Filing for Chapter 7 bankruptcy eliminates credit card debt, medical bills and unsecured loans; however, there are some debts that cannot be discharged. Those debts include child support, spousal support obligations, student loans, judgments for damages resulting from drunk driving accidents, and most unpaid taxes.
Why do some people never pay back?People, generally, don't pay back debts when they simply can not afford to pay them back. There is a big difference between that and refusing to pay something. If you don't have enough money, you can't pay even if you want to. For example, say someone needs a car to get back and forth to work and school.
When a person dies, what happens to their debt?When someone dies, their debts are generally paid out of the money or property left in the estate. If the estate can't pay it and there's no one who shared responsibility for the debt, it may go unpaid. Generally, when a person dies, their money and property will go towards repaying their debt.信用卡還款問題
What is the 30% debt rule?50% of your net income should go towards living expenses and essentials (Needs), 20% of your net income should go towards debt reduction and savings (Debt Reduction and Savings), and 30% of your net income should go towards discretionary spending (Wants).
What happens if you can't afford to pay your debt?What Can Happen if You Stop Paying Your Debt? If you stop making payments on your credit cards or other general consumer debts, your creditors will usually charge you a fee for defaulting on payments and start reporting those missing payments on your credit history.
What is an unhealthy amount of debt?Key takeaways
Debt-to-income ratio is your monthly debt obligations compared to your gross monthly income (before taxes), expressed as a percentage. A good debt-to-income ratio is less than or equal to 36%. Any debt-to-income ratio above 43% is considered to be too much debt.iva 債務重組
To pay off debt quickly, focus on increasing your payments, starting with high-interest debts first, while minimizing new debt. Utilize strategies like the debt snowball or debt avalanche, and consider consolidating debt for lower interest rates if feasible.
What is policy on restructuring of loans?Loan restructuring is a process used by banks to avoid the risk of default on existing loans. It is an option offered to borrowers to help them out of financial challenges or liquidity issues that could impact their loan repayment capacity.
What is the golden rule of borrowing?The Golden Rule states that over the economic cycle, the Government will borrow only to invest and not to fund current spending. In layman's terms this means that on average over the ups and downs of an economic cycle the government should only borrow to pay for investment that benefits future generations.債務重組借錢
When not to borrow money?Inability to pay during their time of crises
If the friend you borrowed from is ever in need of money, you could be faced with the situation of being unable to help them in return. It's quite possible for your friend or relative to have an unexpected financial crisis of their own soon after they lend you money.