Consumer Credit Counseling non Profit

Non-profit Consumer Credit Advice

The CCCS is a non-profit organization. They can search for non-profit credit counseling agencies. The Delray Credit Counseling Corp. is a non-profit educational service dedicated to providing financial education and resources to consumers.

Alternative to insolvency

Occasionally I will see a prospective customer who is not a good prospect for a petition for bankruptcy. Thus, for example, the prospective customer could not pass the "neediness test" pursuant to 707 of the German Insolvency Act. Alternatively, a petition for insolvency will not resolve the main issue of the prospective customer.

Thus, for example, most of the debts of the prospective customer may be due to a students loans or a non-deductible income taxes. Alternatively, the vast majority of a prospective customer's debts could be a guaranteed one - that is, a liability for which a home or car is a security. Which possibilities are there for the prospective customer who is not a good bankrupt?

According to 523(a)(1) of the Insolvency Statute, only a restricted kind of liability is deductible in the context of an insolvency application. In order to be substantially taxable, an initial statement of revenue must be made. Furthermore, more than three years after the submission of the declaration, insolvency must be submitted for the relevant basic duty.

If an application is submitted belatedly, the income will not be tax-deductible unless insolvency is submitted more than two years after the date on which the applications are made. Lastly, in order for the deduction to be effective, insolvency must be submitted 240 working days after the date on which a levy is imposed.

"Fiduciary fund" taxation is never deductible in a chapter seven collapse. Alternatively, if insolvency is not an optional solution, the customer could consider an instalment arrangement with the IRS; a compromise bid; or trying to persuade the IRS that the IRS should be placed in "currently uncollectible" state.

Instalment payment agreements. They are approved by § 6159 of the Internal Revenue Code. IRS may conclude a payment instalment arrangement in writing which allows the customer to fulfil its obligations over a specified timeframe. A instalment payment arrangement is permissible if a tax payer has no wealth to meet a duty, but has a constant stream of available earnings.

The IRS considers the taxpayer's total personal earnings less expenditure and other allowances, inclusive of maintenance and children's allowance, when calculating the amount of the periodicity. To conclude an installment contract, the customer would have to draft a 433-D installment contract for the customer. Furthermore, the customer would probably have to fill in a 433-A sheet titled "Collection information card for employees and self-employed persons", 433-B, "Collection information card for companies" or 433-F, "Collection information card" (short sheet).

One of the advantages of an instalment agreement is that the IRS does not take any further steps during the term of the instalment agreement (e.g. seizure of wages). Punishments and interest remain due during the instalment agreement. Payment made under an instalment payment agreement shall be deducted from the final contractual fine or interest before being added to the outstanding amount.

And while the IRS may not be allowed to collect on any of a taxpayer's property while an installment payment arrangement is in force, the IRS may nevertheless submit a notification of the federal lien to safeguard the government's interests. Bids in compromise are approved by § 7122 of the Internal Revenue Code. A compromise proposal is a letter of understanding between the IRS and a payer that allows the payer to make a smaller payment to fully satisfy the payer's total income withholding.

IRS considers the taxpayer's working capital, ongoing earnings, prospective revenues and eligible expenditures. If, for example, it seemed that a prospective customer would never be able to settle the debt, but if a relation who owed nothing to the IRS was able to raise funds to settle the IRS (and therefore paying under the bid was in compromise cash that the IRS otherwise could not get), then the IRS would consider a compromise bid.

I once had a customer who was handicapped; who was not eligible for Worker's Compensation and whose dad (who owed nothing to the IRS) volunteered to settle a small portion of the son's IRS bill if the IRS accepted the compromise bid. For the IRS this is called a "Code 53.

" As an example, I had a customer who was 63 years old, had serious health problems, and it was clear that the customer could never even make a cut in his or her taxation. Note, however, that when the next declaration is submitted by a taxable person, if the declared revenue is higher than the amount encoded, the collection services bank is reissued.

According to 523(a)(8)(B) of the German Insolvency Act, study credits can only be declared bankrupt if the borrower can prove that the borrower would be "subject to unreasonable hardship". Whilst the term "unreasonable hardship" is not included in insolvency law, most jurisdictions have adopted the "Brunner Test" on a case titled Brunner v. New York State Higher Education Services Corp.

The Brunner test would require a debtor attempting to redeem a student loan to demonstrate that (1) due to ongoing revenues and expenditure, the debtor is unable to sustain a "minimum" level of subsistence for himself and his family if compelled to pay back the credit; (2) there are extra factors suggesting that this condition is likely to continue for a substantial part of the redemption term of the loan; and (3) the debtor has made a good-faith effort to reimburse the credit.

