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Recent Blog Posts
Bankruptcy Concerns: Supreme Court Decides on IRA Exemptions
Millions of people across the country have been living under the auspices that securing funds in 401(k)’s, IRA’s, and other long term accounts will ensure the financial stability of both themselves and their loved ones. These accounts are structured to prevent the need for a bankruptcy attorney, especially in the case of an inheritance. However, due to a recent Supreme Court ruling regarding inherited IRA accounts, this may no longer be the case.
Traditionally, companies can offer incentives to employees for the purposes of retention as well as stability including benefits such as pension plans, 401(k)’s, and Individual Retirement Accounts (IRA). Often, these accounts are used for retirement purposes, with many employers matching personal contributions into the account to a certain percentage. These accounts generally have beneficiaries in the event of the death of the policyholder.
The Truth behind Bankruptcy Filing
Americans file for bankruptcy each year as the result of owing more money to creditors than can actually be paid. While often times the term “bankruptcy” is stigmatized and correlated with poor spending habits and large credit card bills, the truth is it is a necessary practice for economic relief in dire times.
Most people who file for bankruptcy are not irresponsible, nor are they trying to use the process as a means of simply walking away from their debt. US News stated in an article, citing a study by The Bureau of Labor Statistics, that as of April 2012 more than 5.2 million people across the country had been unemployed for six months or more. In addition to unemployment as a factor, money lost due to divorce is also a large contributor to outstanding debt, as well as medical expenses.
The Financial Impact of Unpaid Medical Bills
Every year people suffer from medical conditions and injuries that leave them with much more than scars. They are also left with insurmountable bills. These bills can quickly pile up over time and become overwhelming. In the end, filing for a Texas bankruptcy may be the best option for financial recovery.
According to a study published by CNBC, almost 2 million people filed for bankruptcy in 2013 as a direct result of unpaid medical bills. And while it is easy to see how this can happen to someone without health insurance, the truth is that it can happen to anyone.
In 2013 nearly 10 million insured American adults had more medical bills from that year than they could pay off. Insurance plans have increasingly high deductibles and leave members with up to $10,000 in out of pocket expenses.
Exploring Texas Bankruptcy Options
The American economy has seen better days since the financial collapse of 2008, having a significant impact on citizens from all walks of life. The concept of bankruptcy was once foreign to many, whereas in contemporary society it has become a serious reality. In fact, government statistics indicated over a million new bankruptcy cases were filed in 2013. Many residents of Texas in particular have seen hard economic times. It is a trend that dates back decades.
According to the U.S. Census Bureau, Texas has seen a much higher overall poverty rate compared to the rest of the country since at least 1980. Naturally, instances of bankruptcy have followed a similar trend. It is crucial to consult with a time-tested, reliable, and accommodating bankruptcy attorney to ensure your personal needs will be met on an individual basis.
What Are Debt Collectors Allowed to Do?
Debt collectors are only allowed to do so much when trying to acquire money owed from their debtors. And while there are times when debt collectors will go beyond what they are legally permitted to do, having an understanding of what is permitted can help to be determine whether or not a collector has gone too far.
Method of Contact
According to the Office of Consumer Credit Commissioner (OCCC), various creditors use independent debt collection agencies to acquire money owed. With that said, debt collectors are permitted to contact debtors via phone, mail, in-person, telegram, or fax. But, they should not contact debtors prior to 8:00 a.m. or after 9:00 p.m., unless given consent from the debtor. Also, debt collectors should not contact debtors at work, especially if the collector knows the employer does not approve of these contacts.
Rebuilding Life after Filing Bankruptcy
Filing bankruptcy as an individual or a married couple can be difficult to handle. In order to improve your situation following bankruptcy, you will need to perform a couple of tasks that can help restore your finances and your emotional state. Bankruptcy not only affects your wallet, it also affects your state of mind. However, there are steps you can take to rebuild your credit and your life.
End the Feeling of Guilt
When a person files for bankruptcy, he or she will undoubtedly struggle with their emotions. For instance, they might feel like a failure or that they are worthless. The more negative thoughts you have about the situation, the harder it will be to move forward with your life. Look to the future and think positive. When you begin to do this, everything will start to fall back into place.
Post-Grad Unemployment and the Struggles to Find a Job
Even though it seems as if the economy is making a recovery from the 2008 recession, college graduates are still having trouble finding employment. And when you look at the statistics, college graduates are not hit nearly as hard as high school graduates in regards to the job market.
The unemployment rate for bachelors holders is nearly half compared to those seeking work but only maintain a high school diploma. These rates include those individuals aged 25 years or older who completed college, as well as those aged 25 years or older who did not attend college at all. However, despite these improvements, college graduates are still not doing as well as those who graduated during the decade of the 1990s. With that said, unemployment and the struggle to find a job can unfortunately lead to bankruptcy in the future.
What Happens When Chapter 13 Bankruptcy and Divorce Meet?
It is no secret that financial problems can lead to the demise of a marriage. A Chapter 13 repayment plan can ease some of the financial tension that you may be experiencing. However, it cannot fix your marriage.
If you are in a Chapter 13 repayment plan, divorce can certainly change things. Here are the options that you can implement to deal with it.
Chapter 13 Reduction
You may opt to have your Chapter 13 plan reduced in order to make the payments more affordable based on the new circumstances. The type of debt that you carry has a lot to do with this option. Debts such as child support, IRS payments, delinquent mortgage payments, and alimony payments cannot be adjusted. These are all fixed payments. Most of the debts in a Chapter 13 plan are unsecured debt such as credit cards and loans. These can typically be adjusted; however, you do need to consult with your Texas bankruptcy attorney to see what the best option is for you.
Creditor Judgments: What You Need to Know
One of the greatest fears people have regarding bankruptcy is due to the overall negative stigma associated with filing. Another reason for the apprehension is not knowing exactly when the right time is to file for bankruptcy. And often asked is the question, “Is it ever too late to file bankruptcy?”
The short answer is no. However, according to some experts, you will want to file before your rights are taken away because of a judgment.
A creditor has the right to take you to court for any unsecured debt. An unsecured debt is one that does not have an item of collateral attached to it such as a house or a car. This may be for a loan, or even a credit card. Once the creditor wins the case, you will then have a civil judgment against you and a new negative mark on your credit.
New Study Explores American Credit Card Debt
When you hear someone say that they have tens of thousands of dollars of credit card debt, the first thought is often that the person is a frivolous spender. You may envision luxury cars and closets full of Louboutin shoes.
However, based on a report recently released by Demos, that is not the case. The conducted national survey was focused on low and middle-income American households. These two groups were divided based on key pieces of statistical milestones, and main difference between the two was that one group carried credit card debt while the other did not.
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