Bankruptcy is designed to provide debt relief to financially distressed consumers, many of whom are struggling under the weight of outrageous medical bills, sky-high credit card balances and other debts. If there’s any possibility that you may need to file bankruptcy soon, however, you need to approach your holiday shopping with care. The wrong moves now could cause significant problems for your bankruptcy petition later. What’s holiday spending got to do with your bankruptcy? The bankruptcy process is designed to be fair to both debtors and their creditors. As such, the bankruptcy court reser ..read more

Bankruptcy is often an individual's last line of defense before outright financial catastrophe. People often file for bankruptcy to stop creditor lawsuits or preserve their assets from repossession or foreclosure. Bankruptcy leads to a pause in collection activity and can result in the discharge of someone's eligible debts if they successfully complete the process. Many bankruptcy filers need financial relief because of medical debts or issues with credit cards. However, there are many other potential sources of overwhelming personal debt. For example, some people struggle with tax debt. Perha ..read more

Those who are facing foreclosure are often looking for solutions to keep their home. They know that they’ve missed payments, but they want to get their finances in order. Keeping the home seems like the most important thing they can do. For some, one tactic to consider is declaring bankruptcy. There are two ways in which this can help with the foreclosure. An automatic stay First and foremost, filing for bankruptcy creates an automatic stay, which instructs other courts to pause the court cases that they are processing. Essentially, the bankruptcy filing has to be addressed first. Only after i ..read more

As of 2023, the average U.S. adult carries $21,800 of personal debt (not including any mortgages) and may spend about 30% of their monthly income trying to pay it off (or at least keep up with the payments). Tellingly, 39% of consumers with debt issues feel like it will take them years – if not their entire lives – to pay what they owe. All that debt isn’t just taking a big bite out of people’s wallets, either; it may also be slowly destroying their health. The stress associated with a lot of debt can be disastrous Money troubles can seep into almost every aspect of a person’s life. It can lim ..read more

When looking at total levels of credit card debt in the United States for the second quarter of 2023, analysts found that there had been a $45 billion increase between that point and the first quarter of the same year. Moreover, they discovered that this massive jump had pushed the total amount of credit card debt that Americans hold to a historic level, topping $1 trillion for the first time. On top of that, the number of people failing to pay off their credit card bills has been rising. In July, it went above 5%. Financial analysts believe that it’s just going to continue following that tren ..read more

Credit card companies are often eager to convince their clients to carry as high of a balance as possible. They make money off of that balance. Those who pay their balance in full every month may not be particularly profitable for a credit card company. One way credit card companies attract new customers or get existing customers to increase their balance is to extend a promotional balance transfer offer. Credit card companies may offer low rates to those who transfer a pre-existing credit card balance from another card. While those terms may be attractive, they often set people up for a more ..read more

When deciding to file for bankruptcy, one of the biggest concerns people have is losing their home. The truth is, many factors will determine if you can keep your house while making a financial fresh start. One of those factors is the type of bankruptcy you choose. Chapter 7 and Chapter 13 Many Americans are living paycheck to paycheck. And with rising costs of everyday items, it’s challenging to stay caught up on bills, let alone try to put money aside and get ahead. If you’re familiar with this type of situation, you know how devastating it can be to be hit with a significant expense, such a ..read more

As you likely realize, when either party (or both) in a marriage struggles with overwhelming debt, it affects the whole family. Money is usually scarce, and everyone ends up sacrificing some things. Many couples considering bankruptcy wonder if they must file individually, regardless of who is responsible for most of the debt. Although each spouse has the right to file separately, sometimes it makes more sense to file jointly. Benefits of a joint bankruptcy Of course, filing a single bankruptcy instead of two separate ones offers a way to save money on associated fees, but that is not the only ..read more

In today’s fast-paced financial landscape, finding viable solutions to manage debt and regain control of your financial future is paramount. Among the options available, Chapter 13 bankruptcy stands out as a powerful tool for wage earners. Chapter 13 bankruptcy, commonly known as the wage earner’s plan, offers a structured approach for individuals with a steady income to reorganize their debts and develop a feasible repayment plan. Chapter 13 allows wage earners to retain their assets while gradually crafting a plan to repay creditors over three to five years. Here’s why Chapter 13 bankruptcy ..read more

Financial struggles are a part of life for most people, and bankruptcy is a legal solution that provides relief to many who find themselves with overwhelming debt. While bankruptcy can offer you a fresh financial start, it’s not uncommon for people to worry about the potential impact filing for relief can have on their professional lives. Here are a few pieces of information that might help ease your concerns. Most employers never know about it It’s true that bankruptcy filings are a matter of public record, so anybody who really wants to know (and knows how to look) can find out about your si ..read more