Category Archives: Bankruptcy
As Student Debt Bubble Grows, Lawmakers May Have to Rethink Requirements for Discharging School Loans
In many cases, consumers with overwhelming debts are surprised at just how quickly bankruptcy can help them get back on their financial feet. But in recent years, there’s been one form of debt that bankruptcy can’t readily relieve: student loans. Current bankruptcy laws require what’s known as an “undue hardship” to discharge student debt. Debtors… Read More »
Younger Borrowers Make Up Majority of Underwater Homeowners
This spring’s rising home values helped some homeowners emerge from their underwater mortgages. Unfortunately, they didn’t do much good for younger borrowers. While significantly fewer people now owe more on their mortgages than their homes are worth, a disproportionately large percentage of homeowners who are still underwater are under the age of 40, according to… Read More »
Bankruptcy May Help Consumers Caught in Cycle of High-Interest Payday Loans
Payday loans are supposed to be a last-resort method for covering sudden, unexpected expenses. But as NBC News reports, a growing number of people are relying on these expensive short-term loans for routine costs like house payments, rent, groceries, and utility bills. Recent data shows that 12 million people used payday loans in 2010, and… Read More »
Rising Bank Fees Put Strain on Consumers Saddled with Credit Card Debt, Other Obligations
Banks are supposed to protect our money. But these days, they seem to be nickel and diming us out of every cent. According to a recent survey, the nation’s biggest banking institutions are piling on new fees – and increasing the minimum balances customers must maintain to avoid those fees. For instance, the average monthly… Read More »
Despite Recent Drop, Foreclosures Expected to Rise Again Before the Market Improves
For homeowners at risk of foreclosure, watching the real estate market can feel like a roller coaster ride of ups and downs. In July, foreclosure filings fell 3 percent from the previous month and a whole 10 percent from a year ago, according to RealtyTrac data. That’s the good news. The bad news is that… Read More »