Bankruptcy Debts – Debt Consolidation Care & Advice
Author: Paul Liddy
The American Heritage® Dictionary of the English Language defines debt as ‘an obligation or liability to pay or render something to someone else’ while West’s Encyclopaedia of American Law defines the term thus ‘a fixed and certain obligation to pay money or some other valuable thing or things, either in the present or in the future. In a still more general sense, that which is due from one person to another, whether money, goods, or services. Also, sometimes an aggregate of separate debts or the total sum of the existing claims against a person or company.’ Thus we see that whatever the source used, a debt is actually a liability. If you have any unpaid money for any goods or rendered services, you are in debt. Remember, even the unpaid amount on your credit card is a debt. Debts are of two types –
- Unsecured debts – These are the debts in which no specific assets have been shown as collaterals. Credit card debts, bank overdraft and outstanding rent etc. come under the purview of this term
- Secured debts – Obviously, the debts in which collateral are involved are called secured debts. Examples of this type of debts are car loans, home loans and the like.
If you are steeped in so much debt that it has become impossible for you to pay up your creditors, you have the option of filing for bankruptcy. You can either file for bankruptcy yourself or be forced into doing so by your creditors. Remember that filing for bankruptcy does not absolve you of all your debts. The court will appoint a trustee who will determine how best to recoup the amount owed. This is done based on your earning capacity and other parameters. Although bankruptcy looks like an attractive option in case of debts, it actually entails a lot of legalities and thus should only be used as a last resort in extreme cases.
If you are looking for a way out of the debt trap you have fallen into, just visit www.debtescape.com.au. The site is managed by Credit Counsellors Australia, a subsidiary of SRMC Limited and also one of the most reputed companies providing insolvency service for individuals in Australia.
Their team of insolvency counsellors, who are all tertiary qualified in accounting, can provide you the best advice on how to consolidate your debt and get a debt agreement. These professionals specialise in bankruptcy debts and bankruptcy credit counselling and will be able to take care of all your debt consolidation needs. The site www.debtescape.com.au also has tips and advice on debt consolidation care, bankruptcy, debt agreement and consolidation personal loans.
Article Source: http://www.articlesbase.com/debt-consolidation-articles/bankruptcy-debts-debt-consolidation-care-advice-843285.html
About the Author
Paul Liddy worked as a banker for 12 years before retiring to take up writing full time . This experience provide him with an insight into all matters financial, helping him to write such article.
How will my parents bankruptcy affect their debts with me?
In the past I took on some of their debt as they had trouble getting credit. This debt is held on credit cards which they and I have been paying off over some time.
They are likely to be forced to file for bankruptcy soon, therefore my question, what will happen to the debt on the credit cards which are under my name?
Will these be covered as I am a creditor to them?
PLEASE ONLY ANSWERS FROM PEOPLE WITH EXPERIENCE IN THESE MATTERS.
(a moral lecture is neither constructive nor desired)
Thank you.
I don’t live at home.
I can provide proof of balance transfers from their account to mine.
How does a bankruptcy in Ireland affect debts created in the United States?
Some types of debts are not dischargeable in the US such as student loan debts. Some are easily discharged such as credit card debt. How does a bankruptcy in the Rep of Ireland affect foreign debts?
How can git out of debts other than bankruptcy ,debt consilidation,or turning my back to creditors?
What happens to joint debts under bankruptcy?
I went bankrupt 2 months ago. All creditor letter have been sent to the official receivers. Although one of the debts was a joint debt with my husband. The creditor is now chasing my husband for the outstanding amount. Is this right? Or should half the debt be written off under the bankruptcy?
is the united states the only country that forgives debts through bankruptcy?
someone close to me is filing bankruptcy and i want to do all i can to help her feel better about it. i want to say at least in the u.s. there is a forgiveness type law, in other countries debts can’t be discharged. is this true? what other positives can i say to her to comfort?
They can not go after you for the debt. But since he didn’t file Bankruptcy, they can and will go after him. And they can and will go after the full amount of the debt.
I would tell someone that in today’s economy, it’s not unusual for people to be filing. And just because you are filing doesn’t mean that down the road, if you are ever able to, you could always pay back the debts that were discharged. And I would also tell someone that if they are concerned about filing and feel bad about it, they’re the type of person this was meant to be for. (Someone who is honest and genuinely doesn’t want to just not pay their debts.)
Pay your bills.
ok, I had similar situation when I went bankrupt because I had borrowed money of my parents the year before to pay a rent deposit when I moved house. Although I had paid some of it off, I still owed them approx £1,000.
so, to the question, assuming the credit cards are in your name…
The money they owe you needs to be included (by them) in their bankruptcy petition. This is so thaat if they win the lottery while bankrupt, you will get something back.
If they are given bankruptcy then their assetts will be sold and the money used to pay off their debts pro-rata. So you will get some of it back, but not all of it.
Legally the credit card debt is in your name, so it is your problem, it cannot be written off in their bankruptcy, so you will still owe it to the credit card company.
If your parents say “this is a debt of honour” and pay you back, in preference to other creditors, once they are bankrupt then they will be breaking the law and liable to criminal prosecution.
That, of course, doesnt stop them paying you back once they come out of the other end, although legally (but not morally) they will have no reason to.
I dont know what kind of relationship you have with them, it must be pretty good for you to have covered some of their debts in the first place. So hopefully they will be OK about it and pay you back after the bankruptcy ends.
(for the record I paid my parents back every penny AFTER my bankruptcy was over).
and an aside for anyone else reading this who is in the position I was in, get your parents to put a codicil on their will, preventing you getting it all, giving it to someone they can trust to give it back to you at the end of your bankruptcy. Otherwise if they were to die your creditors would get your inheritance, not you. When your bankruptcy is over they can remove it again.
NO EFFECT AT ALL BOTH DIFFERENT COUNTRIES WITH NO CONNECTIONS IN THIS TYPE OF THING AT ALL
NO COUNTRY CAN IMPOSE ANY LAW IN ANOTHER COUNTRY
IF YOU BANKRUPT IN ONE COUNTRY YOU WILL STILL OWE MONEY IN THE OTHER