The link between medical debt and bankruptcy has become surprisingly controversial over the past decade. In 2005, then-Harvard-Law-Professor Elizabeth Warren published a study concluding that about half of U.S. personal bankruptcy filings were triggered in part by medical expenses. An update published four years later put that number even higher. Quibbling over those conclusions began almost immediately and hasn’t slowed. …
The High Cost of Being in Debt
When you’re overwhelmed by debt, it’s often difficult to look beyond the “minimum payment due” box on your bills. Constantly racing against disconnection dates, juggling payments, and fielding debt collection calls leaves little time or energy for long-term planning. Often, the loudest debt collector or the one with the most intimidating threat gets whatever funds you have on hand, re-starting …
The Bankruptcy Discharge: What You Need to Know
During the 12-month period that ended September 30, 2018, more than 760,000 Americans filed for bankruptcy under Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code. These Americans were facing seemingly insurmountable debts, but the bankruptcy process offered them a way out. The way bankruptcy does so is through the discharge, a court order that terminates a debtor’s liability …
Chapter 7 or Chapter 13 Bankruptcy: What’s the Difference?
When individuals file for bankruptcy, one of the first choices they must make is under which chapter of the Bankruptcy Code to file their case. In general, individuals choose to file either under Chapter 7 or Chapter 13. Each of these chapters provides its own set of rules and offers different advantages and disadvantages for debtors. If you’re considering filing …
What Happens if You Forget to List a Creditor When Filing Bankruptcy?
Every bankruptcy case begins with a flurry of paperwork. In addition to the bankruptcy petition, you’ll need to file multiple schedules and other documents listing comprehensive information about your assets, debts, creditors, and other financial information. Given the complexity of the information requested, it can be easy to make mistakes. One mistake that people sometimes make when filing for bankruptcy …
Credit Card Debt Increasing Fastest in Nevada
In August 2018, Experian, one of the nation’s three consumer credit reporting agencies, released the findings from a study of nationwide credit card trends. According to that study, credit card debt in the United States grew from $734 billion in the second quarter of 2017 to $782 billion in the second quarter of this year, an increase of about 6.6%. …
Christmas Gifts and Bankruptcy
Last updated August 22, 2018. For many Americans, overspending is a holiday tradition. According to the National Retail Federation, the average American shopper expected to spend nearly $1,000 during the 2017 holiday season. And the actual results blew past the NRF’s forecast. The holidays have a way of making people spend more than they intended to, and for some, that means …
HAMP Denial May Mean Lawsuit
Under the Home Affordable Modification Program (“HAMP”), an underwater homeowner may request that a lender modify his or her home mortgage. Typically, a request is made after the homeowner has missed payments and needs the modification to eliminate negative equity, reduce monthly payments (and interest in some cases), and bring the mortgage current. If the homeowner meets certain eligibility requirements, …
Flagstar Bank Penalized for Mortgage Servicing Violations
The Consumer Financial Protection Bureau (CFPB) announced that it has reached a consent agreement with Flagstar Bank to settle accusations that the bank delayed or prevented thousands of homeowners from obtaining mortgage relief and avoid foreclosure. The agreement calls for Flagstar to pay $27.5 million to the roughly 6,500 consumers whose loans were serviced by the bank. The bank will …
When State Law Conflicts with Federal Law, Bankruptcy Debtors May Lose
The United States is a nation of laws. Many, many laws. We have city laws, county laws, state laws, and federal laws. The enforcement of each law is constrained by a jurisdiction. Federal laws typically apply everywhere within the United States; state laws only within the state borders. So, what happens when a state allows certain conduct within its borders …
