Articles Posted in Bankruptcy

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Plastic Creates Havoc credit-cards-300x200

 

Folks love it when things are easy. Convenience is desirable, and people take advantage of it whenever possible. Expediency is the reason why people use credit cards so often. No one has to worry about carrying large amounts of cash, and all it takes is a swipe of a card to get a purchase transacted. Credit cards, however, are dangerous to financial wellness. They can cause some serious problems.

Plastic Can Be Overused

Retailers will not openly admit it but they appreciate the use of credit cards because of potential over purchasing. It is a well-known fact that customers will buy more if they use the plastic. It does not take long before a cardholder has a large balance on the credit card. The balance carries with it an interest charge that is in double digits. The interest charge means that the balance can quietly grow to larger and larger figures. Continue reading

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People should know about the value of their holdings

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Assets are going to change in a working career. It is not just collectibles but financial matters such as insurance, stock investments, annuities, and other important things that pertain to financial wellness. It happens too often that these gather dust. A person might not remember having an E*TRADE account or a small life insurance policy that is paid up. These are all important things to know to have a healthy financial wellness position.

Knowledge is important, and awareness is critical. Anyone who is drafting a will must realize the lawyer will require an idea of what the assets are. Lending institutions will determine if a loan will be authorized based on the assets of the individual. Countrywide Pre-Paid Legal Services knows that many people are not fully aware of what their full value happens to be. We have an asset inventory management program to allow people to know what it is they own. Continue reading

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Plastic Cards Do Not Need to Rule Your Life

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Folks often live by credit, and that plastic will destroy financial wellness. The tragedy happens when people forget the small print credit card companies are so famous for writing. Within the agreement for a credit card are stipulations for penalties and interest rates. They can be very sobering.

Make no mistake about it; financial institutions make a lot of money from credit card interest. Double-digit interest charges are standard, and this is at a time when the prime rate is incredibly low. The loss of financial wellness may not be due to the purchase but of the interest charged on the credit balance. People look for ways to get out from underneath the load but don’t always understand what to do. Continue reading

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                                                                                There are Other Ways Out of Debt Trouble

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A recent college graduate does not always have the tools necessary to deal with financial challenges. College debt is a major issue. Many people leave college with debt well into the five figures and are not quite sure how to handle it. Regrettably, they sometimes take the easy way out. It can jeopardize financial wellness. The most common steps taken are to use forbearance or, in extreme cases, declaring bankruptcy. Forbearance essentially allows a college graduate to put off until tomorrow the debt which is owed today. This does not make the obligation go away. Instead, it means that college debt is something that takes years more to pay off. Continue reading

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stockfresh_299770_broke_sizeSMedical expenses terrify many people. Simple surgeries which may help a person are avoided because of the dread of the cost. With deductibles ranging up to $5000 or more, this anxiety is understandable. The financial wellness of many people hangs on the ability to pay those bills. Continue reading

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It can be Done with Proper Advice

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One of the more exciting moments in a person’s career is receiving that first full-time check. Many young people who are recent college graduates have existed on allowances and stipends. Receiving wages for two weeks of work on a full-time job represents a fair amount of money. No one can blame that recent hire for spending a little extra and perhaps using a credit card. There is some danger in that first check, and a financial wellness plan can stop a new employee from going over the edge.

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Research from Fitch Ratings shows that close to 800stockfresh_368884_dollar-flow-in-black-hole_sizeS,000 bankruptcy filings occurred in the 2015 calendar year. The good news is that bankruptcy numbers are trending downward, but the bad news is the impact on American households. It is public policy to make sure that multiple bankruptcy filings are not part of a person’s future. To this end, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires credit counseling and financial management instruction. Countrywide Pre-Paid Legal Services offers such counseling and education as part of the financial wellness program. Continue reading

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It is a trap with consequencesHelp Person Wrapped in Red Tape Needs Rescue

 New college graduates are not experienced in financing debt. It should come as no surprise that they are nervous when they start seeing the bills for their student loans. Many do not have good paying jobs, and they worry about being able to make ends meet. Desperation can cause them to consider filing for bankruptcy due to their student loans. It is not the smartest idea because it can place financial wellness at risk. Continue reading

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There are Sharks in the WaterStressed

New college graduates are full of enthusiasm and willingness to work. They also enter into their first job loaded down with college loan debt. They are very idealistic and unfortunately a bit naïve. The trusting nature leads them open to any number of college debt frauds. These schemes take advantage of the young person’s ignorance about certain ways of resolving college debt. The result is any number of trusting young employees losing hundreds or maybe thousands of dollars in fees.

 

 

 

 

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Economic hard times can hit anyone like a sledgehammer. It isn’t necessarily over the use of credit cards but personal bankruptcy can be the result of losing a job, or a serious and unexpected medical emergency. To escape the demands of creditors a person may be forced to consider personal bankruptcy. That is a way to solve a financial problem but bankruptcy by itself is not an easy matter at all.

The difficulty lies in the various forms of bankruptcy. Each has its own special requirements for the person filing. Chapter 7 permits the individual to pay all or part of the outstanding debt and Chapter 13 permits a payment plan for the debt. That being said, state law has certain rules regarding wage garnishment and Delaware is no exception. The complexity of bankruptcy law is such that it is properly done with the assistance of an attorney.

It is certainly in the interests of any employer that an employee files the right type of bankruptcy if this is the only way to resolve a personal debt crisis. Wage garnishment is a hassle that every company wants to avoid. Delaware does allow for a certain degree of garnishment, and it would be to a company’s advantage that an employee facing bankruptcy files in a way that diminishes corporate involvement. Of course, a major challenge is that bankruptcy law is so complex. Voluntary legal plans can definitely help.

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