Debt

In both Chapter 7 and Chapter 13, interest and penalties are often treated the same way. However, there are certain changes in the precedence of debts, which we’ll explain in more detail. Penalties for unpaid taxes can be canceled. If the IRS or another taxing authority has not secured the obligation through the filing of […]

Federal and/or state income taxes are the source of the debt. Bankruptcy cannot erase other taxes, such as fraud fines or employee payroll taxes. The debt must be a regular tax payment to the state or federal governments, in other words. When Can IRS debt be discharged in Chapter 7? The IRS places a high

If you don’t pay back your debts, you won’t be sent to prison. Can you get imprisoned for not paying debt? When you can’t pay your credit card bill, will you be sent to prison? To put it simply: No. “non-payment of debts are exclusively civil in nature and cannot be a basis for a

Most people don’t understand that they can be made to pay off the debt of another person’s credit cards. It’s feasible to assume that risk without knowing the repercussions, even if it’s unusual. When are you accountable for someone else’s debt? You can be held liable for someone else’s debt in three different ways: When

CFPB estimates that a borrower’s debt-to-income ratio (DTI) must not exceed 43 percent in order to qualify for a mortgage. A borrower’s debt-to-income ratio (DTI) might be as high as 50 percent in some situations, depending on the loan arrangement. Can I refinance my house with high debt-to-income ratio? Wells Fargo Home Mortgage in Columbia,

After a debt has been transferred to collections, you may still be able to negotiate a repayment plan with the lender. Rather than dealing with debt collectors, working directly with the original creditor can be advantageous. There are times when your initial loan provider offers you the option of paying less or forgoing interest entirely

If your student loans are in good standing and you are making on-time monthly payments, you usually cannot settle. Even if you’ve been a bit late on your previous payment, you’re normally ineligible until your loan has been declared in default. When negotiating a settlement, lenders normally won’t settle until they’ve exhausted all of their

As long as the debt is manageable, it isn’t a concern. If you’ve got a lot of debt and a poor history of paying it back, you may not be able to get a mortgage at all because of this. How much debt can I have and still get a mortgage? The debt-to-income ratio is

They also don’t want you to know that a creditor who successfully sued you for non-payment can’t use a judgment against you to continue collection efforts outside of your state. In order to transfer the verdict to another state, the process is extremely time-consuming and expensive. Can debt be collected from another state? Because California

If a creditor was garnishing your earnings prior to your job loss and you were getting unemployment benefits, you may be wondering if your benefits could be garnished. In a nutshell, your unemployment benefits are generally immune from being garnished. A creditor, on the other hand, may be able to garnish your benefits if you