credit card and personal loan default
2 months ago
Sir i AM Unable to payment above dues due to low salary
what is the process for filing insolvency can it be filed without lawyers help
A.If any one of the following three requirements is met, a person who is unable to pay their debts may file an insolvency petition:
1. Debts totalling over Rs. 500
2. The person is being held in custody or placed under arrest in order to carry out a money decree.
3. In carrying out the decree, there is an active order of attachment against his or her property.
A petition for insolvency is submitted to the district court that has jurisdiction over the debtor's place of residence or place of business. Wherever the debtor is being held, an insolvency petition may be filed if they have already been arrested or placed in jail. The Court may designate an interim receiver following the filing of an insolvency petition or prior to the issuance of an order. An insolvent person's property would vest in the official assignee or receiver upon the issuance of an adjudication order, and it would then be divided among the creditors.
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1. Debts totalling over Rs. 500
2. The person is being held in custody or placed under arrest in order to carry out a money decree.
3. In carrying out the decree, there is an active order of attachment against his or her property.
A petition for insolvency is submitted to the district court that has jurisdiction over the debtor's place of residence or place of business. Wherever the debtor is being held, an insolvency petition may be filed if they have already been arrested or placed in jail. The Court may designate an interim receiver following the filing of an insolvency petition or prior to the issuance of an order. An insolvent person's property would vest in the official assignee or receiver upon the issuance of an adjudication order, and it would then be divided among the creditors.
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A.Dear client,
In the prevailing situation, you may file for bankruptcy petition before the Court on your own without hiring the service of an Advocate with the permission of the Court if you find yourself capable fo the same. Under the Provincial Insolvency Act, 1920 (which is now repealed as IBC Code 2016), you can file for bankruptcy if you are unable to repay a debt greater than ₹500. After analyzing whether the conditions for filing for bankruptcy have been met, the court may accept or reject the application. But, in the absence of any property/assets, your insolvency petition may be rejected by the Court. Alternatively, you can try to negotiate a debt settlement on your own if your pocket permits to repay the entire outstanding at a time for a one-time settlement of dues, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with any fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Finally, when you settle a debt with a credit card company, your account is closed once the settlement is complete. So you could potentially have no credit facility to use a credit card further owing to your poor credit score. Further, a quick counselling session with a certified credit counsellor can help you to discover your options and choose the right path forward to settle the debts/loan with the Bank.
In the prevailing situation, you may file for bankruptcy petition before the Court on your own without hiring the service of an Advocate with the permission of the Court if you find yourself capable fo the same. Under the Provincial Insolvency Act, 1920 (which is now repealed as IBC Code 2016), you can file for bankruptcy if you are unable to repay a debt greater than ₹500. After analyzing whether the conditions for filing for bankruptcy have been met, the court may accept or reject the application. But, in the absence of any property/assets, your insolvency petition may be rejected by the Court. Alternatively, you can try to negotiate a debt settlement on your own if your pocket permits to repay the entire outstanding at a time for a one-time settlement of dues, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with any fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Finally, when you settle a debt with a credit card company, your account is closed once the settlement is complete. So you could potentially have no credit facility to use a credit card further owing to your poor credit score. Further, a quick counselling session with a certified credit counsellor can help you to discover your options and choose the right path forward to settle the debts/loan with the Bank.
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