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July 2017 Archives

Americans handling credit card debt well

According to TransUnion, residents of Massachusetts and throughout the United States have done a good job of paying down their debt. This is in spite of recent interest rate increases by the Federal Reserve. However, just because people are able to absorb higher debt payments doesn't mean that they shouldn't have a plan to pay off the principal balance. Those who pay 15.5 percent interest on a $5,000 balance would pay $2,286 interest over a period of more than 10 years.

New rule for banks, credit card companies

Massachusetts consumers may have an easier time joining with others in order to file a lawsuit against banks and credit card companies thanks to the Consumer Financial Protection Bureau. A CFPB rule issued on July 10 addresses arbitration clauses that do not allow consumers to take a case to court because the companies require alternative dispute resolution. Wells Fargo is one financial organization that tried to use arbitration to shut down lawsuits.

Judge finds no abuse of Chapter 7

Massachusetts residents who are seeking a fresh financial start by filing for Chapter 7 bankruptcy often have questions about how much of their personal assets will be protected by the courts. A Virginia bankruptcy court decision provides some insight into the inner workings of how courts treat real estate assets while offering debt relief. In this case, the appointed trustee reported that the debtor had two homes.

Creditors must file timely claims under Chapter 13

Massachusetts residents considering bankruptcy might wonder about how filing for Chapter 13 works when it comes to paying back creditors. Those who qualify for Chapter 13 can restructure debts and might be able to discharge some that remain after paying back over a three- or five-year period. Typically, priority and secured debts must be paid while some unsecured debt could be discharged after the repayment period.