Right now, there are limits on how often creditors can contact you to demand payment -- and by what methods. Legitimate debt collection companies know they have to abide by these limits and that there are stiff penalties for crossing them. They can even be sued by the debtors they're trying to collect from if they go too far over the line.
Struggling financially not only affects your wallet, but it can have consequences for your mental health. Spending all of your emotional energy worrying about money can mean that you will be less emotionally available for your partner and children, or other loved ones.
Reclaiming your financial security is one of the most common reasons why people opt to file for bankruptcy. There are other benefits that occur when you file. One of these is the automatic stay. Many people who file bankruptcy find this order to be one of the most pleasant things that happens when their case is started.
Many people look forward to receiving an income tax refund because of the financial boost. If you are planning on filing for bankruptcy, you can use this extra money to augment your financial situation before the filing. Make sure you don't file for bankruptcy until you have your tax refund in your hand since the trustee will get the refund you file before you have it.
Some people who need to seek bankruptcy protection will file for Chapter 7. This is known as liquidation bankruptcy because your nonexempt assets will be handed over to the bankruptcy trustee and liquidated with the proceeds going to pay your creditors. If there are balances left on any of your accounts after this, those will be forgiven when the case is discharged.
When you file for bankruptcy, you have to think carefully about how it will impact your finances. For many people, filing for bankruptcy helps immensely because it does away with a lot of the debts that are crushing them. Sometimes, the best thing that you can do is wipe the slate clean and turn over a new financial leaf.
Filing for bankruptcy isn't ever an easy decision to make. It is imperative that you have all the information you need to make the decision that is in your best interests. Many things can impact this, so be sure that you get answers to your questions as soon in the process as possible.
Individuals who are in debt will sometimes look forward to tax season because they know they will receive refunds when they file. Unscrupulous debt collectors might claim that they are going to have your federal return intercepted or garnished. This isn't possible in most cases because the Internal Revenue Service doesn't seize tax refunds to settle private debts.
Every tax season, millions of Americans rely on their tax returns to help them catch up on bills and find a little extra for special purchases.
A recent study indicates there is one type of debt that might loom particularly large for older millennials. It may surprise you to hear that it is not student loan debt. Rather, it is credit card debt.