Florida residents who are struggling with their financial obligations may benefit from filing for bankruptcy. However, it is a decision that shouldn't be made lightly. It is important to know that it can stay on a credit report for up to 10 years. This may make it more difficult to get a job or obtain housing. It may also make it harder to get the best rates on an insurance policy.
Florida residents who are thinking about ways to regain control of their finances may want to consider debt consolidation. Depending on how the debt is consolidated, it may act to reduce interest paid on a balance without ruining a person's credit. For instance, taking out a new loan to pay off current debt may actually improve a credit score in the long run. This is because the new loan may reduce the amount of credit a person is using.
Florida residents may be able to deduct contributions to a 401k plan even if they hadn't contributed in the six months before filing for bankruptcy. That is what a judge in Illinois ruled in Oct. 2017. As long as there was no intent to show bad faith, the retirement contributions can be counted as an expense when calculating disposable income.
In September 2017, consumer credit rose by $20.8 billion, which would be a rise of 6.6 percent annualized. Specifically, revolving credit rose $6.4 billion while other types of debts rose $14.4 billion. The growth in non-revolving credit was attributed in part to increased level of auto purchases after massive hurricanes hit Florida and Texas. In the third quarter, auto loans rose by $19.3 billion.
Many people living in Florida have to deal with bill collectors. In some cases, the collectors try to collect a legitimate debt in an ethical manner. In other cases, however, the person being contacted has already paid or never owed the debt in the first place. In these situations, the collection efforts are often the result of bookkeeping errors or mistaken identity. However, creditor harassment sometimes persists.
Those who pay off their credit cards just to max them out again are referred to as yo-yo debtors. While anyone in Florida can be guilty of this habit, it may be more common among younger people who may not necessarily understand how credit cards work. In some cases, this may be a result of spending money without thinking about the impact.
Many people in Florida and around the country struggle with their bills. While they do their best to get caught up, they are not always able to do so. These individuals often experience a great deal of stress, creditor harassment and, in some cases, may even be taken to court by creditors.
People in Florida may be interested to learn that bankruptcy filings in September were down, and this marked a 10-year low for filings over a period of 12 months. However, the economic news is not all positive. There was an increase in Chapter 12 filings, which is a type of bankruptcy for family farms and fisheries, and some experts predict that if interest rates increase, bankruptcy filings might as well. Furthermore, there was only a small decline compared to 2016, and this suggests that the overall drop in bankruptcies might be slowing down.
When individuals and couples living in Florida realize that their debt has become unmanageable, they often seek relief in consumer bankruptcy. In bankruptcy, debtors can stop creditor harassment and either seek a complete discharge of debts in a Chapter 7 bankruptcy or enter into a manageable payment plan in Chapter 13.
Florida residents and others may have a lower credit score than they deserve. This could be because of inaccurate information on a credit report. Anyone who sees erroneous information on their report should take steps immediately to rectify the issue. Even if an error doesn't impact a person's credit score, it could still make it harder to get the best rates on insurance and other products.