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June 2014 Archives

The two types of consumer bankruptcy

Arkansas residents who are thinking about filing for bankruptcy should understand the different types that are available to individuals and how they can help a debtor obtain debt relief. For those who have medical bills or are behind on credit card payments, it may be possible to have those unsecured debts discharged through Chapter 7 bankruptcy. To be eligible to file for Chapter 7, the individual must be able to pass a means test and an income test and go to credit counseling.

Drawbacks of using credit cards

As credit card debt increases for many Americans, Arkansas residents may be interested in some of the drawbacks of allowing balances to mount. Credit card companies give customers disclosures that talk about financial terms and give many numbers. However, they do not disclose the side effects of relying on credit cards to make purchases or carrying a balance from one month to the next.

Debt-buyers may file suit against the wrong people

Arkansas Residents may be interested in a recent report that suggests that there has been an increase in debt-related lawsuits filed against individuals who are not liable for the balance. Debt-buying companies, who purchase liabilities from credit card companies after they have written off the accounts, file many of these lawsuits, and the Center for Responsible Lending reports that these debt-buying companies have doubled their income since 2009.

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