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American consumer debt increased steadily in April as credit-card use surged. At the same time, education and vehicle debt grew at the slowest pace since July 2012. While economists typically see a pickup in consumer debt as a strong indicator of consumer confidence; however, the growth could also be a sign that money is scarce for many households and that consumer debt is the only option left on the table.
It seems like the latter explanation is a little more plausible. After all, if consumer confidence were really on the rise, why would car loans be declining. Our suspicion is that for most Oregonians, economic instability is what is really causing the spike in consumer debt. In any event, watching a ramp up in consumer debt accompanied by the near loan shark interest rates that the banks are now permitted to legally charge without any trace of shame, all I can say is that isn’t our first time at the rodeo. We know how this turns out.
The original post is titled Increase in Consumer Debt , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
The bankruptcy code requires a chapter 13 debtor to file a chapter 13 plan. The chapter 13 debtor has the exclusive right to file a plan as chapter 13 is a voluntary proceeding. If the debtor fails to file a plan, the case may be dismissed or converted to chapter 7.
Chapter 13 plans generally are designed to adjust payment of debts under a flexible repayment plan. Usually these payments are made from future wages or income. There are some mandatory provisions for a chapter 13 plan, but most are permissive.
A chapter 13 plan is usually three to five years in length. Not all secured creditors - such as an up-to-date car loan - are required to be paid as part of the chapter 13 plan. Priority claims, such as child support and alimony arrearages, may be paid through the plan. Defaults in mortgage payments may be cured in a chapter 13 plan.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
The bankruptcy code requires a chapter 13 debtor to file a chapter 13 plan. The chapter 13 debtor has the exclusive right to file a plan as chapter 13 is a voluntary proceeding. If the debtor fails to file a plan, the case may be dismissed or converted to chapter 7.
Chapter 13 plans generally are designed to adjust payment of debts under a flexible repayment plan. Usually these payments are made from future wages or income. There are some mandatory provisions for a chapter 13 plan, but most are permissive.
A chapter 13 plan is usually three to five years in length. Not all secured creditors - such as an up-to-date car loan - are required to be paid as part of the chapter 13 plan. Priority claims, such as child support and alimony arrearages, may be paid through the plan. Defaults in mortgage payments may be cured in a chapter 13 plan.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
The bankruptcy code requires that an individual seeking to file for bankruptcy relief must take a certain approve credit counseling course during the 180 days prior to the filing of the case. The course must be take from an approved nonprofit budget and credit counseling agency. The course may be taken in person, telephone, or on the internet.
The clerk of the bankruptcy courts maintain a list of the approved credit counseling agencies. The office of the U.S. Trustee approves these agencies pursuant to its criteria.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
The bankruptcy code requires that an individual seeking to file for bankruptcy relief must take a certain approve credit counseling course during the 180 days prior to the filing of the case. The course must be take from an approved nonprofit budget and credit counseling agency. The course may be taken in person, telephone, or on the internet.
The clerk of the bankruptcy courts maintain a list of the approved credit counseling agencies. The office of the U.S. Trustee approves these agencies pursuant to its criteria.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
Experts state that by early 2013, the amount of student loan debt in the United States surpassed $1 trillion and that nearly 20% of Americans households owe on student loans.
It is also reported that student loan delinquency and default are also on the rise. By 2009, about 9% of borrowers had defaulted. Student graduating from for-profit schools have a much worse default rate.
There are many negative consequences for student loan borrowers who default. The federal government contracts with several private collection agencies to collect on defaulted loans. Collection charges may be as high as 20% or higher of the payment. Also in order to collect, the government can seize wages, tax refunds, and social security payments.
Deferment and Forbearance
Borrowers with federal loans who return to school or who are in a difficult financial circumstances may be able to obtain a temporary deferment or forbearance of payments. Information is available on the Department of Education's website.
Deferment means that the borrower is excused from making payments for a period of time. Borrowers who do qualify for deferment may seek forbearance from payment or a reduction in payments for up to 12 months. Unlike with deferment, interest continues to accrue on the loan.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
Experts state that by early 2013, the amount of student loan debt in the United States surpassed $1 trillion and that nearly 20% of Americans households owe on student loans.
It is also reported that student loan delinquency and default are also on the rise. By 2009, about 9% of borrowers had defaulted. Student graduating from for-profit schools have a much worse default rate.
There are many negative consequences for student loan borrowers who default. The federal government contracts with several private collection agencies to collect on defaulted loans. Collection charges may be as high as 20% or higher of the payment. Also in order to collect, the government can seize wages, tax refunds, and social security payments.
Deferment and Forbearance
Borrowers with federal loans who return to school or who are in a difficult financial circumstances may be able to obtain a temporary deferment or forbearance of payments. Information is available on the Department of Education's website.
Deferment means that the borrower is excused from making payments for a period of time. Borrowers who do qualify for deferment may seek forbearance from payment or a reduction in payments for up to 12 months. Unlike with deferment, interest continues to accrue on the loan.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
Cancellation or rescission generally refers to a process by which a court terminates or cancels a contract or other instrument. Cancellation and rescission is distinguished from reformation, which is a generally a relief by a court to modify an agreement to express the true agreement or intentions of the parties.
The remedy of rescission is an ancient remedy provided by court of equity. The prime objective is to undo the transaction and restore the parties to their former status. The right of cancellation or rescission is not available as a matter of right, but lies within the strict discretion of the court in accordance with what is reasonable and proper under the circumstances of the particular case.
The grounds for a cancellation or rescission are often fraud, accident, or mistake. Types of fraud include fraudulent deception, concealment, or false representation. Duress and undue influence may also be the basis for cancellation or rescission. Duress may include moral compulsion, threats, or actual violence.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
Cancellation or rescission generally refers to a process by which a court terminates or cancels a contract or other instrument. Cancellation and rescission is distinguished from reformation, which is a generally a relief by a court to modify an agreement to express the true agreement or intentions of the parties.
The remedy of rescission is an ancient remedy provided by court of equity. The prime objective is to undo the transaction and restore the parties to their former status. The right of cancellation or rescission is not available as a matter of right, but lies within the strict discretion of the court in accordance with what is reasonable and proper under the circumstances of the particular case.
The grounds for a cancellation or rescission are often fraud, accident, or mistake. Types of fraud include fraudulent deception, concealment, or false representation. Duress and undue influence may also be the basis for cancellation or rescission. Duress may include moral compulsion, threats, or actual violence.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
The discharge of debt in a chapter 13 case is granted after a person completes performance under his chapter 13 plan. Chapter 13 plan are generally three to five years in length. Generally the types of debt that are dischargeable in a chapter 13 case are the same as those in a chapter 7 case, but there are certain debts that are dischargeable in a chapter 13 case that are not dischargeable in a chapter 7 case.
Hardship Discharge
A chapter 13 debtor that is unable to complete his chapter 13 plan payment for reasons beyond his control may be eligible for a "hardship discharge." In order to obtain a hardship discharge, certain requirements must be met such as to the amount paid under the plan and the circumstances of the debtor's situation. Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
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