Monthly Archives: October 2023
What are the Most Common Reasons for Bankruptcies?
In simple terms, people file bankruptcy because they owe more than they can pay. Average credit card numbers are especially grim. The average household has over $7,000 in credit card debt. At an average interest rate of over 22 percent, it’s very difficult to pay off this debt simply by making double, or even… Read More »
FAQs About Non-Bankruptcy Debt Negotiation
Lots of people have lots of questions about non-bankruptcy debt negotiation. The poor economic conditions of the early 2020s were especially hard on families in the Prairie State. So, most people know they need to do something to get off the revolving debt treadmill. However, to many individuals, that “something” isn’t bankruptcy, which many… Read More »
Does Bankruptcy Affect Social Security Payments?
Technically, no. Social Security benefits and other retirement accounts, like IRAs and 401(k)s, are exempt assets in bankruptcy. The Bankruptcy Code usually doesn’t protect cash in checking accounts or other DDAs (demand deposit accounts). It also usually doesn’t protect short-term savings accounts. Retirement accounts are different. Usually, people sacrifice and save for decades to… Read More »
Will I Lose My Security Clearance if I File Chapter 13 Bankruptcy?
No. And, in fact, according to Guideline F in DoD Directive 5220.06, which is the authoritative document in this area, filing bankruptcy might be the only way to save a security clearance. Chapter 13 affects a debtor’s life in many ways. This filing usually triggers five years of court supervision. Furthermore, filing bankruptcy lowers… Read More »
How Does Bankruptcy Stop Vehicle Repossession?
The repossession threat is real. Legally, banks or other lenders can begin the repossession process after only one missed payment. Usually, these companies electronically disable vehicle ignition even earlier than that. There’s more bad news. Since pandemic lockdowns ended, a combination of high gas prices, job cuts, high vehicle prices, and overall high inflation… Read More »
