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Written by Jon Arnold
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Tuesday, 02 September 2008 |
The phone rings and it's yet another creditor wondering when you are going to make a payment on your past due account. This is really getting old for you, but what are your options? You have a ton of debt and are going further down a financial hole every month, where your bills are starting to become more than your net income.
You may have thought about filing bankruptcy. Don't do it. Bankruptcy should be your last possible resort option, not one that you seriously consider until you have thoroughly investigated all other possible options.
More and more people who are finding themselves in this situation with the sad shape of today's economy. Things may look brighter for the future, but to get to the "future", you need to successfully get through the present first, hopefully without doing severe damage to your credit report before you get to that "future". You may have considered a debt consolidation loan, but the downside of that is that it is yet another loan and you are pretty much borrowing from Peter to pay Paul, and the interest rate that Peter is charging is going to be sky-high if you have been having financial problems for awhile since that fact will be reflected on your credit report.
Although it may sound like the same thing, you may want to consider debt consolidation services, which is different from a debt consolidation loan. With this type of service, you turn all your bills over to the debt consolidation company and they work with you to establish a budget that you can live with. It is not another loan and it is not bankruptcy, so your credit report is not going to suffer nearly from the long term damage that a bankruptcy filing would have on it.
What happens is that you make monthly payments to the debt consolidation service company and then they distribute that payment to your creditors. It is crucial for you to note that if you miss the payment to the debt consolidation company, then they will not make a payment to your creditors, which is going to put you in an even worse situation than you are now, so make sure you make that payment every month.
On your behalf, the debt consolidation service works with your creditors to lower your interest rate, reduce your payments, and sometimes can even get all those pesky late fees waived or reduced. The end result for your benefit is that if you had, for example, $2700 a month going out before to make payments to your creditors, your payment to the debt consolidation company might only be $1800. These are example figures but the point is that your monthly output is significantly reduced, which should give you the financial breathing room you need while you get your financial house in order.
Seriously consider a debt consolidation service and allow yourself to get back on the right financial track, and even be able to answer the phone again and have it be someone other than another creditor!
About the author For more insights and additional information about a Debt Consolidation Service as well as getting a free no-obligation quote for debt consolidation services for you, please visit our web site at http://www.debtconsolidationstrategies.com |
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Last Updated ( Tuesday, 02 September 2008 )
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Written by Mansi gupta
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Tuesday, 02 September 2008 |
The IRS does give you ample warning that they intend to levy your bank account. You undoubtedly received the notice and demand for payment from the IRS which included the amount you owed in back taxes. You probably did not contact the IRS at that time, and that was very important. The next communication you received was called the Final Notice which did express their Intent to Levy and also included a notice of your right to a hearing after the levy has been placed. That final notice arrives 30 days before the IRS actually talks with your bank and proceeds with freezing your accounts. It comes in the form of a certified letter directly from the IRS. If you are now facing the impending crisis of the IRS bank levy, then you have obviously procrastinated the handling of your IRS past due tax problem (probably because you did not have the money to pay the back taxes). All is not lost and it is still possible to stop the IRS levy. However, the time to act is right now. You need fast, professional tax debt help and you have just 21 days to get this handled, and the clock is counting down each day!
An IRS levy is clearly one of the most powerful collection tools in the IRS arsenal and the IRS bank levy can be incredibly frightening when the freeze is actually implemented. Once the IRS freezes your bank account, you have no access to your funds. They are waiting for the 21 days to expire before they withdraw these funds to pay your delinquent tax debt bill. Any personal bills that you have that need to be paid in this timeframe will not get paid. In fact, you will probably be hit with insufficient funds fees and the refusal of any preset automated debits you have set up on your account to pay for goods/services. Even the newly deposited funds that come in as paycheck direct deposits will be frozen once they are received by your bank! The IRS intends to be paid the back tax money that you owe, one way or the other. Keep in mind that your bank is required by law to comply with the IRS bank levy and hold all funds that have been deposited into your bank accounts. They will not be able to provide you with any tax debt help in this matter.
During the 21 day period, it is now prudent to seek expert IRS tax debt help so that a tax attorney or tax specialist is able to negotiate with the IRS to release the funds. Unless an IRS bank levy release is obtained, once the 21 day period has expired, the bank sends the money to the IRS and you will never get it back. You may also consider contacting the Taxpayers Advocate in your area. This would require you to complete paperwork to prove economic hardship in hopes of having the IRS bank levy lifted or released. Time is of the essence and your financial future does hang in the balance.
Other Important Things You Need to Know About an IRS Levy:
How does the IRS know where I bank? The IRS knows your banks accounts from the 1099s that are filed every year with your tax returns. Even if your tax returns are unfiled, they have still received those 1099s from the financial institutions themselves.
What other accounts might be affected? Certificates of Deposit and any account where you have your name and social security number listed. Keep in mind that if you have joint accounts for whatever reason, with family members or even friends, those will be subject to the IRS bank levy also.
What types of accounts are excluded from an IRS Levy? Life Insurance, Workers Compensation, Benefits received from the Department of Veterans Affairs, and Scholarships or Grants.
Will the IRS levy both my bank account and my wages too? The IRS does not typically levy both your bank accounts and your wages. They intend to be paid for your delinquent taxes, but they must leave you just enough to live on, and while they can enforce an IRS levy on your wages and your bank accounts, they dont tend to collect past due taxes in this manner.
About the author Liv Worthington has worked in the debt management field for many years. She also offers advice on IRS levy solutions for those taxpayers who need urgent tax debt help for serious IRS matters like an IRS bank levy and the freezing of bank accounts. |
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Last Updated ( Tuesday, 02 September 2008 )
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Written by Administrator
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Friday, 15 August 2008 |
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Being under debt is normal. It can happen to anyone and it even happens to the most responsible people. Lets just say that it's a fact of life that's all around the globe. Another fact is that if you are under debt, it's not always your fault. Some people believe that having a bad credit score is the end of the world, while in fact, they are completely wrong. Bad credit is not an issue since you have the ability to acquire bad credit loans. There could be many reasons why a person has bad credit ratings. It could have been caused by either defaulting on a loan or by missing the due date of monthly credit card payment. Getting bad credit loans is not only going to aid you financially but it will also help fix your credit rating. You can use these loans for any purpose. You could re-decorate your living, use the money for medical purpose, spend it on your education, consolidate your existing debt or to take care of your wedding expenses. Some people take out these loans only to deal with their credit score even if they don't need any money. Bad credit loans give you a chance to build up your credit ratings by allowing you to repay a certain loan amount each month on time. This has a very positive impact on your credit score. There are two major types of bad credit loans. Secured and unsecured loans. Secured loan is an option for those people who want to pay low interest rates but there is a small risk. With secured loans, you will have to offer your property as collateral against the borrowed loan amount. Should you fail to repay your borrowed money, your lender will have the rights to sell your property in order to recover their money. Unsecured loans have no string attached except of high interest rates. There is no collateral involved which makes your case a risk for every lender. Therefore, the interest rates are higher than secured loans and getting approved for unsecured bad credit loans could take more time and efforts than compared to secured loans. Also, the amount that can be borrowed is not as high as you can get if you apply for a secured loan. Bad credit loan provide you the ability to take control of your financial needs without poor credit ratings getting in your way. If you are looking to apply for a bad credit loan, we would advice you to apply online as it will save you time, efforts and the process is very quick. There are thousands of bad credit lenders offering their services online and the competition only benefits the borrower. If someone is looking for loans with bad credit or even very bad credit loans, the opportunity of having a financial credibility in the market while paying previous debt and building credit history is nothing less than a blessing. |
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