Bankruptcy exists for the purpose of helping those people who truly need debt relief. Understanding when bankruptcy is the best option involves a careful look at the individual's financial circumstances and alternate options.
The past economic downturn affected many people. It caused them to be laid off, foreclose on their homes and file for Chapter 13 bankruptcy. As a result of the great financial stress that was felt nationwide, banks hired thousands of new employees to assist in processing loan modification requests and handle the influx of individuals who wanted to sign up for the excessively low interest rates.
Most individuals who are struggling with debt are eager to find a solution to their rising bills. A number of debt relief scams in Tampa prey on the anxieties of those who want a clean start, and make appealing promises that are impossible to keep. As a result, the victims of these scams often end up paying out resources that put them even deeper in the hole, only to find out that their debts were never settled to begin with.
It's hard enough for many Floridians without the added stress of identity theft. Unfortunately, this type of crime is growing alarmingly fast, and it's negatively affecting people's credit all over the country. This can have serious consequences, from having credit card applications denied to being unable to get a car or mortgage loan. Victims of identity theft often have their credit ruined through no fault of their own, and in many cases they have no idea it's happened to them.
Medical costs can add up alarmingly fast, often for only one medical emergency, and health insurance plans don't always cover costs. Medical bills are a major cause for bankruptcy for many Americans. A financial advisor has offered a few tips that may help Floridians to stay out of deep medical debt:
It's tax time, and for a large number of Americans that means a nice refund check. The average tax refund check is around $3,000. Rather than frivolously spending this money, many Floridians are making wise choices with their refunds that can help them avoid future financial challenges. Here are a few options to make your tax refund count:
A major problem that's causing a rising amount of financial challenges and other issues with American consumers is credit card debt. However, for many large purchases, it's important to have a good line of credit. Few people can afford to pay cash for a house or a car, and it's nearly impossible to walk into a car dealership or mortgage lender's office and get a loan with zero or poor credit. Building good credit is also essential for new business owners.
After suffering for years during the recession and housing crisis, there may finally be a way for homeowners facing foreclosure to get some much-needed -- and long-awaited -- help for their underwater homes. Florida is one of the states suffering the worst of the national housing market crash, and mortgage giants Fannie Mae and Freddie Mac are now offering some solutions to help many of the millions of struggling homeowners in the U.S.
Life has always been a challenge for recent college graduates. The hunt for a job and the struggle to start a decent life in the "real world" can be difficult even in the best of times. Unfortunately, Fair Isaac Corp., better known as FICO, says the problem with graduates' personal debt from student loans is worsening. Delinquent student loan payments have risen to 15 percent over the past two years -- up from 12.4 percent from 2005 to 2007.
Florida has the nation's highest foreclosure rate. A proposed bill, if passed, would speed the backlog of pending foreclosures through the process a bit faster. The controversial bill originally made it to the Florida House last year, when struggling homeowners attempting to stop foreclosure protested against it. The revised bill is a more moderate version that may speed up some home repossessions from sitting in limbo for two or more years, the current average for foreclosures in Florida.