Texas residents who file a Chapter 13 bankruptcy sometimes wonder what would happen if they run into financial difficulties and are unable to make one of their required monthly payments on time. These payments are generally sent to a designated bankruptcy trustee who then passes the money along to the debtor's creditors, and, in these situations, payments that arrive a few days late will rarely cause many problems. However, it may be wise for debtors to find out when the bankruptcy trustee sends these payments out each month.
The third quarter report by the Federal Reserve Bank of New York we discussed in our last blog post shows that student loan debt increased nearly 4.6 percent between quarter two and quarter three. This is a substantial amount, given that if it continues, that could mean a yearly increase of 20 percent.
Data from the Federal Reserve Bank shows some promising figures regarding American debt: Household debt fell $74 billion in the third quarter of 2012 and mortgage debt fell $120 billion. In fact, mortgage debt is at its lowest level since 2006 and foreclosure numbers continue to drop.
According to new information recently disclosed by Freddie Mac officials, the mortgage company intentionally made it harder for Americans to refinance high interest mortgages because of its bottom line. In other words, they intentionally kept Americans locked in their high interest mortgages by creating barriers to HARP (Home Affordable Refinance Program) refinancing.
The Fair Debt Collection Practices Act (FDCPA), which is enforced by the Federal Trade Commission, details what debt collectors may or may not do when they collect debt. First and foremost, it prevents debt collectors from using unfair, deceptive or abusive practices to collect on a debt.
The following are some of the common questions clients ask about bankruptcy and credit. The answers are general information that should not be construed as legal advice.
There is a strong misconception that people who apply for bankruptcy are errant debtors who have spent beyond their means and are now looking for a quick fix. However, that misconception is far from the truth. Instead, many debtors are suffering from the shock of job loss or unexpected bills. And one of the main culprits is something that none of us can fully avoid: medical bills.
Trapped. That is how many people feel when they cannot meet their monthly payments and the debt keeps building up. The idea of filing for bankruptcy is frightening - it may feel like "giving up."
In recent years, job losses and the mounting debt that follows have made it more difficult for some people to keep current on their bills. Unfortunately, when people go into debt, they must often face phone calls and other contact from their creditors, often making a bad situation much worse.
If you are looking for debt relief options, do your research. Debt relief scams continue to push already-struggling debtors further under water. Filing for bankruptcy through an experienced Plano bankruptcy attorney may be a better option to reduce your mortgage or credit card debt.