Tag: Miami bankruptcy attorney

student loan debt, Student Loans

4 Student Loan Relief Measures that should be Implemented if Payment Pause Is Not Extended

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It remains unclear whether the student loan repayment pause will be extended by President Biden. Two primary economic concerns urge the delay of payments past Feb. 1: Rising Omicron cases could jeopardize workers’ return to work, and given the pandemic-exacerbated racial disparities, borrowers of color will face ‘undue hardship’ if payments are restarted too soon.

If that’s the case, the organizations recommend four additional protections for student loan borrowers:

  1. Continue to waive interest for all borrowers;
  2. Return all borrowers in default on their debt to good standing to avoid financial penalties;
  3. Ensure all borrowers are aware of the process to apply for an income-driven repayment plan;
  4. Announce and implement provisions, like offering a grace period to prevent borrowers from immediately becoming delinquent on their debt.
Debt Collection

How to Dispute a Debt with a Debt Collector

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Debt collectors can be relentless. They will attempt to contact a consumer through any means necessary to collect on a debt. Financial hardships can be stressful enough but dealing with the additional stress of collection calls can be a large burden in a person’s life.

Surprisingly, this burden is even dealt with by people who don’t owe any debt at all. In fact, according to Forbes, around 52% of debt collection complaints received by the Consumer Financial Protection Bureau in the last year were made by consumers that claimed they were being contacted regarding debts they did not have.

Bankruptcy Law, Consumer Bankruptcy

When Should I File Bankruptcy?

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Chapter 7 bankruptcy is a powerful legal tool that allows those in financial crisis to cancel debts such as medical debt, credit card debt, and unsecured personal loans.

As soon as a Chapter 7 bankruptcy case is filed, the consumer receives immediate protection from his or her creditors. This protection comes from the automatic stay that is issued by the court upon filing. The automatic stay puts a pause on all collection actions, including collection phone calls, legal proceedings to collect on a debt, wage garnishments, evictions, and foreclosures. The automatic stay also gives consumers a chance to breathe and work with the court and bankruptcy trustee.  

Credit Card Debt

Paying Off Credit Card Debt? Avoid Making This Common Mistake.

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Paying off credit card debt can be hugely rewarding. Just last year, Americans broke the record for credit card debt paid off, coming in at $83 billion. However, when it comes to paying credit card debt, many Americans make a mistake that can have a lasting effect on their credit scores.

In an effort to avoid amassing greater debt while preparing to pay off the existing debt, many will halt the use of their credit cards. This can result in the closing of your credit card account due to inactivity. When a credit card account is closed, your credit report can seriously suffer. This is due to the debt-to-credit ratio. This metric represents the amount of credit utilized versus what credit is available for the consumer. When losing a line of credit due to inactivity, your available credit declines and the distance between what is used and what is available increases.

Credit Card Debt

1 in 3 Shoppers Still Paying Off Last Year’s Holiday Debt

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Going into the 2021 holiday season, an estimated 29% of shoppers that used credit cards for purchases are still struggling to pay off holiday debt from last year.

Following a record amount of credit card debt payment from Americans in 2020, card balances have already risen again by around $17 billion in 2021. With holiday spending expected to reach a maximum height this year due to product shortages, it will be especially difficult for shoppers to keep up with holiday debt.

student loan debt, Student Loans

First Wave of Public Servants Awarded Student Loan Forgiveness Through Temporary Program

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The Biden administration recently announced the introduction of a temporary expansion of the Public Service Loan Forgiveness program. The program cancels outstanding student debt for public servants.

In order to be eligible, debt holders must have made 120 payments toward their federal student debt on-time for at least 10 years. The loans must have been made through the federal government and payments must have been made through repayment plans, most of which are based upon income. They must also work for the government or one of the non-profit organizations specified by the program. Many teachers, public defenders, Peace Corps workers, and law enforcement officers may qualify for forgiveness.

Debt in Divorce, Debt Relief

How Debt is Handled in Divorce

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In a divorce, the married parties end up dividing assets accumulated during their marriage. Most people going through a divorce worry about dividing up their property and other assets. However, dividing up debt is just as important- if not more. This is of particular importance if the spouses do not have many assets.

A divorce judgment is where the court divides up the couple’s assets, as well as their debts. Part of this order involves determining which spouse is responsible for which debts. Normally, debts are divided equally between the parties, but that is not always the case when one spouse earns significantly more than the other or where one spouse is receiving more property that has debt connected to it than the other spouse.

Medical Debt

Medical Debt Is Different: Know How To Deal With It

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It only takes one major medical emergency to set a person back thousands of dollars, even with adequate health insurance coverage. This is why medical debt is one of the largest categories of unsecured debt discharged in bankruptcy.

Many consumers resort to solutions such as paying medical expenses with credit cards or taking out personal loans to pay them off, but many times, these solutions only put them in more financial distress.

Foreclosure Defense, Foreclosures, Housing Market Trends

Mortgage Debt Remains a Problem for Homeowners 55 and Older

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Homeowners throughout the country have struggled with staying afloat and remaining in their homes during the COVID-19 pandemic. With no immediate end in sight to the pandemic, it appears as if that problem will continue, especially those in the 55 and older age group.

The U.S. Census Bureau reviewed household statistics through its biweekly Household Pulse Survey to see how homeowners are faring with remaining current on their mortgage obligations. Their most recent study covered the period of September 1 through September 13, 2021. According to the Census Bureau, 1.7 million homeowners ages 55 or older were reportedly behind on their mortgage payments. Of these 1.7 million homeowners, 277,000 of them said that the possibility of facing foreclosure was likely or very likely for them.

Credit Card Debt, Debt Relief

How Much of Your Monthly Income Should go Towards Paying Down Debt?

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Consumer debt. It seems to be an inevitable part of life for many Americans. In fact, most American consumers carry some level of debt. Getting out of it, however, is not so easy, which is why so many Americans use at least some portion of their income to pay towards their debt. Determining how much is appropriate can be complicated, depending on the consumer’s individual circumstances.

Generally speaking, it is important to pay more than the monthly minimum payment. A good rule of thumb is to follow the 50/30/20 rule. What this budgeting rule entails is the consumer spends 50 percent of monthly after-tax income or net income towards essential living expenses, such as mortgage payments, utility bills, food, and transportation costs. After that 50 percent is paid, the consumer allots the next 30 percent to his or her “wants,” meaning eating out, going on vacation, and other non-essential expenses. The remaining 20 percent is left for paying off debt or saving for the future.