Category Archives: Bankruptcy
Credit Card Debt, Student Debt Keeping Younger Generations From Building Wealth
Even though the average wealth of U.S. consumers is on the rise, younger generations of Americans are actually becoming less wealthy. How is that possible? While incomes are finally starting to pick up, workers are saving less – particularly younger workers. According to the New York Times, a recent study found that people under 40… Read More »
Fewer Consumers in Debt, But Those Who Are Have Fallen Deeper in Debt
The good news is that fewer Americans are in debt. The bad news? Those of us with debts owe more than ever. According to new Census Bureau data, the percentage of U.S. households with debt fell to 69 percent in 2011 from 74 percent in 2000. However, households that did carry debt owed 40 percent… Read More »
Forgiven But Not Forgotten: IRS Considers Forgiven Debt As Taxable Income
There are many reasons why bankruptcy may be a better solution to overwhelming debts than debt settlement. And here’s another one: tax savings. Millions of Americans unable to pay credit card debt and other large debts turn to debt settlement each year. But while creditors may agree to discount your debt, that doesn’t mean you’ve… Read More »
New Credit Score System Could Improve Credit for Struggling Consumers
Traditional credit scoring methods such as FICO have long confused consumers. On the one hand, carrying too much debt will hurt your score – even if you can manage to pay it off. On the other hand, not having enough debt also leads to a low score. Now a new credit score system could make… Read More »
Despite Common Belief, Many Debt Plagued Homeowners Can File for Chapter 7 Bankruptcy
For thousands of deeply indebted Americans, Chapter 7 bankruptcy has been a saving grace. But thousands more consumers are missing out on the opportunity for a fresh start because they mistakenly believe they can’t file for Chapter 7 due to their status as homeowners. It’s a common myth that homeowners must file Chapter 13 bankruptcy… Read More »