Economics Finance

The medical bills are piling up in the mail box. You can’t afford to pay them even with health insurance. Let alone without any insurance at all. So now you are considering bankruptcy as the only way out. Filing bankruptcy in the long run wont really solve the problem. What if you get sick again, and the bills start piling up again? You can always file again in 7 years but you may end up with two bankruptcies on your credit report. What is the solution to this stressful problem?

You can get someone else to pay for them. Especially if you are unemployed, and have large amounts of medical debt. Apply for the medicaid program through your state government. Whether you are a man or a woman you may qualify for aid. Although women, & pregnant women usually have a somewhat higher approval rate. You may even qualify if you have a mental disability like depression. Submit all of your bills along with the application. Continue reading ‘Filing Bankruptcy Due to Medical Illness is Not the Solution to Your Sleepless Nights’ »

If we look at the latest stock market activity, with the S&P 500 up more than 40% since the March lows, people looking for ways to repay debt are facing an interesting dilemma. Although interest in debt removal, debt elimination plans, and other debt settlement information has peaked over the last couple years, people with debt trouble should really evaluate positive ways to repay debt. Here is why.

Stock Market Returns Are Leading Indicators

We hear all of the time about leading and lagging indicators. A leading indicator tells us what is expected to happen (higher stock market returns suggest companies are expected to make more money). Lagging indicators tell us what has already happened but is only surfacing now — for instance, the statistic on higher bankruptcy filings tell us that more people were unable to repay debt. It does not mean that they cannot repay debt today, but when they filed they had no other means.

With this in mind, with so many companies expected to become more profitable going forward, it seems employment expectations should improve as companies spend on expansion and other plans. Instead of looking up debt settlement information, which will damage credit, looking at more creative ways to repay debt might make more sense. Continue reading ‘Stock Markets Gains Tell Us to Repay Debt, Not to Write it Off Through Bankruptcy’ »

If you are at a point where you are considering the possibility of declaring yourself bankrupt as a last resort to deal with debt problems, then it is probably fair to assume that the last thing in the world you want right now is another bill. For this reason, a number of people look to attempting a do it yourself bankruptcy, that is to say, they seek to go it alone without the assistance of a lawyer.

But let’s get straight to the point. A do it yourself bankruptcy is NOT feasible.

You might have heard people talking about how they went through a do it yourself bankruptcy successfully but the chances are that this was before 2005. Continue reading ‘If You Are Considering a Do It Yourself Bankruptcy, Read This First!’ »

A recent study shows that 62.1% of personal bankruptcy cases in 2007 were linked to medical expenses. Given our countries financial crisis it’s safe to say that this is an even bigger problem today in 2009. In this study released by Harvard professor Elizabeth Warren it showed that most medical debtors were middle class families that owned homes, were employed, and 75% had health insurance.

So what does this study reveal about our current health care situation? One serious illness can cause unaffordable medical expenses or a decrease in or lack of income which results in bankruptcy. Most families have nothing to fall back on if they become ill and lose their job, which consequently causes the loss of health insurance.

Most all bankruptcy debtors had some medical debt, but about half of the debtors, according to the study had mostly medical debt. While this study only encompasses a handful of bankruptcies, 2,314 to be exact, it does make sense. In 2005 laws were passed to make bankruptcy a bit harder to obtain, yet the numbers increased after a few years. Continue reading ‘Tough Times and Health Problems a Recipe For Bankruptcy’ »

Debt is becoming a serious problem for many people as the economy remains in recession, but is bankruptcy a good way of escaping your debt problems?

This article discusses the impact of bankruptcy to help you decide if this is a good way of freeing yourself from your debts.

Bankruptcy is one of the forms of insolvency available for people who are unable to settle their debts. It is a legally binding agreement between you and your creditors that protects them from pursuing you for the money that you owe.

As debt problems mount, you can actually voluntarily declare yourself bankrupt if you owe more than £750. Your creditors also have the power to force you into bankruptcy should they feel that there is no other alternative.

Bankruptcy has major implications that you should consider carefully if you are facing a worsening debt crisis. Continue reading ‘Is Bankruptcy a Good Way of Escaping Worsening Debt?’ »

The declaration of bankruptcy under Chapter 7 discharges the bankrupt person from honouring all debts. But under Chapter 13 it is not so. The debts are required to be paid within a fixed time frame and it is done under court supervision.

