Bankruptcy Articles and Information
If you are buried in debt and feel like it will be impossible for you to ever dig your way out, filing for bankruptcy may the answer. The purpose of the law is to provide people who have fallen deeply in debt to have a fresh financial start in life. The reasons for needing to file for bankruptcy are not important.
There are different types of bankruptcy. The main ones used by individuals are Chapter 7 and Chapter 13. Each one serves a different purpose and has its own set of filing and discharge rules. No matter which chapter you use, on the day you file your bankruptcy petition, all debt collection by all creditors must immediately stop. A bankruptcy attorney will evaluate your financial situation and the type of debt you have and help you decide which bankruptcy chapter is the one that best meets your needs.
The Great Recession of a few years back might be fading in the memories of some; however, in nine states across the United States, the job markets have not fully recovered according to a recent AP report. According to the report, the job numbers and overall size of the economy are still below 2008 levels in the nine states. Miguel Brown of Meridian, Mississippi is quoted in the report as saying “It’s tough. There’s not a whole lot of jobs in Meridian, especially that pay anything.” The report also notes that Alabama, Michigan, New Mexico, and West Virginia are still…Read More
No one likes going down Memory Lane to recall regrets but as we get older and wiser most would say that the greatest learning experiences are revisiting past failures or mistakes. In a recent article in the New York Post, “Nearly three in four Americans regret doing one thing with their money”….. NOT Saving It!!! I can honestly tell you that in the past that I have been one of those Americans. The consensus among people 30 years of age and older seems to be that not starting earlier to build savings for retirement is their biggest regret. But interestingly, among…Read More
According to legal publisher LexisNexis, approximately 45% of those living in the United States have a Will. This is actually a pretty conservative number as other studies show numbers are even lower. Younger people are even less likely to have a Will than older people. I highly recommend everyone to get a Will prepared. Some people have the misconception that having a Will means you have to go to Court to “Probate” said Will for your loved ones to receive your assets upon your death. Therefore, not having one made means they can avoid Court. Unfortunately, that is not true….Read More
We have a high school senior this year and with graduation festivities around the corner, our focus has been how will be pay for college for our daughter the next four years! Whether your student has applied for scholarship opportunities or not, you need to be aware that there are school-based financial priority deadlines for Alabama’s four-year colleges. Cash For College The Alabama Possible Executive Director Kristina Schott states that students need to be aware of financial aid deadlines for the colleges they hope to attend. There is a list of admissions and financial aid priority deadlines for Alabama colleges…Read More
I attended a meeting last week and I made the comment that I was seeing more and more consumers who have 8 years car loans. The response was, I have never heard of an 8 year car loan. I began to research how often 8 year car loans are offered and the pros and cons of an 8 year vehicle loan. The consensus seems to be that in order to finance a new vehicle for a monthly payment that lower income consumers with not so great credit can afford, the lending industry will extend the car loan to 96 months. …Read More
On April 25th, U. S. Bank National Association (“Bank”) was fined the sum of $15 million by the Office of Comptroller of the Currency (OCC) for violations of the federal bankruptcy laws. This fine must be paid into the United States Treasury. The Bank agreed to pay the fine but did not admit to any wrongdoing. The OCC determined that, between 2009 and 2014, the Bank did not properly follow federal bankruptcy laws involving: improperly filed Proofs of Claim; misapplication of payments resulting in overpayments by customers who were paying through a bankruptcy case; improperly filed notices regarding payment changes;…Read More
A 401(k) is a great tool for saving for retirement. Most of us worry about having a enough money for retirement and 401(k) allows for reducing taxable income and it also is an exempt or protected asset from most all creditors. In counseling individuals with financial problems, I am often asked whether a 401(k) loan is a good idea. It really just depends. A recent article on CNBC suggests that it is never a good idea. 401(k) Loans “Experts” argue that account balances on these accounts are far below the amount necessary for retirement and many do not advise taking…Read More
It’s actually amazing to think that after going through a bankruptcy, completing the paperwork and the process, making sure that all creditors and collectors are listed, and receiving a discharge that one might still-years later-get a collection notice from a collection agency about an old debt. Even if someone does not file a bankruptcy but rather pays the debt, we have experienced instances wherein after the debt is paid, a notification of owing the debt is received from a collector! Or, more commonly, people find themselves in situations where they can no longer pay their bills due to an illness…Read More
An article this past weekend in the New York Post discussed the massive amount of debt currently owed by Americans. We are headed to debt levels which may top $12.68 trillion dollars and which have not been seen since 2008 according to the Federal Reserve. The article states that the average American faces $37,000 in debt, not even including their mortgages, which could easily add another zero to that number. 1 in 10 people are looking at $100,000 in debt excluding their mortgage. Unable to Pay Off Debt Americans struggle each month to pay down debt with 20 percent now…Read More
A debt settlement company is a business designed to help you negotiate to pay less to your creditors than you actual currently owe. The company will calculate your payments based upon the debts you owe and its fees for providing the service to you. As you pay the company each month, a portion of what you pay, less its fees, will be placed into an escrow account. Once there is enough money in the escrow account to negotiate with a creditor, they will contact the creditor to negotiate a settlement balance. In most situations, a debt settlement company will tell…Read More