Despite the fact that more people in Virginia and around the country have access to medical insurance since the passage of the Affordable Care Act, financial issues because of medical debt are a problem for a lot of them. Some patients turn to crowdfunding sites, including GoFundMe, Red Basket, PlumFund, GiveForward and FundRazr, to help with their medical bills. A study demonstrates that these types of campaigns may not completely ease the pain of high debt levels.
Many people in Virginia are vulnerable to financial hardships after a job loss or medical crisis. Although mounting debts and missed payments could cause paralyzing stress, options for taking control and relieving financial pressure exist. By taking a proactive approach with creditors, one could properly manage debt.
Residents in Virginia who have substantial debts and are considering undergoing bankruptcy to resolve them should be aware that it is a legal process that should not be abused. This was demonstrated in a December 9, 2016, ruling in which a bankruptcy court ordered that a Chapter 13 debtor would not be able to have her debts dismissed if she decided to petition for another bankruptcy in the future.
When Virginia residents find themselves in significant debt, bankruptcy is often a consideration. Depending on the debtor's circumstances, either Chapter 7 or Chapter 13 bankruptcy may be selected. In Chapter 7, the debtor's non-exempt assets are liquidated, creditors are paid out of the proceeds, and much of the remaining unsecured debt is discharged. In Chapter 13, the debtor makes payments under a long-term court-approved plan, with most of the balance being discharged at completion.
When Virginia debtors file petitions for Chapter 13 bankruptcy, it is important for them to understand that they must get permission to engage in any financial transactions from the U.S. bankruptcy trustee. They must also report all additional income that they receive to the trustee for inclusion in their bankruptcy estate.
People in Virginia who have a large amount of credit card debt might be thinking about seeking guidance from a debt negotiation firm. These firms can negotiate with credit card companies on the consumer's behalf and help them reduce or eliminate their debt over a period of 24 to 48 months. However, there are many misconceptions about what else these services can and cannot do.
When Virginia couples divorce, their finances often suffer. This is because they have had to divide their assets, pay off debts and establish separate households. In some cases, it may become necessary for one of the parties to seek relief from overwhelming debt through bankruptcy.
Virginia residents who have pawned their vehicles and who then file for Chapter 13 bankruptcy may wonder whether the vehicle will still be considered part of their estate. According to a decision made in a Georgia district court, if the vehicle is still in the 30-day grace period, it is counted as part of the bankruptcy estate. However, this may differ from one jurisdiction to another.
Although basic living expenses nowadays can be costly, there are ways to cut back and save money. Virginia residents who are struggling to get out of debt and avoid bankruptcy might wonder what is available for them.
A zombie debt is one that is relatively old and may have been sold to third-party debt collectors. As the new owner of the debt can profit from even partial collection of a balance owed, it may contact the debtor in an effort to do so. In some cases, this debt may have been discharged in bankruptcy or already settled by the debtor.