A bankrupt person under Chapter 13 bankruptcy can obtain a bankruptcy equity home loan even though he may not be an ideal client for a lender. A sub-prime lender will refinance your home with a substantial amount where it would normally be difficult to have access to a mortgage in a conventional manner. Those who have bad credit ratings benefit from large amounts of money in the form of loans from these sub-prime lenders who are mostly interested in the property rather than the bad credit, although they may require to know your capacity to repay. The lender charges a high rate of interest on these loans as his service is also charged for. Continue reading ‘How to Get a Bankruptcy Equity Home Loan’ »

Are you in a bad spot right now? Maybe you’re facing a lot of debt because of illness, injury, or just hard times. If you want out of debt, you have many options to get on the right track. Just like everyone else, you want the very best for yourself and your family, but the bottom line is that you have to survive.

If you feel like your debt obligations are overwhelming, you may be thinking that the best option is to file for bankruptcy. While you should not take this route unless you are sure that you do not have any other options, there are ways of telling what you can do, and many people to help you through your difficult financial problems.

One of your options is to seek out financial counseling. This might sound like just another thing for you to have to worry about paying for, but it is not. You should not have to pay for a bankruptcy evaluation. There are many places that offer free bankruptcy evaluation and consultation.

Do not pay for services like these, otherwise you will not be sure if you are getting honest help. Friends and family might have advice for you during this time in your life, and this is fine. However you should always ask someone who is experienced in bankruptcy evaluation and consultation before you decide if bankruptcy is right for you. Continue reading ‘Perhaps Bankruptcy Can Get You Back on Track’ »

One thing I’ve never understood is why some people insist on going it alone. No matter how difficult the situation may be, they feel that they have to prove something to themselves and to their loved ones by not seeking assistance from professionals. This is usually a foolish attitude to have when you are stuck in a serious life crisis, and that is especially true if you are considering declaring personal bankruptcy.

You may have heard some people talk about filing bankruptcy online by filling out a few forms or trying to go through the process without the assistance of a lawyer. Let me tell you why that is not a good idea.

The bankruptcy laws have changed in recent years, and they have become increasingly complex. Even lawyers have complained about the confusing language in the statutes. Even though the new bankruptcy law contains the words consumer protection, this federal law does nothing to help consumers navigate their way to financial recovery. Continue reading ‘Filing Bankruptcy Online Without a Lawyer is Not a Good Idea’ »

Assuming that paying your tax bill in full is not an option, there are many options available if you need IRS tax help. You may actually find that you don’t need to do anything to resolve your back tax situation. This is because the IRS has only ten years to collect back taxes starting with the date on which the taxes were assessed. As a result, if you know that you have unpaid taxes that are older than ten years, the IRS may not be able to collect those taxes anymore.

Fortunately, for those that can’t afford to pay, there are other options available. The options consist of an Offer in Compromise, Installment Agreement, bankruptcy (under certain conditions), and Currently Not Collectible status.

There are many issues that need to be considered before back taxes can be discharged in bankruptcy. You must examine the age and type of the back taxes. Generally, recent federal tax assessments cannot be discharged. The same is true with back payroll taxes.

An Offer in Compromise can be complex. It requires disclosure of all of your financial information and will more often than not be rejected. But if you still need IRS tax help there are other available remedies if your offer is rejected. Continue reading ‘Need IRS Tax Help? The Solution to Your Tax Problem’ »

Statistics show that a certain demographic is likely to file for bankruptcy and with the largest “reason” for filing being a loss of income; this demographic is highly likely to be filing in 2009 and 2010 as unemployment reaches into the double digits. We explore this demographic in greater detail and discuss three simple ways that people can fly “under the radar.”

Unfortunately, with rising unemployment it is quite likely that bankruptcy filings will continue to rise. According to national statistics released by the Administrative Offices of the Courts, US Chapter 7 bankruptcy filings were up 43% in 2008 (from the prior year). There is no reason to expect the trend to reverse dramatically for 2009.

With over 1 million filers each year, it should not come as much of a surprise that people are getting over-extended on their credit. And it makes sense, too. With an average age of 38, your typical Chapter 7 bankruptcy filer is also more likely to be a married couple. Continue reading ‘Married and in Your Late Thirties? Bankruptcy Might Be Around the Corner’ »