I need to take a little detour here and talk about payday loans. If you have a steady job, a payday loan can get you through a short term money crunch, but there are a few things that you need to be aware of.
A payday loan is expensive. The interest on payday loans is quite high and the amount of time you have to pay it back is short, usually 18 days or less. Payday loan companies will determine the pay back date by the date your are to receive your next paycheck.
The amount you will be able to borrow will depend on your state. In some states you can borrow as much as 1500.00 until your next paycheck but in California there are laws which prohibit payday loan companies from lending you more than 300.00 at a time.
If you do decide to take out a pay advance, make sure you are dealing with a licensed (in your state) payday loan company. It is easy enough to verify online. There are some predatory out of state companies who do not have legal license to do business in your state that will lend you money and require an outrageous payback.
Desperate people sometimes agree to outrageous terms but the truth is that these unlicensed loans are illegal. Pay back the principal but they have no legal legs to collect more than that.
You don't have to trust me on this (always verify everything you read on the internet) but know that I tend to learn things the hard way.
And good luck to you. I want nothing but the best for all.
ep
Monday, January 31, 2011
Friday, January 28, 2011
Debt Settlement Tax Fact
This is just going to be a short post because I just read something about debt settlement and this thought floated to the top of my head.
Did you know that whether you use a debt settlement company or settle debt on your own with your creditors, you may have to pay tax on any amount that is forgiven? Your creditors are required to supply the IRS with a 1099 if the forgiven amount is 600.00 or greater.
Reputable debt settlement companies will tell you this but others may not or they may totally play it down.
Creditors definitely won't tell you this so you need to be aware of it when weighing your financial options.
Good Luck To You!
ep
Did you know that whether you use a debt settlement company or settle debt on your own with your creditors, you may have to pay tax on any amount that is forgiven? Your creditors are required to supply the IRS with a 1099 if the forgiven amount is 600.00 or greater.
Reputable debt settlement companies will tell you this but others may not or they may totally play it down.
Creditors definitely won't tell you this so you need to be aware of it when weighing your financial options.
Good Luck To You!
ep
Thursday, January 27, 2011
The Bankruptcy Trustee
Who is the bankruptcy trustee? Basically.......
A chapter 7 bankruptcy trustee reviews your chapter 7 bankruptcy, making sure everything is in order, and liquidates the eligible assets of your estate. But, as I have stated before, the liquidation of assets is not that common so don't freak out. This bankruptcy trustee also presides over the 341 hearing (meeting of the creditors--more about that later).
If you have a simple chapter "no-asset" case, you won't have much dealings with the bankruptcy trustee. I saw mine only at the 341 hearing and he asked me questions for less than five minutes.
A chapter 13 bankruptcy will review your chapter 13 bankruptcy, and determine a payment plan for you, ensuring that you will be able to meet your obligations under the plan. He will oversee this payment plan for it's duration.
It sounds intimidating but really, if your bankruptcy is on the up and up, you shouldn't have to worry about the bankruptcy trustee. Bankruptcy is not as scary as you've been led to believe.
Good luck to you!
A chapter 7 bankruptcy trustee reviews your chapter 7 bankruptcy, making sure everything is in order, and liquidates the eligible assets of your estate. But, as I have stated before, the liquidation of assets is not that common so don't freak out. This bankruptcy trustee also presides over the 341 hearing (meeting of the creditors--more about that later).
If you have a simple chapter "no-asset" case, you won't have much dealings with the bankruptcy trustee. I saw mine only at the 341 hearing and he asked me questions for less than five minutes.
A chapter 13 bankruptcy will review your chapter 13 bankruptcy, and determine a payment plan for you, ensuring that you will be able to meet your obligations under the plan. He will oversee this payment plan for it's duration.
It sounds intimidating but really, if your bankruptcy is on the up and up, you shouldn't have to worry about the bankruptcy trustee. Bankruptcy is not as scary as you've been led to believe.
Good luck to you!
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