Debt can be a dangerous thing to have. It can quietly grow into a massive problem over months or years or happen overnight because of a medical emergency. No matter the cause of your debt, it is important to know what you can do to combat it. The average debt for an American is more than $90,000, which means it is more important than ever to act to reduce or eliminate your debt. Here are a few tips you can employ to free yourself from financial hardships: Tighten your budget It can be easy to overlook minor expenses in your budget. However, a few dollars a month for several services begin ..read more

Individuals who face financial peril are no strangers to the collection efforts employed by various agencies. Creditors take significant steps to ensure repayment and often blur the lines between harassment and the regulations they must follow. A new tactic, however, is to rely on a debtor’s daily use of social media sites to bolster communications. For years, debt collectors have relied on phone, postal or email communications to reach debtors. Recently, however, they have taken to various social networking sites as a way to remind individuals of their financial obligations. Fortunately for d ..read more

If you are facing foreclosure on your home in 2021, you aren’t alone. The economic downturn of 2020 has led many homeowners to get behind on their mortgage payments. You now may be considering your options, hoping for a way to avoid foreclosure. Seeking bankruptcy is one option you should consider. Avoiding home foreclosure through bankruptcy A Chapter 7 bankruptcy likely only will delay your home foreclosure. However, you can save your home from foreclosure with a Chapter 13 bankruptcy. Chapter 13 bankruptcy is the best option for those who have fallen behind on their mortgage payments becaus ..read more

When you decide to seek a bankruptcy, you know it will impact your credit. You may worry about when you can qualify for a loan again and when your credit score will begin to rebound. Yet, exactly how long will a bankruptcy affect your credit? Bankruptcy affecting credit First, if you seek a Chapter 7 bankruptcy, the bankruptcy will remain on your credit report for 10 years. If you choose a Chapter 13 bankruptcy, the bankruptcy remains on your credit report for seven years. However, with Chapter 7, you can discharge thousands and thousands of dollars of debt quickly. So, your credit score may a ..read more

If you have mounting debts, you’ve probably become all to familiar with receiving calls from debt collectors. You may feel like your phone rings at all hours of the day. You’re tired of it. You wonder if debt collectors can just call you whenever they want to. Aren’t there some rules about this? Understanding the Fair Debt Collection Practices Act The Fair Debt Collection Practices Act does limit when debt collectors can call you. They can’t call you before 8 a.m. or after 9 p.m. unless you agree to that. Debt collectors also can’t contact you at work if you tell them you can’t receive calls t ..read more

Tagnetics, Inc. v. Kayser, No. 20-3556 (January 14, 2021). Kayser and two other former employees of Tagnetics filed an involuntary chapter 7 bankruptcy against Tagnetics seeking to be paid their wages.  The parties came to an agreement through email correspondence in which they agreed that Tagnetics would pay the three employees a certain sum and the employees would agree to “full mutual releases (no carve outs).”  But when it came time to reduce that agreement to a formal writing, Tagnetics wanted to include Compass Marketing, an affiliated company of Tagnetics, as a party to be rel ..read more

If you feel your drowning in debt, you may see bankruptcy as your best option. If you seek Chapter 7 bankruptcy, you can get nearly all of your debts discharged. With a Chapter 13 bankruptcy, you can reorganize your debt and reduce debts. However, bankruptcy won’t discharge some debts, and some are difficult to discharge in bankruptcy. U.S. bankruptcy code doesn’t allow for discharging these type of debts: Spousal support or alimony Some unpaid taxes, such as tax liens (you may be able to discharge some local, state or federal taxes if they date back from several years ago) Debts for willful a ..read more

More U.S. businesses filed bankruptcy in 2020 amid the coronavirus pandemic than in any other year since 2009. Energy, retail and consumer services companies filed the largest number of bankruptcies last year: 244. Bankruptcy experts expect the high number of business bankruptcies to continue into early 2021, as more businesses run out of money during the ongoing pandemic. Industries vulnerable for 2021 filings Experts believe the following industries are most vulnerable for bankruptcies in 2021: Energy Consumer service Retail Travel Twenty-seven retailers filed bankruptcy in 2020, including J ..read more

Many Americans are afraid of getting sick, especially during the current global crisis. However, a recent study reiterated another fear of most Americans have with the medical care system, its unruly debt. According to Healthcareinsider.com, more than half of the respondents expressed concerns that a health problem or situation would lead the household to significant debt or bankruptcy. The study also saw a pattern where patients would avoid doctor visits or health concerns due to the cost. And unfortunately, this isn’t a new problem. Most medical emergencies could easily wipe out a family’s s ..read more

Deciding to seek bankruptcy protection isn’t easy. You may have tried to overcome your debt for years, but a recent hospitalization grew your debt even more. Now, you are ready to file bankruptcy but have another tough choice to make: Should you seek Chapter 7 bankruptcy or Chapter 13 bankruptcy? Chapter 13 bankruptcy basics When people think of what filing bankruptcy means, they often think of what Chapter 7 entails: discharging nearly all your debts through bankruptcy. However, some people decide to seek Chapter 13 bankruptcy, where debtors reorganize their debt. Some of the reasons people c ..read more