Iceland defies IMF, writes off 24,000-euro mortgage of each household

REYKJAVIK - The Icelandic government said Saturday it would write up to 24,000 euros off the mortgage of every household, making good on an election campaign promise despite international warnings over the plan.

The cost of the measure is estimated to reach 150 billion krona (900 million euros, $1.2 billion) over four years, the government said in a statement, without giving details on how it would be financed.

The Progressive Party -- led by Prime Minister Sigmundur David Gunnlaugsson, winner of late-April elections -- had won voters over with its campaign promise to offer household debt relief.

Gunnlaugsson has said since taking office that the scheme would not hurt public finances, and had initially suggested that foreign creditors of Icelandic banks would bear the write-off.

But there have since been no details on the financing plan for the scheme.

The debt relief promise has been met with skepticism elsewhere, with both the International Monetary Fund and the Organization for Economic Cooperation and Development warning against it.

The IMF had said that Iceland has "little fiscal space for additional household debt relief", while the OECD had called for the mortgage relief efforts to target only low-income households.

Standard & Poor's had also slashed the outlook for Iceland's long-term credit rating to negative from stable, saying the plan could damage foreign investors' confidence if it is to be funded by existing creditors of Iceland's banks.

The agency further warned that it could still lower Iceland's ratings over the plan.

Many Icelandic households are struggling to repay housing loans indexed to inflation that seemed safe prior to the 2008 financial crisis but has caused borrowing costs to skyrocket following the krona's collapse against other currencies.

"Currently, household debt is equivalent to 108 percent of GDP, which is high by international comparison," said the government in a statement.

"The action will boost household disposable income and encourage savings," it said, adding that the debt relief would begin mid-2014.

source: interaksyon.com

Bankruptcy: Debt forgiveness for honest debtors

CONTRARY to what others may think, the majority of people who file for bankruptcy are honest, hard working people who simply need to get a fresh financial start.  Because life is not perfect, there are times when we are so way in over our heads in debt that filing for debt relief becomes unavoidable. Filing for bankruptcy is NOT a crime. If it was, our Congress would not have passed laws that allow people to do it. Our bankruptcy laws, although they have changed to keep up with the changing times, have been with us for many decades and it is safe to assume that they will always be an important part of our legal system.

The “fresh start” concept of Bankruptcy is based on the idea of forgiveness. The honest debtor who either has limited or no resources to pay back creditors is given a chance to start a new life free from the burden of debts. If you’ve ever been in a situation in your life where you have fallen behind on debts and you are being harassed by creditors day and night, you know what I mean.

And although some creditors may agree to work with you while you’re going through a time of temporary financial hardship, in most cases the time that they give you is too short to be of any real help. And once you start falling behind, it gets harder and harder to catch up with each passing month because your bills begin to “snowball” in a very short period of time.  Some people erroneously believe that even if they fall 60-90 days behind on debt payments that they will retain their good credit standing with creditors. Remember that once late payments are recorded on your credit report, whether 30, 60, 90 or more days being late, that negative information stays on your credit report for 7 years from the date last reported.  Most people who file bankruptcy already have a tarnished credit rating due to delinquent payments. In the long run, filing bankruptcy can actually help rebuild your credit. And it doesn’t take that long to rebuild credit, either. You’ve probably heard of people filing bankruptcy and then being able to buy a house in as little as 3 years.

Filing for bankruptcy protection can help you protect your home, car, bank account and other assets. In a Chapter 13 debt consolidation, even non-exempt assets can be protected as long as a fair plan is feasible to pay debts over 3-5 years.  And if all or almost all of your debts are credit card debts, you can pay 0% interest, reduce your monthly payment to a very low amount (in a lot of cases, lower than 50% of what you are currently paying) and get out of debt in as short as 3 years. Filing for bankruptcy protection can also stop foreclosure on your home or other real property, perhaps eliminate a 2nd mortgage (to make your home more affordable), stop wage garnishments, bank levies and stop even the IRS if you owe back taxes. By consulting with a knowledgeable bankruptcy attorney, you may find out about options you didn’t even think you had.


So if you find yourself in a tight financial situation after being laid off from a job, being sick, going through a divorce, a failed business, a family or personal emergency costing a lot of money, or any other situation that was beyond your control, don’t lose hope and there’s no need to feel embarrassed about your situation.  Instead, take action now by finding out if bankruptcy can help you get the fresh start that you need. To schedule an appointment with our office, please call TOLL FREE 1-866-477-7772. We have offices in Glendale, Cerritos, West Covina and Valencia.

source: asianjournal.com

How to know it’s time to consider bankruptcy

ARE you being harassed by your creditors day and night due to unpaid bills? If you are, you know that this is a pretty unpleasant experience. You may feel scared, angry or embarrassed about your situation. The prospect of debt relief through bankruptcy may sound appealing to you but you are not quite sure if this is really the way to go. Perhaps you have heard good things and bad things about bankruptcy and you need to learn more about it before making a decision.

But just how can you tell when it’s time to make that move and declare bankruptcy? Of course, situations vary and whether or not bankruptcy is your best alternative will depend on the facts and circumstances of your case. But generally, the answer has to do with your ability to pay, which means that you need to consider your income, expenses, your assets and the amount of your debt. You also need to look at the types of debt you have.  For example, if you are dealing with nothing but IRS taxes and they type of taxes you have cannot be wiped out in bankruptcy, you may have other options in solving your tax problems besides filing for bankruptcy.

