Puerto Rico’s government is in significant financial disarray. The country’s finances and fiscal policy are controlled by separate entities that cannot agree on what is best for the country. The government is more than $123 billion in debt, and the country lacks the infrastructure to climb out the hole. The citizens are shouldering much of the burden of the country’s bad fiscal management.
When someone thinks about New York City, taxi cabs are often part of the mental image. What most people do not realize is that drivers and/or taxi operators must purchase the right to drive in NYC. A “taxi medallion” is often purchased by investors or the drivers themselves. These medallions are treated similarly to a stock. The value goes up and down, but the market is much less regulated. Over the last 20 years, drivers have been duped into terrible loans required to purchase their medallion and bankruptcies are on the rise.
If you own a company and have had to file for bankruptcy from 2017-2019, you maybe be interested to know that a court case has been filed against the fees implemented by the federal government. These extreme fee hikes are in effect in every state except Alabama and North Carolina, which may strengthen the unconstitutional label the court case is trying to attach to the federal government’s actions.
WOW Air was an Icelandic Airline company that breathed its last breath on the 29th of March 2019. It started back in 2011 as one of the most successful low-cost airline companies providing cheap flights between Iceland and Europe. However, what caused the demise of the apparently successful company was its wish to transform into a more prominent global business.
We have seen many giant retailers succumb to the pressures of an ever-changing retail landscape. The traditional retail business model is all but obsolete. The latest hobbling giant is Pier 1 Imports. While they have not filed for bankruptcy, they have tapped into some resources which are indicative of debt restructuring.
Married couples often share the same debts, but that is not always the case. There are bankruptcy filing options for both situations. One partner may need to wipe out their debts but want to avoid harming the other partner’s credit. In some states, it can be beneficial to file for bankruptcy jointly. Before deciding, you should know the pros and cons of each filing option for married couples.
One Spouse Filing for Bankruptcy
If a couple is in a situation where only one of the two partners needs to file for bankruptcy, filing individually may be the right choice. An individual can file for chapter 7 or chapter 13 bankruptcy.
Foreclosure is the last thing you want when you are already having trouble in life. There is a multitude of reasons you may find yourself in financial trouble bad enough to warrant bankruptcy, a short sale, or foreclosure. The situation may seem hopeless, but there may be an option you are unaware of. In some cases, you may be able to sign over the deed to your house to the lender and release yourself from the burden of the debt.
A Deed in Lieu
Rather than losing your house through short sale or foreclosure, you may be able to convince the bank to take your deed. Some banks are not willing to let you short sell. In this case, while you may not feel compelled to help the bank, you could free yourself of the debt by giving them the deed. While this may be a good option for many, it is far from a sure thing.
A homeowner can sell their home for less than they owe if the circumstances are right. This is called a “short” sale. Short sales are often beneficial for the seller, the buyer, and the creditor. A person can market the sale as a short sale to attract buyers. This may sound like an easy out for someone who cannot make payments, but there are negative consequences to be considered when considering a short sale as a debt relief option.
So, What Is a Short Sale?
A “short” sale of a home is when the seller sells their house for less than they owe the mortgage lender. If someone is behind on payments, they may consider this as an option to avoid foreclosure or bankruptcy. In order to be able to utilize the short sale option, the seller (debtor) must apply for permission from the bank (creditor). Why would a bank agree to this? In many situations, they can recuperate more of the owed money than they might be able to if the debtor files for bankruptcy or the home is foreclosed on.
There may be new evidence that a strong job market does not necessarily lead to financial freedom for individuals. Over 7 million Americans are at least 90 days behind on their car payment. A car is a necessity for most people and the idea of losing it to repossession is enough to keep them awake at night. What can these individuals do to get back on track?
Who Is Struggling with Car Payments?
According to a recent article in the Washington Post, the majority of the people that are 3 months behind on their payments are under the age of 30. They have low credit scores and they are finding it difficult to pay their monthly student loan bills. A large portion of these borrowers are “subprime” meaning their credit score is under 620. Most of the borrowers that are more than 90 days late on their payments received their loans from a “car finance” company as opposed to a traditional credit union or bank. Less than 1% of borrowers from credit unions are 90 days late on payments.
Medical bills are the number one reason for bankruptcy in the United States. Multiple studies have shown the in 25% – 50% of bankruptcies, medical debt was significant. However, the answer to the question ‘is medical bankruptcy a real thing?’ is ‘no’. While medical bills are a heavy contributor to personal bankruptcy, it is not its own form of bankruptcy. It is, however, an interesting topic that has reached as far as Washington D.C. and ‘medical bankruptcy’ is a term that is resurfacing as Elizabeth Warren begins her bid for Presidential election in 2020.
What is ‘Medical Bankruptcy’?
This is a concept that was first made famous by a couple of papers written by a group which included Elizabeth Warren in 2005 and in 2009. The papers claim that at least 50% of all bankruptcies were caused by medical debt. A ‘medical bankruptcy’ is one that is linked to substantial medical debt. Many experts have since refuted the accuracy of the claim. However, what cannot be refuted is that medical debt is a major contributor to many bankruptcies.
Can You File for Personal Medical Bankruptcy?
In short, no. There is no legal version of bankruptcy called ‘medical bankruptcy’. In terms of personal bankruptcy, you are mostly limited to chapter 7 and chapter 13 depending on your income limitations. That does not change the fact that debt related to medical expenses is a serious consideration when filing for any type of debt relief. Medical debt is considered ‘unsecured’. This means, just like credit card debt, it can be reduced or even eliminated during the bankruptcy process.
When Should You File for Bankruptcy Due to Medical Debt?
Well, there are many factors that go into the decision:
- Are you behind on medical bill payments?
- Are you missing payments altogether?
- Are you receiving snail mail and phone calls from collectors day and night?
- Are you behind on other bills such as mortgage, credit card, and car loans?
If the answer is ‘yes’ to even half of those questions, it might be time to talk to a professional. In many cases, medical debt is valuable and debt collectors do not give up easily. Harassment from debt collectors does not have to be a way of life for you. Elias Dsouza is a skilled and licensed attorney that is equipped to guide you through any debt settlement process. He can help you determine if bankruptcy or debt settlement is the right answer for you. Contact Elias today for a free consultation.