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Under the Provincial Insolvency Act 1920
1 week ago
Hi sir my name is madhu from Bannerghatta, financial year 2023-24 i invest share market losses 20 lakhs & cyber crime financial UPI fraud from loss 958000 FRAUDULENT amount not recovered from police,my outstanding balance credit card & personal loan 20 lakhs,i face financial problems my take home salary 25000 I STAY IN RENTED HOUSE & ONE CHILD 7YEAR - 2nd standard studies,wife not work,all EMI DUE 2& 3 MONTH, i face bank recovery agents pressure,present situation eligible any Under the Provincial Insolvency Act 1920, i will file for bankruptcy, sir this situations RELATED support & gaide legal opinions for me,Recovery agent daily pressure i can not manage this situations only salary dependent & no property buy from my side, please help me sir
A.Dear Client,
Under the Provincial Insolvency Act, 1920 (now replaced by the IBC Code 2016), individuals facing debt exceeding ₹500 can file for bankruptcy. The court evaluates the application and may accept or reject it based on various factors, including the presence of assets. If lacking assets, the petition may be rejected. Alternatively, debt settlement can be pursued, either independently or through third-party companies, where a portion of the loan is repaid, and the remainder is forgiven. Negotiations typically start at around 25% to 30% of the outstanding balance. However, caution is advised due to the prevalence of scam operations. It's advisable to research companies thoroughly and consider consulting consumer protection agencies. While debt settlement offers relief, it can adversely affect credit scores and may have tax implications. Additionally, closed accounts may limit future credit options. Seeking guidance from a certified credit counselor can aid in exploring options and making informed decisions regarding debt settlement.
Under the Provincial Insolvency Act, 1920 (now replaced by the IBC Code 2016), individuals facing debt exceeding ₹500 can file for bankruptcy. The court evaluates the application and may accept or reject it based on various factors, including the presence of assets. If lacking assets, the petition may be rejected. Alternatively, debt settlement can be pursued, either independently or through third-party companies, where a portion of the loan is repaid, and the remainder is forgiven. Negotiations typically start at around 25% to 30% of the outstanding balance. However, caution is advised due to the prevalence of scam operations. It's advisable to research companies thoroughly and consider consulting consumer protection agencies. While debt settlement offers relief, it can adversely affect credit scores and may have tax implications. Additionally, closed accounts may limit future credit options. Seeking guidance from a certified credit counselor can aid in exploring options and making informed decisions regarding debt settlement.
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A.Dear Client,
Under the Provincial Insolvency Act, 1920 (which is now repealed as IBC Code 2016), you can file a petition 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 an amount of fees/service.charges. 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 contacting your state attorney general's(AG) 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 a petition 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 an amount of fees/service.charges. 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 contacting your state attorney general's(AG) 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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