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Bankruptcy in the Wake of Coronavirus

People all over the world are facing financial strain because of the Coronavirus pandemic.  It may feel as though you will never recover or that you will lose everything because you cannot afford to pay the bills.  There are many ways to get the help you need and there are tools to help you get out from under the crushing weight of debt.  Your financial burden is not permanent.  Here are some things to consider.

What Does Life Look Like After Bankruptcy?

Contrary to the popular saying, filing for bankruptcy is not a bad thing. It is, in fact, a good thing as it eventually gives you the opportunity to have a clean financial slate. If your credit is in shambles, bills are piling up, your rent is due, and you have no means of making your monthly payments on your credit card – you should consider filing for bankruptcy. Chapter 7 bankruptcy is the best option if you can’t make your credit payments, but if you need a payment plan to pay back all your debt, you should opt for Chapter 13 bankruptcy.  After filing for bankruptcy, all of your unsecured debts would be discharged, and you’ll have a clean financial slate – but it is not always easy. The red flag on your credit report that indicates you’ve filed for bankruptcy will make it hard to get any kind of loan or credit. Also, it will remain on your report for seven to ten years, depending on the type of bankruptcy you choose. In this article, we will discuss what life looks like after bankruptcy and how to build your credit after.

Warning Signs of Financial Trouble

Despite the fact that many people make a substantial amount of money, they find themselves living paycheck to paycheck, which eventually lands them in financial trouble. Why, you might ask? Well, it is because a large number of people have really poor financial habits. However, financial troubles don’t just spring up from nowhere – there are always warning signs. Many people tend to ignore these warning signs until it blows up in their faces. In this article, we will be discussing these financial trouble warning signs extensively.

Charge-Offs: What They Are and How to Get Them off Your Credit Report

One of the worst things you can have on your credit report is a charge-off. What is a charge-off, you might ask? A charge-off happens when an account has been behind on their credit card, mortgage, or other debt payments – usually after 180 days of not paying the required minimum payment. The creditor designating your debt as charged-off doesn’t mean you will not be required to pay the debt. Quite the contrary as the charge-off will stay on our credit report for seven years from the date it was reported as a charge-off. This would no doubt cause substantial harm to your credit score, affect future credit and loan applications — no one wants that. In this article, we will discuss charge-offs in detail as well as the steps to take to get them off your credit report.

Can You File for Personal Bankruptcy Multiple Times?

When a person is unable to pay back their outstanding debts, they can file for bankruptcy. There are two different types of bankruptcy- personal and business bankruptcy, but they are generally viewed as a means to getting a fresh financial start. People usually file for either a Chapter 7 or Chapter 13 bankruptcy when filing for a discharge.  A Chapter 7 bankruptcy is for people who don’t have the means to pay back their debts while a Chapter 13 is for those who require a payment plan to be able to pay back their debts. You might be wondering if you can file for personal bankruptcy multiple times, and in this article, we will discuss this in detail.

How to Escape Debt on a Tight Budget

Even when you have a lot of money coming in, it can be difficult to escape debt, even more so when you are living paycheck to paycheck. Yes, it is difficult, but it isn’t impossible. It is very possible to escape debt even when you are on a tight budget. If you find yourself overwhelmed by debt and convinced you could never escape it – we are here to tell you it is possible while showing you how. In this article, we will look at different ways you can dig yourself out of debt on a low income.

Steps to Take If You Are Sued by a Debt Collector

It can be scary to receive a letter that you are being sued by a debt collector. Different scenarios will probably be going through your head once you receive the letter, but don’t fret; it’s not a rare occurrence. There are different reasons why you are being hit with a debt collection lawsuit, one of which is if you have an old, unpaid debt. There are a few steps you can take to avoid getting into an even worse situation, and in this article, we will discuss them.

All About the Earned Income Tax Credit (EITC)

The Earned Income Tax Credit is a refundable tax benefit for low- and moderate-income earners – this means that these workers will be able to get their money even if they don’t owe tax. There are, however, a number of requirements that are needed before you can qualify for the benefit. The amount of the refundable tax credit given depends on different factors like income, number of children, and others. You can see if you qualify by using the EITC Assistant on the IRS website.  If you qualify for the credit, it is essential that you claim it when you do your taxes. You are still qualified for the tax credit even when you haven’t claimed it when you filed your taxes for over two years. In this article, we will discuss Earned Income Tax credit, how to qualify for it, how much you can get, and more.

People Being Arrested for Debt

Congress abolished debtors’ prison in 1833, but in reality, the prosecutors’ offices and the courts have empowered debt collectors to make use of this same criminal justice system to terrorize and punish debtors into paying the debts they owe. These debts range from consumer debt to car payments to student loans to utility bills to medical bills. This development is very disheartening if you consider that private collection agencies now control the debt of over 70 million Americans, including low-income families.

Behind on Car Payments? Here Are Some Tips to Get Back on Track

Whether you are single, married, or have kids, your monthly car payment is your ticket to freedom and a fully paid-for car that can take you and the family from point A to point B. However, if you can’t fulfill your monthly obligations, this can easily turn into a financial disaster. One of the major ways of maintaining your financial situation is by paying your bills on time – not doing this will affect your credit score and limit how much credit you can get.