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i have a client who has large debts - to the extent that a voluntary agreement with creditors seems unlikely to make sense - i've googled the problem but am only coming up with 'free advice' from companies who want to sell their services - voluntary agreements, negotiations etc.

what i need to know is whether you can declare yourself bankrupt and what's the cheapst way of doing it? i'm a counsellor and don't have the financial expertise to answer this and it sounds lame, in my ears, to say - go see the CAB…any knowledgeable help out there?

thanks in advance

I think you need to refer your client to these sites:

http://www.adversemonkey.co.uk/credit-problems/bankruptcy.htm

http://www.thisismoney.co.uk/help-and-advice/advice-banks/article.html?in_advicepage_id=100&in_article_id=395884&in_page_id=90

Apparently your client simply needs to go to his/her local court to do this, with no solicitors involved. It seems that the only cost is court fees on the 3rd anniversary of declaration of bankruptcy, and even those court fees may be waived if you are on income support. Sounds pretty low-cost to me.

Hope your client is OK - can't be easy to have heavy financial burdens.

I don’t understand how something that was potentially income for the creditor can suddeny count against the debtor, especially when a percentage of it was interest, anyway.

The IRS does not require creditors who discharge debts or any portion of the debt to file a Form 1099, no matter how much the debt is worth. Second, although implied, creditors rarely file Form 1099 even when the debt remains unpaid.

Did you receive an official looking letter that reminds you of a debt you have not paid. The letter refers to the creditor's "right to forgive this debt and submit a Form 1099 to the Internal Revenue Service on all bad debt accounts." The last sentence usually reassures you that the creditor does not intend to take such an action at this time, and then urges you to remit payment to "avoid any additional collection activity.
This type of representation violates Section 807(10). This, in turn, may create the additional false impression that the IRS has been informed about the debt at issue, also in violation of Section 807(10).

EDIT: Here are some of the rules as issued by the IRS
If a federal government agency, certain agencies connected with the Federal Government, financial institution, credit union, or an organization having a significant trade or business of lending money (such as a finance or credit card company) cancels or forgives a debt you owe of $600 or more, this form must be provided to you.
NOTE< this does not include 3rd party collection agencies!!

Do not report a canceled debt as income if you did not deduct it but would have been able to do so on your tax return if you had paid it. Also, do not include canceled debts in your income to the extent you were insolvent.

Hope this answer is of help to you
LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice

http://www.debtopedia.com/negotiate.html - Learn how you can negotiate with your credit card company to save money on your payments - and pay off your credit cards faster.

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I only know the barest of facts, but it smells fishy to me. My family's business is part of a shopping center strip and we are the anchor store. About a year ago, it switched property management groups. This week, we were told that our rent would rise substancially to cover an outstanding debt that the previous property owner passed on to the current company. Shouldn't that debt have been part of negotiations when this company bought out the last, and how can they make us pay for their mistake?

It doesn't sound right that they're increasing the rent on you for their debt problem.

However, you're only protected by any regulations on rent increases. Depends on where you are, you want to find out the maximum increase they can impose.

Also, since you own the anchor store, you have some clout to negotiate a better term for yourself or move the store.