Chapter 13 filers in Virginia should know that getting a home during or after bankruptcy is not impossible. While it can be challenging, renting or purchasing a home can be a reality for many filers.
Many people in Virginia who are struggling with medical debt should not expect too much from two recent reforms. Starting Sept. 15, credit bureaus will be required to wait 180 days before reporting medical debt on a person's credit report. Furthermore, if a bill goes into collections and is paid by an insurer, it will be deleted from the credit report.
Virginia consumers who are considering bankruptcy may wonder what it will cost them. Even if a person does not use an attorney, there are filing fees. These fees vary depending on what kind of bankruptcy is being filed.
Virginia residents with credit card debt may be looking for the best way to deal with these obligations. While debt settlement is one option, it is important that people consider all the facts before choosing that alternative. Debt settlement can have a negative effect on the credit score and financial future of the consumer, and not all consumers who use this option are aware of this fact until they have already contracted for these types of services.
American consumers now have a total debt balance of $12.84 trillion according to a report published by the Federal Reserve of New York. The report covered the second quarter of 2017, and it represented a $552 billion increase from this time last year. Higher levels of mortgage, auto and credit card debt were cited as factors for the overall increase. It was noted that there was a jump in credit card delinquency rates.
Virginia residents who have substantial debt and a steady stream of income may consider using Chapter 13 bankruptcy to resolve their obligations. However, there are many things they should consider before entering bankruptcy, which can last for years.
A report released on Aug. 7 by the Federal Reserve reveals that the U.S. economy grew by 2.6 percent during the second quarter, but some experts are worried about the amount of revolving debt being carried by consumers in Virginia and the rest of the country. Consumer activity accounts for about 70 percent of the nation's economic output, and the data suggests that much of this spending is being done using high-interest credit cards.
In 2016, over 770,000 people in Virginia and throughout the country filed for Chapter 7 and 13 bankruptcy. In a Chapter 7 bankruptcy, nonexempt assets are sold with the proceeds going towards paying off creditors. While unsecured debts can be eliminated, it may not be possible to discharge secured debts or student loan balances. Those who file for Chapter 13 bankruptcy reorganize and repay their bills over a period of up to five years.
Consumers in Virginia and across the United States can't be prevented from joining class action lawsuits against their banks or credit card companies by arbitration clauses. A rule issued by the Consumer Financial Protection Bureau is designed to stop companies from preventing consumers from taking legal action about issues that affect a large number of people.
In Virginia bankruptcy cases and elsewhere, secured creditors are not required to file proofs of claim as unsecured creditors are. Nonetheless, a recent case set a precedent that if they do file a proof of claim to receive payments out of a Chapter 13 bankruptcy case, secured creditors must file it on time.