As people in Massachusetts and throughout the country get older, their healthcare expenses generally increase. One way to cover some of these expenses is to apply for Medicare. Individuals are eligible to enroll starting three months prior to turning 65 and for another four months after turning 65. Those who work for a company that has more than 20 employees can enroll for Medicare Part B and Part D after retirement without penalty.
Massachusetts residents who are struggling with overwhelming debt often put off filing for bankruptcy because they worry that a Chapter 7 or Chapter 13 petition will ruin their credit and make future borrowing difficult or impossible. However, a report recently released by the online financial exchange Lending Tree suggests that these fears may be exaggerated. Researchers discovered that 43 percent of Americans who file a bankruptcy have credit scores of 640 or higher just a year later, and this figure rises to 65 percent after three years.
The weight of overwhelming debt is a heavy burden for many people across Massachusetts. Bankruptcy may offer a way out, but many are concerned about the stigma and financial consequences that come with a bankruptcy filing. Despite that, bankruptcy is the best option for many.
Many people in Massachusetts may be struggling with overwhelming debt and looking for relief from their situation. However, concerns over the effects of personal bankruptcy on one's creditworthiness in the future may hold people back from taking the next step, despite the debt relief potential offered by a bankruptcy filing. There are ways that people going through bankruptcy can plan ahead to help ensure the success of their filing.
The rate at which Massachusetts residents and others are filing for bankruptcy is dropping. However, there were still 772,594 bankruptcy filings during a 12-month period that ended in June 2017. One of the main reasons why people file for bankruptcy is because they lost their job. Typically, an individual didn't have enough money to cover his or her mortgage, car payment and other expenses. Ideally, a person will have an emergency fund that can last for up to 12 months.
People who file for personal bankruptcy typically do so because they cannot pay their bills with their current earnings and assets. However, many people who seek relief from the Massachusetts bankruptcy courts have some money saved for retirement. Bankruptcy laws protect some retirement accounts from being liquidated, but there are circumstances that could cause a person to lose all or some of their invested savings.
An increasing number of people in Massachusetts are falling behind on their credit cards. This is concerning for banks because it may indicate that more delinquencies may also occur with other types of loans.
Some Massachusetts consumers may be interested in debt consolidation as a solution to financial problems. While this can be helpful, if the person's underlying problem is overspending, debt consolidation might not be the answer.
Debt collection companies in Massachusetts and around the country are forbidden from using deceptive or abusive tactics to collect money by the Fair Debt Collection Practices Act. The federal law applies to companies that collect unpaid bills on behalf of others, but the debt collection industry has changed greatly since its passage in 1977. Companies today often buy tranches of delinquent debts for pennies on the dollar, and consumer rights groups have called for the provisions of the FDCPA to be applied to these businesses also.
When individuals in Massachusetts are facing financial problems, they will likely want to resolve these issues as fast as possible. The problem is that oftentimes there is no quick fix when it comes to problems with debt. There are, however, mechanisms to help debtors enter a path for debt relief. And, when individuals finally decide to file for personal bankruptcy, it is important to keep a few factors in mind along the way.