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Tampa Bankruptcy Law Blog

The Consequences of Not Paying Student Loans

In recent blog we discussed how debtors fail to manage their student loan debt, which is a very difficult thing to do without guidance and support. However this is a serious problem, especially because failure to pay of student loan debt could result in hard consequences.

Failing to pay off student loans could be more than financially crippling, one's driver's license could become suspended. 22 states, including our lovely, sunny Florida are cracking down and suspending driver's licenses of debtors who default on student loans.

40 percent of Florida adults struggle with medical debt

Whether someone is unable to work after suffering an injury or simply cannot afford to pay their medical expenses, there are many reasons why people have unmanageable medical debt. Unfortunately, for some people in Tampa and throughout Florida, medical bills can make a physical condition even more difficult to deal with. People who are going through this firsthand should explore every debt relief option and remain committed to working towards a successful outcome. After all, debt can become even more difficult to tackle over time and it is imperative to get started right away.

According to a report that was recently released, a greater number of adults in Florida are having a hard time with medical debt when compared to people in California and New York. Researchers say that 40 percent of adults in Florida reported having difficulties paying their medical bills or are paying them off gradually.

Tips to Reach Your Financial Goals Faster

We all have financial goals in life and some are harder to reach than others. Sometimes we need help achieving those goals; goals can be through advice and/or support, everyone is in a different financial situation. Here are a few tips to reaching financial goals in a timelier manner that anyone can use!

  • Set up a direct transfer of money to a savings account. Pay checks can be set up to distribute a little amount each month into a savings account and the rest goes to a checking account. Another way to do this is to have your accounts set up so that each month an allotted amount of money gets transferred from a checking account to a savings account. Every few months it would be ideal to increase the amount transferred into savings.

Retailer turns to Chapter 7 bankruptcy

For most businesses, making the decision to file for bankruptcy can be difficult. However, it is very important for businesses of all sizes to address their financial challenges properly and try to move forward. In Tampa, Florida, and across the country, businesses that are struggling with debt should explore every option on the table and do everything they can to work towards a fresh financial start. For some, this may include filing for Chapter 7.

An appliance retailer based in Tennessee recently filed for bankruptcy before shutting down without forewarning and leaving customers hanging. At this point in time, a total of 16 customers claim that they have not received appliances that they purchased and 86 people are looking for restitution.

Common Ways Borrowers Fail to Manage Student Loan Debt

Student loans are never an easy debt to carry. Thousands of Americans all over the nation struggle with student loan debt. Some reasons for these struggles are a few common problems borrowers face when dealing with student loans. Here are some tips on how to handle them:

1. Borrowers are not aware of student loan repayment options. Yet, there are many ways to repay student loans, especially if they are federal loans; each borrower should use a program that works best for their specific situation. Doing research on whether to use Income Based Repayment, Pay-As-You-Earn (PAYE), or getting student loan forgiveness through public service, can be helpful in gaging how to pay back student loans. However, contacting a professional in student loan debt is a good idea if you still cannot seem to get your debt under control.

2. Services might be hard to communicate a repayment agreement with. When borrowers send in extra payments for their student loans to their loan servicer they expect that extra money to pay off student loans, but because of lack of communication the servicer just puts that toward future payments without the borrower's knowledge. If you want your payments to be concentrated on paying back a certain loan, send a letter with the payment explain exactly to the servicer where you want your money to go. Keep track of all payments and close communication with loan servicers to make sure your payments are going toward what you need to pay off.

Credit cards no longer the largest type of debt in America

Whether someone loses their job or faces financial challenges (such as medical expenses) that they never saw coming, there are many reasons why people find themselves in debt. Unfortunately, far too many people in Tampa and throughout Florida who are in this situation take on a great deal of credit card debt, which can lead to a number of problems including creditor harassment. There are a number of ways that people who are going through this may be able to address their debt, such as filing for bankruptcy. However, it is important for anyone dealing with this firsthand to take a close look at all of their options and identify the smartest path forward.

More than 43 million Americans are struggling with student loan debt, which has surpassed credit card debt to become the largest type of debt in the United States. Furthermore, over one quarter of borrowers have defaulted on their student loans or are delinquent.

5-Years Past on a Foreclosure? Homeowners Might get to Keep Homes

A recent report by the New York Times states that thousands of Americans who have not been paying mortgage on their homes for years and still remain in those homes, just might be able to get away with not paying anything for their home again. This is all thanks to statues of limitations on the foreclosure process.

Offering solutions to those considering bankruptcy

Whether someone wants to stop wage garnishment or simply eliminate overwhelming debt that has been causing them to lose sleep at night, there are all sorts of reasons why people choose to file for bankruptcy. However, for people in Tampa and throughout Florida who are struggling with debt, it is crucial to review every debt relief option that is available and ensure that the ideal approach is taken. At the Tampa Bay law firm of Timothy J. Sierra, we work hard to ensure that our clients identify the best path forward and take the right steps towards a fresh financial start.

For many people, filing for Chapter 7 bankruptcy is an optimal way to address financial challenges. Chapter 7 includes liquidation (as opposed to Chapter 13, which includes repayment plans), but those filing for Chapter 7 will be able to retain exempt property. Chapter 7 also gets rid of all unsecured debt and people are protected from creditor harassment after filing their bankruptcy petition.

Interesting Ways to get Student Loans Forgiven

Student loans for anyone are a pain. Thousands of Americans are struggling with student loan debt and sometimes find themselves in over their head. However, even though many are unaware of this, there are several ways to get student loans forgiven.

One way is that if you are a doctor of a nurse you can get a large amount of your student loans dismissed in exchange for your services as a health care professional. For example the Health Professionals Loan Repayment Program helps those you are health care professionals serving in the military repay up to $50,000 in student loans per year of their service.

Taking a look at Chapter 13 bankruptcy

The United States Courts provides excellent information regarding Chapter 13 bankruptcy on their website, such as the perks that come with filing Chapter 13 and an overview of the process. For some people in Tampa and throughout Florida, Chapter 13 bankruptcy is the best way to reduce debt and finally find a fresh financial start. However, it is very important for anyone who is thinking about filing for Chapter 13 or moving forward with any other debt relief strategy to closely analyze their situation and identify the proper course of action before getting started.

There are many reasons why people turn to Chapter 13 bankruptcy. Some people may want to reduce interest rates on a loan they took out, while others want to stop foreclosure. Regardless of the reasons why people file for Chapter 13, it is imperative for debtors who have had their bankruptcy plan approved by the court to ensure that they do everything in their ability to make the plan succeed, including making arranged payments.

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Timothy J. Sierra, Attorney at Law
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Tampa, FL 33606

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