Under certain conditions, up to and beyond employment, a prospective customer with mainly study credits could aim for a postponement. As an alternative, the customer can see whether he or she would profit from the income-based redemption plan. The authorization for the income-dependent redemption plan is defined by the borrower. Finally, a customer could try to solidify students' mortgages in order to reduce his/her periodic repayments by adding several mortgages to one package deal and prolonging the payback time.

In the event that a students credit is already in arrears, the authorities have extensive enforcement authority, including: seizure of the client's return; seizure of a part of the client's salary; use of a part of certain state pension services, such as social security; or legal action against the customer in the courts. Lawsuits for the recovery of German study credits are not subject to a limitation period.

One customer could try to "rehabilitate" the cancelled students loans, which would involve concluding an arrangement and making at least nine qualified, punctual students credit repayments. When the customer's debt is primarily mortgages and the customer is not qualified for insolvency, the customer should ascertain whether he is qualified for a change in mortgages, either through the Home Affordable Refinance Program (HARP), the Home Owner Affordable Amendment Program (HAMP) or a personal change.

Customer may draw on Hydrop if (1) the hypothec is held or warranted by Freddie Mac or Fannie Mae; the hypothec was previously disposed of to Fannie Mae or Freddie Mac on or before 31 May 2009; the hypothec was not previously funded under Hydrop unless it was a Fannie Mae Hypothec that was funded under Hydrop from March to May 2009;

Customer should consult its creditor to check whether it is eligible for a HAMP change. An uncovered sale means a purchase of immovable assets where the sales revenue is less than the amount of the mortgage or other pledge on the immovable, but the holders of the pledge agreement have agreed to relinquish their pledge on the immovable and to pay less than the amount due.

Prospective customers who are not able to declare themselves bankrupt can take advantage of credit advice from a non-profit organisation such as a consumer credit bureau. In general, the customer will meet with a consumer credit advisor, develop a household plan, and then the customer will contact the lenders (usually a credit bureau ) to try to reduce the debts, make making money more accessible, lower the interest rates on the debts, or a mix of the three.

Firstly, the prospective customer must ensure that the services are a genuine non-profit organisation (e.g. a United Way agency). Customer is asked not to do anything. A number of customers came to my offices after I made an agreement with a rough "service" only to find that they had been taken to court by the credit cards group.

North Carolina has only one real "consumer credit advisory service" that can "customize" the customer's level of indebtedness before the customer is included in a corporate or legal loan agreement. Pardon the forgiveness of servicing the indebtedness. That is another thought when dealing with any kind of indebtedness.

If a creditor chooses to waive all or part of a liability and accepts less than what is due, the amount awarded is regarded as revenue for the debtor and subject to tax. It is the exemption established by the Mortgage Debt Relief Act of 2007 and is applicable to most home owners.

Under the Mortgage Forgiveness Debt Relief Act, debts waived between 2007 and 2012 are covered. Until 2 million dollars of waived debts are possible for this exemption. Insolvency - Debts settled by insolvency are not deemed taxpayable assets. If the tax payer is unable to pay at the time of remission, part or all of the terminated liability may not be subject to tax.

Specific agricultural debts - If the tax payer has accumulated the debts directly on the holding of an agricultural holding and more than half of the taxpayer's previous three years' revenue comes from agriculture and the credit was due to a regular creditor or credit institution, the waived debts are generally not regarded as taxpayable revenue.

Irrecourse credit - A non-recourse credit is a credit where, in the event of delay, the creditor only remedies the situation by taking back the object that has been funded or used as security. Under a non-recourse credit, the creditor cannot take the debtor to court in person in the event of delay. The waiver of a non-recourse credit resulting from a levy of execution does not lead to a waiver of proceeds from debts.

For the purpose of complying with certain IRS rules relating to taxation consulting, we hereby notify you that, unless otherwise specifically indicated, all taxation consulting services included in this blogs are not designed or written and cannot be used (i) to avoid Internal Revenue Code fines; or (ii) to promote, market or recommend to any other person any transactions or matters referred to herein.

According to the Bundeskonkursgesetz this is a statement that we are a credit rating institution. Helping those who go bankrupt under the German Insolvency Act. G. Martin Hunter is Charlotte, NC insolvency lawyer with expert knowledge in debtor/creditor issues. Provides insolvency counseling in Charlotte and throughout western North Carolina.

G. Martin Hunter is accredited as a specialist in commercial and consumer insolvency law.

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