Tag: Kingcade

Coronavirus, COVID-19, student loan debt

Tips for Keeping Student Loan Debt Under Control During Covid-19

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Student loan debt was already a financial burden for many Americans, but the COVID-19 crisis has made it worse. It helps to understand what options are available for borrowers who are struggling to keep up with their student loan debt during this time of crisis.   

Federal Assistance and Forbearance

In March 2020, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act in light of the growing pandemic. The CARES Act includes certain provisions that lighten the burden carried by student loan borrowers. As of March 13, 2020, most federal student loans were put on administrative forbearance which means no payments were due, beginning March 13, 2020 and ending September 30, 2020.

Bankruptcy Law, Coronavirus, COVID-19, Debt Relief

How Has the Coronavirus Affected Bankruptcy Filings?

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Even though unemployment filings have skyrocketed, and countless businesses have been struggling during the coronavirus pandemic, bankruptcy courts have not been flooded with new cases- yet.

When compared to bankruptcy filings in April 2019, there were 47 percent fewer consumer bankruptcy filings in April 2020, according to the American Bankruptcy Institute (ABI).

Bankruptcy Law, Coronavirus, COVID-19, Debt Relief

Coronavirus and the Changes it has had to the U.S. Bankruptcy Code

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The coronavirus pandemic has affected our country in so many ways. It has also affected the U.S. Bankruptcy Code, specifically through the recently passed $2.2 trillion Coronavirus Aid, Relief and Economic Security Act (CARES Act).

Within the CARES Act were revisions to parts of the U.S. Bankruptcy Code, meant to help small businesses and consumers during this difficult time. The CARES Act amended the Small Business Reorganization Act of 2019 (SBRA), which temporarily increased the debt threshold for filing for Chapter 11 Bankruptcy relief. The debt threshold increased from $2,725,625 to $7,500,000. After one year, the threshold will go back down to the original amount.

Credit Card Debt, Debt Collection, Debt Relief

What Happens to Unpaid Debt When A Person Dies?

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Given the amount of debt consumers carry during their lifetime, it comes as no surprise that for many people this debt will remain unpaid after death.  What happens to that debt when the person who was originally responsible for the debt passes away?

Ultimately, how that debt is handled depends largely on the type of debt owed. After someone dies, anything that person owned at the time of his or her death and anything he or she owed is all a part of the deceased individual’s estate.  Essentially everyone has some type of debt when they die, even if it is just payment for funeral and last medical expenses. All this debt will need to be handled in the person’s estate by the personal representative, either appointed in a Last Will and Testament or appointed by the probate court.

Coronavirus, COVID-19, Debt Relief, student loan debt

New Legislation Provides Student Loan Forgiveness to Frontline Healthcare Workers

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Healthcare workers on the frontlines are putting their lives at risk every day during the coronavirus (COVID-19) pandemic, which has many asking what can be done to financially help these dedicated individuals.

Rep. Carolyn Maloney (D-NY) plans to introduce new legislation that will do just that by forgiving outstanding student loan debt carried by these frontline healthcare workers. The legislation is titled The Student Debt Forgiveness for Frontline Health Care Workers Act. The hope behind this new legislation is that by forgiving student loan debt for these workers, a large financial burden will be lifted. Additionally, this incentive could possibly drive others to join the healthcare industry and continue the fight against COVID-19.

Bankruptcy Law, Credit Score

Tips for Rebuilding Credit After Bankruptcy

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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.

Bankruptcy Law, Credit Card Debt, Debt Collection, Debt Relief

Tips for Gen. X’ers Battling Credit Card Debt

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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.

Credit Card Debt, Debt Relief

Understanding the Difference Between Good and Bad Debt

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Debt can oftentimes come with a negative connotation, but not all consumer debt is created equal. In fact, some types of debt are better than others. It is important for consumers to know the difference between the two types before taking on additional debt.

Good debt, for the most part, is debt that is used to help a consumer pay for goals or purchases that will enhance his or her overall wealth. Debt in this category includes mortgages and student loan debt, as well as small business loans. These types of debt tend to carry low interest rates and are tax deductible. Good debt is associated with a piece of property or collateral to guarantee the debt, although that is not always the case, such as with student loans.

Debt Collection, Debt Relief

What Rights Do Consumers Have When it Comes to Debt?

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When someone is in debt, he or she may feel trapped with nowhere to turn. According to Northwestern Mutual’s 2018 Planning & Progress Study, the average American consumer has $38,000 in debt, not including their mortgage.

As soon as creditors or debt collectors begin contacting the consumer regarding what he or she owes, the person may feel like he or she has no choice but to do whatever is being demanded of him or her. However, most consumers do not realize that they do, in fact, have rights when it comes to debt they owe. It helps to know what these rights are when debt collectors or creditors come calling.

Debt Collection, Debt Relief

Tips for Getting Your Debt Out of Collections

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Getting out of debt can seem like a never-ending battle. Once someone falls behind on one or more bill payments, the debt collector calls can be relentless. The late fees and penalties that are often assessed on past-due accounts, not to mention the interest rate spikes that come along with missing a payment, can make getting back on one’s feet nearly impossible. There are certain steps that can help consumers who are facing these types of situations get out of debt and stay out.

Remain Calm.

It can be easy to react out of stress or panic and make decisions that someone would not normally have made, especially when dealing with debt collectors. It is important that whatever decisions are made by the consumer are ones that are carefully considered and logical. Many consumers may react out of fear and enter into payment agreements that they would not normally agree with and cannot realistically afford just to get the debt collector to back down. The aggressive techniques used by many debt collectors have this motive in mind. Make sure you understand and get the terms in writing, first. Never agree immediately to a payment arrangement over the phone with a debt collector.