If your debt has been forgiven, you may be wondering if or how it impacts your tax obligations. The IRS considers any cancellation of debt as ordinary, taxable income. Although forgiveness of debt on a Form 1099 comes with tax consequences, there are some exceptions and exclusions. Today, we will take a look at debt forgiveness income and its...
Continue ReadingBankruptcy is a powerful tool for improving your spot in life. If you’re struggling to pay your bills, exhausting your savings, and dodging collection calls day and night, you might have options. For the right individual, there can be several advantages to filing bankruptcy in Hawaii. This can help eliminate the amount you owe and give you a fresh...
Continue ReadingWhat Can Happen If I Fall Behind on Debt? If you fall behind on a debt, the creditor has several options to collect: They can engage in its own collection efforts Enlist a third party to collect on its behalf, or Sell the debt to a debt buyer who would then step into the shoes of the original creditor....
Continue ReadingBankruptcy Can Give Debtors a Fresh Start It’s always in the back of our client’s minds on the eve of filing bankruptcy. What sort of interest rates will I get when applying for a future car loan? Will I ever qualify for that home loan? Are credit cards going to be beyond my reach for the next 10 years? These...
Continue ReadingCreditors have a variety of methods at their disposal to collect debts in the form of levies, liens, and garnishments. These processes can leave debtors feeling like unprotected divers swimming in a sea of sharks! Thankfully, the bankruptcy code offers a proverbial shark cage to protect debtors and their property in the form of an automatic stay. It’s this protection...
Continue ReadingDebt Personal User Personal interest rates for consumers are very low right now. This provides an incentive for all of us, in an attempt to achieve a cheaper interest rate and lower total charge, to take advantage of refinancing our personal loan debt. The phrases debt restructuring and debt consolidation used interchangeably are common to hear, but they are...
Continue ReadingHow Bankruptcy Affects Your Credit? Bankruptcy filings have a significant detrimental impact on the credit and one that will last for years. That’s how your creditors are never going to collect all the money you owe them, and they’re not going to receive any. To put it plainly, having a bankruptcy on your financial history makes it even more...
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