Generally speaking, however, here are a few questions you should be asking yourself to help you assess whether it’s time for you to consider filing for bankruptcy:  (1) Are you struggling to pay even the minimum payments on your credit cards? (2) Have you started borrowing money just to be able to cover your basic living expenses such as rent or mortgage, food, gas, etc? (3) Have you lost track of how much you owe? (4) Are bill collectors calling you because you have accounts in collection? (5) Have creditors taken legal action against you such as filing a lawsuit, obtained a judgment and threatening to garnish your wages or levy your bank account?

If you said “yes” to any or most of the above, you could be in a financial danger zone and you need to take action as soon as possible before your financial problems get worse. It may be time to face your financial reality instead of pretending that everything is “OK”. Perhaps you’ve been ignoring your pile of bills and the collection calls. But you’re only going to be able to do this for so long. Sooner or later, you need to face your creditors and do something to change your situation.

I believe that bankruptcy should be a last resort and that you need to exhaust all debt relief options before resorting to it. But I also believe that a lot of people put off the decision to file bankruptcy for too long that they needlessly suffer in debt when they could have acted sooner to rebuild their finances and their life.

Since 1997, I have helped thousands of clients get out of debt. Let me help you determine if bankruptcy is right for your situation. Call Toll-Free 1-866-477-7772 to schedule a free office consultation. We have offices in Glendale, Cerritos, West Covina and Valencia.

source: asianjournal.com

Are your debt problems forcing you into bankruptcy?

ARE you having problems paying your debts? Are creditors calling you day and night threatening you with a wage garnishment, repossession or foreclosure? Are you starting to feel hopeless and depressed about your situation and don’t know where to turn for help?

The last few years have been tough for a lot of people. You may have suffered a job loss, foreclosure, lawsuit, divorce or other unexpected calamity and now find yourself overwhelmed with debt. You realize that your debt problems are not simply going to go away unless you do something about them but just don’t know where to start.

You have rights under federal law to file bankruptcy and get immediate relief from debt. Bankruptcy is nothing more than a legal remedy that allows you to regain control of your finances so that you can get back on your feet as quickly as possible. Of course, it is not the answer to all financial problems but when appropriate for your situation, it may be the only way for you to get out of the mess you’re currently in.

Although Congress enacted tougher bankruptcy laws in 2005, most people still qualify for debt relief, whether they are wiping out debts under Chapter 7 or reorganizing under Chapter 13. Depending on your circumstances, your debts can be wiped out under Chapter 7 in only a few months or the Court may ask you to repay your creditors with lower monthly debt payments over a 3-5 year period. Either way, the goal is to help you recover financially and help you start a new life free from the burden of excessive debt.

Briefly, Chapter 7 allows you to cancel or discharge your debts but in return, you must give up whatever non-exempt assets you may have. The good news is that most people don’t have much and whatever little they have, they are often protected by the exemption laws in bankruptcy. So it is a misconception that “once you file bankruptcy, you will automatically lose everything.” The truth is that most people keep everything they have (homes, cars, bank accounts, retirement plans, etc) and they lose nothing at all. An experienced and knowledgeable attorney can evaluate your case and help you plan so that you can maximize your exemptions and claim the full benefits allowed by law.

Chapter 13, on the other hand, is a debt reorganization or debt consolidation plan. The court requires you to submit all your income information as well as a monthly budget to assess your ability to pay. Your Chapter 13 plan payments will be based on the surplus income as determined by the Court. Chapter 13 allows you to keep valuable property such as your home or car (although you were behind on your mortgage and car payments at the time of filing) and will stop foreclosure and repossession immediately on the day your case is filed. Credit card debts are included in your monthly payment under Chapter 13 and, in most cases, they can be significantly reduced or even totally eliminated.

If you have a 2nd mortgage on your property that is wholly unsecured due to the fact that your property is “upside down”, you may even qualify to reduce or eliminate it in Chapter 13 through a process called “lien stripping”. This can help a lot of people who are struggling with more than one mortgage payment as it makes their home more affordable while at the same time reducing what is owed on the property. This is something that even a loan modification will not be able to do as principal reductions are very rare when doing a loan modification.

The only way to know if bankruptcy is right for your situation is to consult with a professional who has the knowledge and experience to advise you regarding your options under bankruptcy law. For a free office consultation, please call Toll-Free 1-866-477-7772. We have offices in Glendale, Cerritos, West Covina and Valencia.

source: asianjournal.com

Perfect Debt Solutions - Find a New Hope

You have the debt solutions that take you to find a new hope. Debt relief methods may be a common solution for people who are trapped in the issue of liability. There are some methods of debt prevention that are designed to accurately advise people on how to better manage their situation and achieve debt relief.
Debt settlement has become a legitimate way of resolving unsecured debts. Debt settlement works by working credit card with your creditors to settle your total debt. This program, unlike this, try to reduce the total balance of your debts instead of simply lowering interest rates that you are presently paying.

The Internet also provides resources. Use the Internet to explore their options. You will find links to sites providing information on your rights as a debtor. You will find links that will lead to steps in the reduction of debt. Services are also available online that can offer some hope. Be careful with the services of debt relief, as creditors and collection agencies to pay any fees to pay for a debt at a lower rate established, however, you pay monthly fees and other charges may apply.

You may want to consider when you are struggling with too much debt, is that your creditors would rather find a solution with you that are not paid at all. You have to enter into debt negotiations with the idea that you and your creditors will try to work together to reach a solution that benefits everyone. Can often help to use the services of an expert on debt consolidation, but sometimes you can negotiate with creditors yourself and find positive solutions.