Category Archives: Debt
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 »
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 »
How Much Can You Usually Settle a Debt For?
It’s very difficult to say, since these matters are so fact specific. Generally, debt negotiation reduces a UPB (unpaid principal balance) between 10 and 50 percent. Clear evidence of lender fault, like lender fraud, generally means a large reduction. Mere inability to pay generally means a smaller reduction. The bankruptcy bluff, which is outlined… Read More »
Non-Bankruptcy Debt Negotiation
As a general rule, if you spend more than a third of your monthly income on debt retirement, that debt is impossible to pay off. Note we said “debt retirement” and “debt servicing.” Paying monthly minimums on credit cards and other revolving debt accounts doesn’t affect the UPB (unpaid principal balance). These families will… Read More »
What Are Some Dischargeable Debts in an Illinois Bankruptcy?
The average consumer has a debt load exceeding $125,000. Much of that debt is unsecured debt, such as credit cards and medical bills. As a rule of thumb, if a family’s debt-to-income ratio is lower than 45 percent, it’s possible to timely retire any debt. If the DTI is higher than that, payoff is… Read More »
Bankruptcy and Past Due Taxes
The IRS audit rate has declined significantly in recent years. But do not let that fact lull you into a false sense of security. The IRS is still the world’s largest collection agency, and it has legal tools which other debt-buyers dream about. So, if you owe back taxes, the government will come after… Read More »
Putting Consumer Bankruptcy in Your Rearview Mirror
The Bankruptcy Code gives distressed debtors a fresh financial start. Truth be told, some people squander their second chances. They repeat the same mistakes, so they are back in dire straits shortly after their existing debts are discharged. Other people move on to success. Henry Ford is a lingering example. His first automobile manufacturing… Read More »