Despite a booming economy and low unemployment rate, many Americans struggle to pay their bills on time. In fact, a record 7 million are 90 days or more behind on car payments, suggesting that not all Americans are bouncing back in the strong labor market. Out of all the bills people pay, most tend to prioritize their car payment because it is critical to have a vehicle to get back and forth to work. However, when people do get behind on a car payment anywhere from one day to a few months, … [Read more...]
When Medicare is Not Enough | The Graying of Bankruptcy
Many believe that Medicare will cover the healthcare needs they have as they age, but there are substantial expenses above and beyond what Medicare pays that can have significant financial consequences for seniors. Many older Americans quickly realize they are on the hook to make up the difference for medical costs Medicare does not cover or pay for additional insurance to bridge the gap and then some. Older Americans Seeking Bankruptcy on the Rise Americans 65 and older spend an average of … [Read more...]
Bankruptcy Discharge of Parking Tickets and Traffic Fines
Illinois Drivers can accumulate a number of parking tickets or traffic fines that can add up to big debt if they go unpaid. Many wonder if this type of debt can be tackled along with other debt through bankruptcy. Discharging Traffic or Parking Tickets in a Chapter 7 Bankruptcy Unfortunately, fines owed to a government unit/city such as traffic fines or penalties and parking tickets are typically not dischargeable in a Chapter 7 bankruptcy, although it may buy you some time. If you have … [Read more...]
Bankruptcy Protection for Retired Americans
Today, the average household headed by those 60 years of age and older carries more than $55,000 in debt. Fifty percent of Americans 75 and older not only have some form of debt to tackle, but 25 percent are still chipping away at mortgage debt putting them in a potentially precarious position. Perhaps the most surprising statistic is that older Americans between the ages of 60 to 69 acquired more student debt in the last decade than younger people ages 18 - 29 adding to their overall debt … [Read more...]
Drawbacks of Taking Out a Home Equity Line of Credit
With many Americans shouldering more debt and wages stagnating, home equity is being used as a lifeline to make ends meet. In fact, a recent survey reveals that 1 in 3 homeowners earning less than $30,000 a year and 22 percent of millennials agreed that tapping into home equity is okay to cover their everyday bills. Because many Americans have little savings, home equity often is also used to cover gaps when costly home maintenance is needed or when funds run short for other unexpected … [Read more...]
Protecting Cosigners and Guarantors in a Chapter 7 Bankruptcy
Sometimes, borrowers seeking a loan may need a cosigner or guarantor to be approved by a lending institution. Reasons may include not having an established credit history, having no collateral to secure the debt, new businesses seeking funding, or perhaps a hiccup in a credit report such as a record of delinquent payments. Creditors may be willing to loan you money under any of these circumstances, but may require a cosigner or guarantor - typically someone with a higher income, assets and good … [Read more...]
When Health Insurance is Not Enough
Americans purchase health insurance to avoid financial ruin in the face of a catastrophic illness. However a recent survey of people who have had medical emergencies show that health insurance seldom offers the financial protection many had hoped for. Unfortunately, most people do not know what they are in for when they turn to insurers in a medical crisis. More than a third of people that fall seriously ill wind up spending most of their savings while they are sick and get behind on just … [Read more...]
Actions to Avoid If You’re Considering Bankruptcy
Do not liquidate your retirement accounts to pay off debt that can be discharged in bankruptcy. Retirement accounts enjoy broad protections in a bankruptcy so it is not a good idea to cash them out. Do not take out an HELOC to pay off credit card debt that can be discharged in bankruptcy. Remember that credit card debt is unsecured debt meaning it is secured only by your signature, not collateral, a home or a car. If you pay off credit card with a HELOC, you not only risk losing your home if … [Read more...]
Deciding When to File Bankruptcy
If you are considering Chapter 7 bankruptcy protection, you may wonder if the timing of your bankruptcy matters. For most, the answer is yes. After all the goal, is to emerge from bankruptcy in better financial shape so discharging as much debt as you can is in your best interests. For example, if your financial situation has worsened because of medical costs related to an illness, you may want to wait until you have incurred the bulk of medical charges before filing bankruptcy so that they will … [Read more...]
Wages Not Keeping Up
Despite the fact that the economy is strong with unemployment down and millions of jobs going unfulfilled, many who are working just don’t earn enough to make ends meet. For many, wages have remained flat for decades making it difficult to keep up as the cost of living has increased across the country. Many Americans continue to turn to credit cards to bridge the gap, putting out one fire at a time as unexpected expenses pop up on top of everything else. With credit card debt cresting at $1 … [Read more...]