While bankruptcy is designed to help people escape serious debt problems, the situation becomes interesting when it comes to credit accounts with zero balances. These are typically credit card debts, either through credit card companies or those issued by individual businesses. When filing for bankruptcy, debtors only need to include actual debts, so in theory, [...]
We have frequently mentioned the need to challenge credit card companies when they file a suit to recover the debt owed. Credit card companies rely on one factor when filing for a judgement on a debt, and that’s the habit of most debtors to ignore the matter altogether. When the suit is not defended, the [...]
The leading cause for bankruptcy in the U.S. is credit card debt. Yet filing for bankruptcy to resolve this debt is not always the best option. However, there is certainly one practice that every citizen should avoid, and that’s ignoring a court summons for a default judgement. In fact, credit card companies are relying on [...]
The term deadbeat is often used disparagingly, so when someone suggests it may be a good idea to become one, it certainly raises a few eyebrows. In the banking industry, particularly the credit card industry, a deadbeat is someone who almost always pays off their credit card debt each month. The industry doesn’t really like [...]
There is one aspect of post bankruptcy life that concerns many bankruptcy attorneys and financial counselors, and that is the approach taken by some financial companies to vulnerable people. Having just been discharged from bankruptcy, particularly Chapter 7 bankruptcies, the last thing these people need is a flood of credit card offers. Yet that is [...]
If you are filing for bankruptcy because of credit card debt, a married couple needs to act with a great deal of care. Joint credit cards do exist, however, most credit cards are issued to single account holders. That account holder then authorizes the issue of cards to others, in this case their spouse. Some [...]
Sadly, as we move from employment to retirement, we are taking with us quite sizeable credit card debts. For the senior citizen, this can represent a huge drain on their already diminished income. There are a number of options they can look at to deal with these debts. These options include: continuing to pay off [...]
Debt in the United States is concentrated in two distinct areas – mortgage debt and credit card debt. These two debt areas account for 70% of all debt – if you include vehicle finance and medical debts, then you can lift that to almost 85% with tax being the next largest debt. Credit card debt [...]
Most credit card providers try a whole range of collection options before finally going to court to sue for the unpaid balance. If you have reached this point, you either have a major issue with the credit card provider, or you have simply ignored all their requests for payment. It is generally not a good [...]
Credit cards really cop a hammering at this time of the year. There is the pre-Christmas shopping that give most credit cards a good work out. Some people are smart enough to leave plenty on their cards – but that is only because they want to give the post-Christmas sales a real hammering. Either way, [...]
There are constant reports in newspapers and online about how indebted our society is and the consequent record numbers of bankruptcies being filed. Two of the leading causes of debt are home mortgages and credit cards. Foreclosures have been in record numbers over the last two years, but what we are not hearing is the [...]
The two largest debt problems in the country at present are mortgages and credit cards. Mortgage interest rates are comparatively mild compared to those charged for credit cards, however, mortgages can be expensive to establish. There has been a trend in recent years for credit card issuers to offer six or twelve month low interest [...]
When filing a petition for bankruptcy, you must, by law, list all outstanding credit. But what about credit cards with a zero balance? It is an interesting situation because, since it has no outstanding credit, it need not be listed in your schedule of creditors. It also has ramifications that go beyond bankruptcy. There is [...]
Many lenders are breathing a sigh of relief at present. Statistics are showing that monthly credit card delinquency rates have fallen for the first time in over two years. However, the rate of revolving debt through credit cards is still high with almost 98% of all credit card debt affected. Of more concern to debt [...]
A previous post – Can You Include Credit Card Debts In Your Petition? – dealt with some of the issues relating to credit cards and bankruptcy. Today’s post looks purely at discharging a credit card as opposed to seeking a longer payment period. Totally discharging a credit card debt is generally undertaken using a Chapter [...]
When it comes to financial difficulties for individuals, credit cards are one of the biggest issues. There have been cases where individuals have filed a bankruptcy petition, listing a dozen or more credit cards together with another dozen or more store-based cards – all maxed out. Some petitioners are surprised when their application for bankruptcy [...]
