Creditors May Have to Change Rules as Bankruptcy Numbers Rise The struggling economy, housing crisis and high national unemployment rate are causing Americans in increasing numbers to seek help from their mounting debt in bankruptcy courts across the nation. With more than 6,000 new filings for bankruptcy protection each day, the numbers are on track to reach more than 1.4 million total filings for 2009 up from 1.1 total filings...more
Wage Garnishment and Bankruptcy Creditors can use various methods to collect on a debt. One of the most effective collection methods is wage garnishment. By garnishing a debtor's wages, the creditor does not have to be concerned with the debtor's willingness to send payments or pay the debt in full. The money is simply taken directly out of the debtor's paychecks. Typically, a lender will not resort to wage garnishment until other...more
Unintended Consequences: Did Bankruptcy Changes Crash the Economy? A half-dozen years ago, bankers were testifying to Congress about the need for a sweeping reform of bankruptcy law to make it more difficult for Americans to file for personal bankruptcy. They got what they wanted in 2005 with the Bankruptcy Abuse Prevention and Consumer Protection Act.A team of economists now argues that the restrictive bankruptcy reforms helped lead the nation into its current deep recession by pushing the numbers of mortgage defaults and delinquencies up by almost 200,000 annually.Among the problems with the tightened bankruptcy laws is the increased costs in filing for bankruptcy and a reduction in the debts that are discharged. The unintended consequence: homeowners are often unable to get bankruptcy protection and are instead losing their houses.Types of BankruptcyIn a Chapter 7 liquidation bankruptcy, most unsecured debts are discharged. The person filing liquidates assets (less their available exemptions) to repay their unsecured debt.In a Chapter 13 reorganization bankruptcy, debtors agree to repay some of their debt over a three- to five-year period.Economists Wenli Li of...more
Bankruptcy Facts For Your Debt Relief This is a hard time for many people with the economy the way it is. More and more people are getting into debt due to unemployment, the recession, credit card debt, etc. And their credit card score suffers as a consequence, making it hard to get a loan for a house, car, etc. Sometimes debt is...more
Student Loan Consolidation Saved Me From Bankruptcy My most recent employment outlook offered a very small wage, not near enough produce my combined loan payments due by the end of each month! If it wasn't for the opportunity to consolidate my student loans, my only alternative could have been to default on the loans, destroying my...more
An Unsecured Second Chance Credit Card For Anyone With Bad Credit Or After Bankruptcy As much as a person may have really bad credit, he or she may still qualify an unsecured second chance credit card. As the name implies, this is a second chance type of credit card meant for people who do not meet the average credit standards normally required to be approved for a credit card. These are unsecured cards as well, which means that they do not require any type of security deposits. In this article, we will take a look at how these credit cards are helping folks with poor credit or who have gone through a recent bankruptcy. We will look into both the pros and cons, so that at the end, readers can get a good sense of whether this could be right for them to pursue.Rebuilding Credit HistoryThe benefits of a unsecured second chance credit card extends beyond the convenience of being able to make purchase transactions anywhere without carrying stacks of bills. It help in building up on a person's financial life. If you use the second chance card in a responsible manner (eg. no late payments, missed payments, charging only a small percentage of the balance limit etc), this...more
Guidelines on how to Fix Credit Score After Bankruptcy Have you been having tremendous amount of debt and questioning if personal bankruptcy is the appropriate final choice for yourself? If it is, how will you fix credit score shortly...more
How Does Chapter 13 Bankruptcy Work? Chapter 13 bankruptcy works very differently from a Chapter 7 bankruptcy case. When you file for Chapter 13 bankruptcy you are repaying your creditors anywhere from 0% to 100% of your debt back. In...more
Facing Debt with Bankruptcy and Credit and Debt Counseling Those in deep debt often dream about how someday, they'll get out of it. But, dreaming just isn't enough. Reality sets in and it needs to be faced with practicality. Sometimes,...more
Choosing A Qualified Bankruptcy Lawyer In Chicago When an individual or a company is suffering from financial related issues they should look at the best available option while filing bankruptcy. Bankruptcy laws provide individuals and...more
What to Expect Once You Decide to File a Las Vegas Bankruptcy Once you decide to file Bankruptcy, your attorney should provide you with some items that you will need your to complete. The main item is usually a questionnaire which...more
How Long Does it Take to Recover From Personal Bankruptcy You're doing all the right things to improve your credit and recover from your bankruptcy (i.e., managing your money and credit well, increasing your credit scores, paying your...more