One of the biggest challenges consumers face today is mounting debt. From credit cards to student loans to underwater mortgages, debts can stack up to the point where they become overwhelming. Some of these debts can be managed; we can learn to curb our spending via credit cards for example or refinance a mortgage under the HARP program. There are certain debts however that we can have little control over and those include medical debt. After all, few would argue that nothing is more important that our health, or the health of our loved ones.
For some people, filing a personal bankruptcy can provide the opportunity for them to reset their finances and give them hope for the future. It can provide a new chapter free from the debts that many times accrue through no fault of the debtor. A bankrptcy doesn’t mean a person is irresponsible; many times, unintended debts can pile up leaving few options. Medical emergencies, natural disasters with not enough insurance, and unforeseen home or car repairs are just a few of the ways unintended debts can pile up.
Bankruptcy is something that attorneys see a lot of in the State of Florida – for example, (as reported by state courts), there were a total of almost 24,000 bankruptcy cases adjudicated at of the end of December last year in United States Bankruptcy Court for the Middle District of Florida; the third busiest bankruptcy court, of the 90 federal districts, in the nation. There are options for Florida bankruptcy.
According to statistics, the average FICO credit score is currently 695, an all-time high in the United States. Although there are different scoring models, resulting in the fluctuation of this figure by a few points, the majority fall between 660 and 720. Roughly 14% of the population does not have any credit score – this is what is labeled as “credit invisible”. Because of this, these people will have problems obtaining new lines of credit. For lenders, a credit score can determine how much of a risk a potential barrower might be. Beyond simply approving someone for a loan, a credit score can determine how big a line of credit a person can get, and most importantly, how high the interest rate will be.
A Chapter 13 bankruptcy is, to put it simply, a type of court-supervised payment plan. When you enter into this agreement, you will pay your unsecured and secured creditors each month, based on your income and any reasonable expenses. It is a court ordered reorganization plan that needs not only the approval of the courts but of creditors as well.