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Chapter 13 Archives

Downsides of credit card debt

Many Americans accumulate credit card debt at some point during their lives. The average amount of credit card debt in U.S. households is $5,700. This may not seem like a huge amount, but it can have long-term consequences that Virginia cardholders may need to be aware of.

Bankruptcy ruling leads to confusion

Virginians who are considering filing for Chapter 13 bankruptcy might want to be aware of a recent Supreme Court decision that concerned the ability of debt collectors to file stale claims. The Supreme Court's ruling has confused attorneys around the country and may lead to additional litigation in the future.

The impact of discharged bankruptcies on credit ratings

Virginia residents sometimes struggle with overwhelming debts for years on end because they are convinced that filing for bankruptcy is ruinous to credit ratings and makes future borrowing extremely difficult, but data shows that this is rarely true. While bankruptcies remain visible to lenders for as long as 10 years, they are not usually a significant handicap to obtaining credit. There are also financial options, like secured credit cards, that are designed for consumers who are either establishing or rebuilding their credit profiles.

Trustee not permitted to alter payments

Virginia homeowners who are in arrears and who are considering filing for bankruptcy may be interested in the outcome of a bankruptcy case in Texas. A judge from the United States Bankruptcy Court for the Southern District of Texas ruled that a trustee had no authority to retroactively adjust Chapter 13 payments.

New debt collection methods

Virginia residents might like to know about creative methods being used by debt collectors to attempt to get more payments. Some techniques, like ringless voice mails, appear to skirt rules. Regulations limit how often collectors can call, but this software allows collection agencies to put voice mails into phones by sending messages to phone company servers.

Important consumer rights regarding creditor harassment

Virginia consumers who are struggling to make credit card payments might discover that their issuer has sold their debt to another company. For example, earlier in 2017, Credit Shop, Inc. purchased $1.6 billion in Barclaycard account balances. Often these purchases include subprime accounts and those that have become delinquent. To earn income from the acquired debts, credit companies start pressuring customers to make payments.

Credit reports and Chapter 13 payments

When Virginia residents seek relief from overwhelming debt, bankruptcy is often an option. In situations where the individual or couple filing for bankruptcy has a steady income as well as property that they would rather not lose, Chapter 13 bankruptcy may make sense. In this type of bankruptcy, the debtor enters into a court-approved repayment plan for a period of three to five years. Once the plan is completed, any unpaid debt is discharged.

Common misconceptions about filing for bankruptcy in Virginia

When someone has more debt than they can pay off, filing for bankruptcy may be the best answer. Unfortunately, many people may put off filing because they are afraid that they will lose all of their belongings or never be able to build back their credit. While there are some potential downsides to filing for bankruptcy, the reality is that there are also a lot of misconceptions about this debt relief option.

Judge decides retirement funding during bankruptcy excessive

People in Virginia who are considering a bankruptcy will likely need to limit how much they set aside to fund retirement plans during the course of the bankruptcy. A judge in one bankruptcy court rejected a Chapter 13 payment proposal from a married couple because about 18 percent of the couple's income would be directed to a retirement account.

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