Filing bankruptcy can help individuals find the debt relief they need and obtain a new financial start in their life. However, many people worry how bankruptcy will affect their credit score—and therefore, many future financial opportunities.
Chapter 13 bankruptcy is a versatile and flexible debt-relief tool that allows many individuals, or married couples, to achieve meaningful debt relief. While many confuse the Chapter 13 repayment plan with debt consolidation programs or similar schemes, the repayment plan allows people to reorganize their debt through a reasonable budget. Consumers are not necessarily required to repay all of their outstanding debt during the course of the plan. Many repay far less than their overall debt. Each case is unique. However, these plans require great attention to detail and sometimes complex legal guidelines. That is why working with a skilled lawyer is important.
Overall, consumer bankruptcy filings have remained relatively steady across America. For one demographic, however, the rate of bankruptcies has more than tripled since 1991: retirees over the age of 65. More than 12 percent of filers are now age 65 and older, up from 2.1 percent just a generation ago.
A recent court decision may mean that much-needed debt relief will finally be on the way for students defrauded by unscrupulous for-profit colleges and universities. The decision, handed down by a federal judge earlier this month, finds that the U.S. Department of Education - and its leader, Secretary Betsy DeVos - acted in an "arbitrary and capricious" manner by delaying Obama-administration rules regarding debt forgiveness and forbearance for affected students.
Medical debt - and medical debt collection - are both billion-dollar industries in America. Our healthcare system, such as it is, means that millions and millions of us have insurance coverage, yet costs of medications, treatments and physician visits still put countless of Americans in debt annually.
Financial data provider Black Knight reports that Americans are sitting on nearly $6 billion in home equity value. Though those assets are obviously impressive, more people are making poor choices when it comes to how - and if - to spend their home equity.
Millions of Americans struggle with overwhelming medical debt. It is quite common for families to start crowdfunding pages to get help with medical expenses, to take out personal loans, to max out credit cards and more just to get the bills paid. Sometimes, though, things get to be too much. If you are dealing with seemingly insurmountable medical debt, it might be time to seriously consider a bankruptcy filing.
Anyone in New Mexico who is facing serious financial problems is definitely not alone in the struggle. In fact, tens of thousands of people throughout the nation are currently going through similar situations. Credit card debt is often a causal factor when finances are thrown out of whack. Chapter 13 bankruptcy may be a solution.
Debt could be either good or bad depending on the intentions of the debtor. For example, a mortgage loan that has a payment within 36 percent of the borrower's monthly income would be a good debt. On the other hand, if the payment on a New Mexico property is more than a third of the homeowner's income, they are more likely to struggle financially.
While it's true that many American bankruptcies stem from medical expenses, job loss or sudden loss of income, a fair amount of them relate to divorce. A divorce means divvying a single household - and its income - into two. This means twice the expenses, twice the utilities, twice the mortgage or rent payments, etc.