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"Informal Bankruptcy" is the term proposed by authors Dawsey & Ausubel in their 2004 article by that title.
It is defined as simply hanging up on creditors' calls and ignoring their letters.
For those lacking visible assets and/or verifiable employment in "debtor friendly" states it can be a viable option. In other states such as Georgia and Tennessee, strong creditors' remedies dictate either a formal bankruptcy strategy or a departure from the state.
The authors' study was somewhat limited however, and did not take into account the possibility that debtors pursuing an informal bankruptcy strategy might at some later time use the federal bankruptcy laws, make partial or full repayment voluntarily, or lose some assets or income to attachment or garnishment.
Probably the most advantageous strategy for someone in financial straits who does not want to avail themselves of a formal bankruptcy would be to self-educate themselves on the local and Federal Laws regarding collections and debt, maintain good records and vigilance over their credit reports and the local courthouse plaintiff/defendant indexes.
Over time, the debtor could fight the cases they could win and potentially settle the cases that were brought by more stubborn creditors. The tables could also be turned on many creditors by suing them for the almost-inevitable FDCPA and FCRA violations, and some debtors report that such suits provide them a second income.
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What are the alternatives to filing for bankruptcy?
One option to avoid filing bankruptcy is to simply do nothing. If one has no income and no assets, they are considered "judgement proof" and typically creditors will not file legal action against them as there is nothing for the creditors to recover. Other alternatives include informal or formal negotiations with one's creditors, consolidating debt, or restructuring debt (essentially refinancing the original loan).
What are the alternatives to filing bankruptcy?
One option to avoid filing bankruptcy is to simply do nothing. If one has no income and no assets, they are considered "judgement proof" and typically creditors will not file legal action against them as there is nothing for the creditors to recover. Other alternatives include informal or formal negotiations with one's creditors, consolidating debt, or restructuring debt (essentially refinancing the original loan).
You owe your sister money can you file bankruptcy on that loan?
If you file bankruptcy, you file bankruptcy on everything. You can not file bankruptcy on one loan.
How long bankruptcy after discharged records stays?
1st bankruptcy = 7 years 2nd bankruptcy = 20 years 3rd bankruptcy = life
Which companies offer information on bankruptcy?
Some companies that offer information on bankruptcy include Dow Jones and Jacob Meyers Bankruptcy. You can also find information on bankruptcy on the bankruptcy Wikipedia page.
What is the plural of bankruptcy?
The plural of bankruptcy is bankruptcies.
Is 7-eleven in bankruptcy?
no , ther not in bankruptcy
Different between formal and informal letter?
informal letter informal letter
Is blare informal or formal?
informal
What is informal talk?
informal talk what is it
If you are an additional card holder on a parent's credit card account and you file bankruptcy will the bankruptcy appear on their credit?
The bankruptcy will appear on their credit if you include this card in your bankruptcy. If you leave the card off the bankruptcy, it will not effect their credit.
How do you check your bankruptcy date?
The first two digits of the docket number, before the hyphen, tells you the year. If you don't have the docket number, you can go to a bankruptcy court or bankruptcy lawyer's office and look it up on the computer.
