid on time, it ultimately depends on the other party, even though the consequences might be felt by your own business. To an extent, commercial debt recovery agents can offer a highly valuable service to businesses in exactly this position.
It’s not just banks and loan companies that end up spending much of their time and effort chasing up money that’s owed to them by debtors. Unpaid debts can affect many types of businesses, especially where the customer has had the products or services on credit. Establishing some trust with clients before offering this is crucial, but in many cases there are simply unforeseen circumstances involved. Financial trouble with one company can trigger a chain reaction as a series of debts cannot be paid on time. This can cause no end of problems for businesses who find themselves unable to keep cash flow running properly due to the failings of a customer they trusted to pay on time. Read More
If you find yourself struggling or unable to make your repayments, a debt management program may be a great option for you. As critical as it may sound, it is simply managing what you owe through a well designed program.
For a nominal fee, there are many financial institutes, banks and organisations that specialise in a debt management program, which can offer you a plan. They will combine all your existing payments into one manageable repayment. This is not a debt consolidation loan, rather your manager works out a plan with your lenders to see how much they will allow you to pay, and how much money you have to pay off.
If your debts are a result of personal financial liabilities as a sole trader, look for specialised debt consolidation agents. Your solicitor and company formation or registration agent should have more information regarding the details of your venture and should therefore be present during the negotiation.
Although a debt management plan is not a loan, in many cases it might require one to consolidate and manage all existing ones. Read More