While Chapter 7 bankruptcy will allow filers to erase qualifying debt, nondischargeable debts can’t be eliminated by filing for bankruptcy. Qualifying debts include past-due credit card balances, unpaid medical bills, and personal loans, amongst others. The U.S. bankruptcy code won’t forgive debts like student loans, income tax debt, or legal fines. Those are considered nondischargeable […]
With the economy arguably in a slump and unemployment at an all-time high, Americans are having to make adjustments to their financial plan to see them through these uncertain times. CNBC reports that over 40% of Americans are unable to afford an unexpected event or emergency that exceeds $1,000. Those statistics should make everyone take […]
If you’ve been considering bankruptcy, but the coronavirus pandemic has delayed your decision, here are some steps you can take now. The #QuarantineLife is first starting to end as U.S. businesses begin to open up. States are lifting COVID-19 restrictions at different paces. Even if you haven’t gotten out of quarantine yet, your state is […]
Even before the coronavirus pandemic, economists were warning of a possible recession in 2020. Trade issues with China, economic declines in other regions, flat global industrial production, and increasing personal debt are just some factors that have been stressing the U.S. economy. The longest economic expansion in history appears to have ended, with 10 million […]
If the coronavirus pandemic and the current state of the economy have switched your focus from debt consolidation to bankruptcy, you are not alone. John Rao of the National Consumer Law Center said people don’t typically file right away during a crisis; he said: “There is no question that given the effect of this pandemic, […]
Health and safety are top concerns during the coronavirus pandemic, but aside from COVID-19, economic and financial issues are also taking center stage. Financial hardship is impacting millions of Americans. Protecting your credit is important for your financial future. Missing payments will lower your credit score, which can affect your eligibility for a new credit […]
If you’ve fallen on hard financial times, bankruptcy can help set you on the right course. You can receive a discharge of debts with Chapter 7 bankruptcy or discharge some debt and create a repayment plan with Chapter 13 bankruptcy. However, there are many considerations and steps to navigate. These bankruptcy basics are intended to […]
The coronavirus pandemic has changed many things, including how financial institutions view loan modification. With the passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), institutions won’t be directed to classify loan modifications as trouble debt restructurings (TDRs). Financial institutions have been encouraged to work with borrowers impacted by COVID-19, as confirmed […]
As novel coronavirus has spread across the globe, COVID-19 has affected every aspect of life. The U.S. Department of Labor reported nearly 3.3 million people filed for unemployment in the week ending March 21, the highest ever recorded.1 In California, 1 million people filed for unemployment in two weeks.2 The virus is not only overwhelming […]
The Senate passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) on March 25, 2020. Enacted on March 27, the legislation placed short-term restrictions on lenders and servicers of federally backed loans. It enforces mandatory forbearance obligations, moratoriums on foreclosures, and revises credit reporting obligations to help individuals and businesses facing financial hardship […]
