Bankruptcy

When you’re in need of a medium-ticket item like an appliance or a new couch and can’t afford to buy it outright, rent-to-own might look like the perfect solution. On the surface, it looks a lot like buying the item on credit, but it’s much more accessible to people who might not qualify for conventional financing. That’s why rent-to-own services often appeal to people with lower incomes and not-so-great credit histories.

Many people wait too long to file bankruptcy. We have reported before that the average person who files for consumer bankruptcy has been struggling with debt for two to five years before making the decision. That’s a long time to live with financial stress, and often means a lot of hard-earned money down the drain in the form of interest and late fees. Delaying a bankruptcy filing can also have consequences such as foreclosure, wage garnishment and automobile repossession. 

For some people, it can be a relatively swift and easy process, but for the majority of folks, it will take time to gather the necessary documents and information.  Once you have provided all the information to your attorney, it will still take some time to get the bankruptcy forms prepared and to review everything for accuracy.

When someone files Chapter 7 bankruptcy and owes money on a secured debt (such as a vehicle loan, mortgage, furniture loan, or other debt secured by property), they must state their intention about whether they plan to keep or surrender the collateral securing the debt. Chapter 7 individual debtors typically do this on Official Form 108, the Statement of Intention, which must be filed within 30 days after filing the bankruptcy petition or by the date set for the meeting of creditors, whichever is earlier. 

Following a Budget is absolutely critical to keeping your finances in check.  But, if you keep going over each month, you need to ask yourself why?  Here are several places that people spend throughout the year, but often do not realize it until too late.  Make sure these items are in your budget on a monthly basis so you are not caught overlooking them and allocating your money improperly.

The cost of health care remains a major concern for nearly all Americans, and there is still no shortage of health care related news coverage. Since this post was originally published in 2017, the health care debate has changed. The Affordable Care Act a/k/a “Obamacare” remains in place, the Health Insurance Marketplace remains active, and many current questions focus on coverage, premiums, deductibles, out-of-pocket costs, and the future of premium tax credits. Regardless of what happens in Washington, D.C., medical bills and other health care costs continue to be a major expense for many Americans. At times, these costs can be overwhelming.

I get asked all the time by clients and potential clients whether a collection email or call is legitimate.  This is an example of a document emailed to a client who wanted to know if this was legitimate or not.

One of the things that I have seen cause confusion for my clients is the fact that the debt owed to the creditor and a lien created to secure the payment of the debt are not the same thing. Clients find it hard to absorb the concept that a debt can be discharged in bankruptcy but a lien can survive the discharge and continue to cause later problems.