Filing bankruptcy is a big decision, and there are some financial ramifications after it’s complete. With this in mind, filing bankruptcy may only be the first step most debtors have to take to get their finances back on track. In fact, failing to take the right steps after bankruptcy may result in another financial crisis a few years later. Continue reading
Everyone needs income to pay for their basic necessities- housing, clothing, and food. Eliminate income or have your income reduced for an extended period of time and it’s likely you will feel an automatic financial pinch or potentially face a financial crisis. Recently on our bankruptcy forum a user asked, “I live in California and I cannot pay my credit card bills and child support debt. I am afraid my creditors will garnish my wages and I will not have enough money to pay my bills. Are my creditors able to get a California wage garnishment?”
Despite what some are calling a financial recovery, many individuals have not financially recovered from the 2008 economic downturn and may still be considering filing for bankruptcy protection. Recently on our bankruptcy forum a user asked, “If I am filing bankruptcy without a lawyer how do I file my Chapter 7 bankruptcy forms?”
Although government officials claim the economy has recovered, many individuals continue to struggle to pay for their basic needs of food, clothing, and shelter. Others have had to rely on aggressive borrowing strategies, such as payday loans or high interest credit cards. Recently on our forum a user asked, “I have a job, but I am living paycheck to pay check. I am depressed and my debt obligations are growing. What can I do to improve my financial situation?” Continue reading
Each year thousands of debtors complain to the Federal Trade Commission (FTC) about violations under the Fair Debt Collection Practices Act (FDCPA). The good news is debtors are wising up to the legal rights they have under the law and are willing to fight against abusive, unfair, or deceptive practices debt collectors have used for years.
Recently on our bankruptcy forum a debtor asked, “I have heard something about a law that protects me against harassing debt collector actions. What is this bill and what can I do to stop debt collectors?”
Individuals may give little thought to credit bureaus and what they do until they decide to request a loan to make a purchase and are denied credit or charged a high interest rate because they have a low credit score.
For years, Chapter 7 bankruptcy has been the most popular bankruptcy to file. It is considered a liquidation bankruptcy, allowing debtors to sell certain assets and use the proceeds from the sale to repay their creditors. Dischargeable, unsecured debts which remain after the liquidation of the assets are generally discharged.
Given the current state of the economy, high unemployment, high student loan debt, and increased medical costs, you may be suffering a financial crisis. You may have even considered filing bankruptcy.
For some people, filing bankruptcy may be the best option. For others, however, filing bankruptcy may not. Before filing bankruptcy it’s important to step back and ask yourself several important questions.
Payday loans- experts have been warning consumers about them for years. Not only do they charge exorbitant interest rates, but consumers frequently are sucked into a black hole of debt with endless payments. But now, there’s new player in town. Not only do you have to avoid the brick and mortar payday loan down the street, but the Better Business Bureau has also issued a consumer alert to any customer who is considering using an online payday lender.
Recently on our forum a user asked, “If my spouse has died and I live in a community property state will I be responsible for repaying his medical bills?”
Having a spouse die can be one of the most devastating events in a person’s life. Unfortunately, even after death, life does not stop, and creditors may continue to collect debts, including medical bills. But whether or not you will have to repay your spouse’s debts after the assets of their estate have been distributed may depend on whether you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin) and whether the debts were acquired during the marriage.