Is a debt collector trying to trick you?
Debt collectors must follow the Fair Debt Collection Practices Act (FDCPA) in order to ensure that they collect their money ethically. However, not every debt collector will abide by these standards. It is important to recognize debt collector misdemeanors and misbehavior when it happens. Breaking down a collector’s threats The Consumer Financial Protection Bureau discusses […]
For Americans, credit card debt is skyrocketing
Paying for the items you use every day has undoubtedly become a struggle in the past couple of years. After all, even though many Americans have received pay increases, inflation has wiped out any meaningful economic gains. Indeed, according to reporting from CNBC, when adjusted for inflation, the average worker’s income has dropped by approximately […]
Advantages of Chapter 7 and Chapter 13 bankruptcies
Coming to the decision to file a bankruptcy can be stressful even when necessary. However, there are filing options available for people under differing circumstances. The most common are Chapter 7 and Chapter 13 bankruptcies and each has advantages. Advantages of a Chapter 7 bankruptcy A Chapter 7 bankruptcy allows you to eliminate certain debts […]
Reviewing credit card debt relief options
Many people struggle with credit card debt, but options exist for them to regain control of their finances. According to CNBC.com, the average balance for credit card holders across the U.S. exceeds $6,100. Considering all the options available to them may help people determine which debt relief path suits their situations, needs and goals. Borrowing […]
What are examples of non-dischargable debts?
If you experienced a hardship that sent you into collections, bankruptcy may offer the opportunity to return to a solid financial foundation. While a trustee sorts through creditors and decides who gets what, a judge cannot discharge every type of remaining debt. Certain types of debts remain even after bankruptcy. The trustee can assist with […]
Is a 40-year mortgage a good idea?
Most mortgage terms are 15 or 30 years. However, some homeowners who are struggling with payments may seek home loan modifications that offer 40-year terms. Is a 40-year mortgage a good idea? What is a 40-year mortgage? A 40-year mortgage is a mortgage that borrowers make payments on for 40 years. This type of loan […]
What is an automatic stay in bankruptcy and how can it help you?
When you file for bankruptcy, you want protection from your creditors and the bill collectors that are hounding you. Fortunately, you can depend on the power of an automatic stay. What exactly is this and how can it help you? A power tool When you file for bankruptcy protection, you activate an automatic stay that […]
3 benefits of filing Chapter 13 bankruptcy
Contrary to the common perception, bankruptcy is not a punishment or a failure. Rather, it is an opportunity for you to start fresh financially. As a consumer, you typically have two choices for filing bankruptcy: Chapter 7 and Chapter 13. Each has its own eligibility requirements, but if you qualify for Chapter 13, it can […]
Can you discharge tax debt in bankruptcy?
The United States Bankruptcy Code allows debtors to discharge some types of tax debt in bankruptcy. The amount of taxes you can discharge also depends on the Chapter of bankruptcy you file. You cannot discharge trust fund taxes or taxes withheld from other parties. You can discharge income taxes if you meet specific requirements. Unsecured […]
How can I keep my financed car during bankruptcy?
When you file bankruptcy, the court can wipe out all qualifying debts. However, if you have the court erase a secured debt, such as a car loan, the lender can repossess the item. To avoid losing your car, for example, you can reaffirm the loan. According to Findlaw, this process will allow you to create […]