There are a total of six types of bankruptcies defined under Title 11 of the United States Code. While some of them deal with corporates, municipalities, international debtors and farmers or fishermen, the most common types of bankruptcy filed by individuals and small businesses fall under Chapter 7 and Chapter 13. Chapter 7 involves discharge of certain debts without repayment, whereas Chapter 13 contains provisions which allow individuals with regular wages to develop a plan to repay all or part of their debts over a number of years. Whether an individual qualifies for Chapter 7 or Chapter 13 is partly determined by their income. Chapter 7 is the most common form of bankruptcy in the US with ~65% of consumer bankruptcy filings being Chapter 7 cases.
Credit card companies make it very easy for borrowers to replace the cash in their wallet for the plastic card. Credit card companies spend billions of dollars on marketing cards to borrowers and making them appealing with cashback or airline miles. If you choose to use a credit card to build your credit score, be cautious of these common credit card mistakes.
Recent college graduates receive heavy social pressures from friends or family about when their timeframe for purchasing their first home. However, they might discover that those same student loans that allowed them to finish their studies are now holding them back from purchasing their own home. The National Association of Realtors recently published that 83 percent of the non-homeowners state that student loan debt prevents them from buying a home.
Most of us understand that financial literacy is the key to becoming a successful adult. As adults, sometimes we wish that we learned financial literacy more in high school or younger. Now that some children are getting their education at home or through virtual sources, it could be the time to teach your children about those financial topics you wished you learned earlier in life. Wonderful lessons for children are to teach them how to earn money, spend it, and save for future purchases.
During the COVID-19 pandemic, the United States Congress approved the Coronavirus Aid, Relief, and Economic Security (CARES) Act that allows affected homeowners to skip or delay their payments up to a year. In a recent Census Bureau Household Pulse Survey, 1.3 million homeowners stated that “it is somewhat likely” they will have to leave their current living arrangement in the next two months. The survey ended on August 31. There is a big gap in what the CARES Act promises versus what home lenders provide to their borrowers. Borrowers might have a right to worry if their lenders expect payment as soon as the CARES Act is expired.
Do you have a Federal Student Loan balance? You could benefit by restructuring the terms of your loan! Now is the time to review and change your loan agreement by taking advantage of the interest free and payment deferral period.
Are you a millennial with credit card debt or a student loan? Maybe you have both. Keep reading to see how these two things can affect your credit score and what you can do to improve on it.
Everyone from retail chains, to individuals with medical and credit card debt, and even entire cities can file for bankruptcy. Bankruptcy is sometimes the only way out of debt and while it may have negative short-term effects, it provides a solution to a problem that so many of us will struggle with at some point in our lives. Financial experts and attorneys define the most common debt as “unsecured”. An example of very common unsecured debt is accrued credit card and medical debt. As we know, This doesn’t always happen as a result of a direct mismanagement of our funds. Life can throw us curve balls in the blink of an eye and put us into financial trouble quickly. A perfect example of this our country’s current crisis, the Covid-19 pandemic. There are also things to consider when deciding whether or not to file bankruptcy such as how it may impact your credit, how long the process takes, and the debt thresholds each type of bankruptcy requires. As every situation is different, so let’s discuss each of the most common types.
There’s no denying the enormous economic impact the Covid-19 pandemic is having on American households. Keeping up with fixed expenses such as mortgage payments, electric bills, and car payments has become a major stressor for many. For some, companies are willing to extend due dates, lower interest rates, or even discount the amount owed. That being said, what options are there for student loan borrowers to help during this pandemic? Fortunately, there are options whether your loan is Federal, Private, or through your employer.
A lot of business activities halted as a result of the coronavirus pandemic, and millions of people are out of work for the foreseeable future, with the likelihood of more people joining in. Over 33 million new unemployment claims were filed and with the job losses on the high scale, recovery will be very slow irrespective of the federal stimulus. So, how will those that have lost their source of income be able to keep a roof over their heads? Many people will fall behind on their mortgage and rent payments, and this will result in a looming foreclosure predicament. In this article, we will discuss how renters and homeowners can protect themselves and avoid foreclosures during this pandemic.