A.Dear Client,
Under the now-repealed Provincial Insolvency Act, 1920 (replaced by the IBC Code 2016), bankruptcy filings were possible for debts exceeding ₹500. However, if you lack assets, your insolvency petition may be dismissed. Alternatively, negotiating a debt settlement is an option, either independently or through a debt relief company. Such negotiations involve offering to pay a fraction of the outstanding balance in return for forgiveness of the remainder, typically starting at around 25% to 30%. It's essential to verify the legitimacy of debt relief companies to avoid scams. While debt settlement can alleviate financial burdens, it impacts credit scores, potentially leading to difficulties in obtaining credit or favorable interest rates in the future. Additionally, tax consequences may arise from settled debts, and closed accounts can limit future credit card use due to poor credit scores.
Under the now-repealed Provincial Insolvency Act, 1920 (replaced by the IBC Code 2016), bankruptcy filings were possible for debts exceeding ₹500. However, if you lack assets, your insolvency petition may be dismissed. Alternatively, negotiating a debt settlement is an option, either independently or through a debt relief company. Such negotiations involve offering to pay a fraction of the outstanding balance in return for forgiveness of the remainder, typically starting at around 25% to 30%. It's essential to verify the legitimacy of debt relief companies to avoid scams. While debt settlement can alleviate financial burdens, it impacts credit scores, potentially leading to difficulties in obtaining credit or favorable interest rates in the future. Additionally, tax consequences may arise from settled debts, and closed accounts can limit future credit card use due to poor credit scores.
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A.Dear Sir,
If you are unable to pay EMI and EMI paid is less than 20% of the total cost then find out a purchaser and transfer the same to him.
If you are unable to pay EMI and EMI paid is less than 20% of the total cost then find out a purchaser and transfer the same to him.
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A.Dear Client
If you are not able to pay the EMI then get in touch with the bank and seek one time settlement (OTS) with the bank to close the loan account.
If you are not able to pay the EMI then get in touch with the bank and seek one time settlement (OTS) with the bank to close the loan account.
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A.Dear Client,
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.
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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