When it comes to filing for bankruptcy, several different options are available, depending on the filer’s financial situation and types of debt owed. Two of the most common forms of consumer bankruptcy filings are Chapter 7 and Chapter 13.
Chapter 7 is a liquidation bankruptcy that wipes out most of your general unsecured debts such as credit cards and medical bills without the need to pay back balances through a repayment plan.
Many South Floridians are finding themselves out of work due to the coronavirus (COVID-19) pandemic. This loss of income can be devastating and make it difficult to continue paying monthly expenses, including credit card debt.
Before the crisis hit, credit card debt had reached an all-time high after the Federal Reserve reported that the fourth-quarter of 2019 credit card debt increased by $46 billion to $930 billion nationwide. It is expected that balances will only increase as Americans find themselves shut in with limited income being earned. Additionally, serious delinquencies were on the rise at the end of 2019, and these numbers are also expected to trend upward, specifically for consumers between the ages of 18 and 29.
Filing for bankruptcy allows people to get a fresh start financially and erase past debts, but a legitimate concern many consumers have is the effect it will have on their credit score and their ability to take out credit, again.
One of the biggest misconceptions about filing for bankruptcy is that it will ruin your credit score and your financial future. To the contrary, after filing for bankruptcy you can begin restoring your credit right away.
The coronavirus (COVID-19) crisis has hit the American economy hard, which is evident in the number of unemployment claims being filed. It has been reported that approximately 17 million American workers have filed for unemployment over the course of three weeks after many businesses have shuttered.
Research from three different Federal Reserve banks have shown that bankruptcies related to the economic downturn from the COVID-19 crisis could increase by 200,000 to reach a record 1 million filings. However, this increase is possible only if government stimulus programs do not offset this increase.
The coronavirus (COVID-19) crisis has hit South Floridians hard. With stay at home orders issued, many are finding themselves out of work and stuck at home. Many have lost their jobs due to temporary or even permanent layoffs. Without a reliable source of income, these individuals may find themselves struggling to pay their bills. The following tips can help consumers manage their debt during this difficult time.
Federal Student Loan Payments
Under the federal Coronavirus Aid, Relief and Economic Security Act or CARES Act, which was signed into law by President Trump on March 27, 2020, federal student loan payments held by the U.S. Department of Education will be suspended for a period of six months with no interest accruing until September 30, 2020. This payment suspension occurs automatically and does not need to be requested by the individual.
The coronavirus (COVID-19) has hit our nation’s economy hard, with many Americans finding themselves suddenly out of work. Countless small businesses have had to close their doors due to the spread of the coronavirus. Financial assistance is available during the COVID-19 crisis.
A record number of American workers filed for unemployment last week, which totaled 3.28 million people. The biggest form of financial help comes in the form of a recent $2.2 trillion stimulus package passed by Congress just last week. President Trump signed the stimulus bill into law on March 27, 2020.
The recently passed $2.2 trillion stimulus bill provides several different forms of financial assistance for American consumers during the current coronavirus (COVID-19) crisis. The new bill also provides options for student loan borrowers who are struggling to keep up on their loan payments, which comes as good news for the over 44 million borrowers holding more than $1.5 trillion in outstanding student loan debt.
Borrowers who have federally owned student loans will not have to pay on their loans through at least September 30, including Parent PLUS Loans. This payment suspension will occur automatically and does not need to be requested by the borrower.
Credit card debt is a problem that countless consumers struggle with. But according to recent data provided by Experian, Gen X consumers carry more credit card debt than any other generation.
Experian’s data showed that Gen X holds the highest average credit card balances at $8,658. As members of Gen X approach middle age, many of them raising families, they are also struggling to pay down credit card debt they have been holding since their 20s.
The coronavirus (COVID-19) has hit American consumers hard, putting many of them temporarily out of work. Relief efforts have been made on a state-by-state basis to assist consumers.
New York residents have been given a 30-day freeze period from state-owned medical debt and student loan debt collections. Another similar announcement came from the mayor of Chicago with respect to city debt through April 30, 2020. The Department of Education has suspended collections on federal student loans, and they are encouraging private student lenders to do the same.
