Although consumer confidence in Massachusetts could be boosted by statistics indicating low levels of bankruptcy filings in the last year, it is important to have a balanced view of the data. The Administrative Office of the United States Courts has reported that the most recent fiscal year reflected the lowest number of bankruptcies filed in a decade. At the same time, the figures suggest that the decline in bankruptcy filing rates was the lowest since 2011.
Minnesota residents who have substantial debt but do not do not qualify for Chapter 13 bankruptcy due to its debt limits may soon become eligible if some bankruptcy experts get their way. Many legal practitioners support a statement made by a bankruptcy judge at a meeting of the American Bankruptcy Institute Commission on Consumer Bankruptcy who stated that the debt limits for Chapter 13 should be modified or removed.
Massachusetts consumers who have substantial financial obligations have some options when it comes to resolving their situation. One of them could be debt consolidation. With this method, people can convert their debts with high interest into a single, manageable payment with low interest. It is a personal finance method that allows them to lower and reorganize their debt.
Massachusetts residents who are struggling to pay off their credit card debts may be having problems because they don't know the root cause of the debt. For many, a job loss or surprise expenses were the reason. However, it is likely that the debt could have been avoided if an individual had an emergency fund. Those who are struggling with credit card debt are urged to stop using their card while they pay off existing balances.
Only a few people in Massachusetts who have medical debt will be affected by a reform in reporting this debt to credit bureaus. Under the new regulations, which go into place on Sept. 15, before debt appears on a person's credit report, there will be a waiting period of 180 days. Furthermore, if health insurers pay medical collections, those debts will be deleted from the report.
Massachusetts residents may be able to either discharge or restructure debt by filing for bankruptcy. It will either be considered as a liquidation or a reorganization, and bankruptcy laws that are created by Congress apply to everyone in the country. The cost of filing for bankruptcy depends on the type of protection sought as well as whether an individual chooses to hire an attorney.
Financial problems could strike almost anyone in Massachusetts after a job loss, death in the family or medical emergency. When debts become impossible to pay, people might turn to debt settlement. Debt settlement generally involves contracting with a company that will attempt to resolve debts with a lump sum payment of less than the total amount that is due.
New rules for consumer bankruptcies will apply to debtors in Massachusetts and nationwide effective Dec. 1, 2017. In April, the Chief Justice of the United States delivered a set of proposed amendments for review by lawmakers. The amendments intend to establish consistent deadline rules for creditors responding to bankruptcy filings.
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.
Money problems are not a unique feature of life these days. Many individuals and families in Massachusetts suddenly find themselves in a lurch. All it might take is a serious accident, or unexpected job loss. The need for debt relief can crop up in a flash.