Monthly Archives: January 2024
What is the Average Consumer Debt Per Person?
Since 2020, the average consumer debt per household has increased to over $100,000. Even a slight increase tremendously impacts families who live hand to mouth. Even more troubling, in 2021, prices increased faster than wages. When that happens, something’s gotta give. That “something” is usually credit card payments and, in many cases, home mortgage… Read More »
Bankruptcy and Past-Due State Taxes
Mostly because of its recent and well-chronicled budget problems, the Prairie State has one of the highest state income tax burdens in the country. Most of that burden falls on self-employed people. When their incomes drop, they often suspend estimated tax payments. That suspension comes back to haunt them in the spring, when they… Read More »
Is It Better to File Chapter 7 or 13?
The answer to this question normally depends on the type of debt. If you have an issue with unsecured debt, it’s better to file Chapter 7. Many people are in this boat. The average credit card holder owes about $4,000. If you have an issue with secured debt, it’s better to file Chapter 13…. Read More »
Special Issues in an Over-55 Chapter 7 Bankruptcy
The overall consumer bankruptcy filing rate has declined significantly since 2005, when the law changed dramatically. But the over-55 bankruptcy filing rate has increased over 60 percent over roughly that same period. The combination of several recessions, or mini-recessions, a shrinking social safety net, and a few other factors have prompted many people in… Read More »
Is It Hard to Get Chapter 7?
We wouldn’t say it’s “hard,” but we would say it’s “harder” now than it was twenty years ago. In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). Creditor lobbyists convinced many lawmakers that Chapter 7 filing abuse was serious and widespread. The evidence clearly shows that circumstances beyond the debtor’s… Read More »
