Unpaid medical bills often get reported to credit rating agencies, and they can seriously affect credit scores. While the uninsured are impacted by these bills more than other groups, more than a quarter of insured individuals and families encounter surprise medical bills that end up going on their credit reports. According to Consumer Reports, there are some things people can do to protect their scores when they encounter a bill.
The number of consumers in Florida and around the country who are finding it difficult or impossible to make their minimum monthly credit card payments is worrying economists. The delinquency rate on this type of debt in the United States has risen from 2.12 percent to 2.47 percent in just two years according to the Federal Reserve Bank of St. Louis, and many experts expect it to continue rising in the months ahead despite a thriving economy and low unemployment figures.
When people in Florida face a growing pile of debt due to credit card bills, medical bills, loans and other issues, bankruptcy can offer a way toward a renewed financial future. At the same time, despite the potential of bankruptcy filings to protect people's financial futures, they may be hesitant to file as soon as it is feasible. Many individuals attribute a sense of economic failure or social shame to filing for bankruptcy, and they may wait for a long time - even years - to file as a result. However, the effects of such a delayed filing can be significantly detrimental to the financial future that can be achieved through a bankruptcy filing.
The Fair Credit Reporting Act allows credit agencies to list bankruptcies of any kind for up to 10 years. However, the major credit agencies only list a Chapter 13 case for seven years. Florida consumers who are concerned about the impact of a bankruptcy on their credit report should know that its impact fades over time. This can be done by paying bills in a timely manner and not obtaining new debt.
Some Florida families may be among the households throughout the country that owe an average non-mortgage debt of more than $24,000. The credit reporting agency Experian also found that in 2017, people's average mortgage debt was over $200,000. On average, people owed more than $6,300 on their credit cards and $1,841 on retail cards. The average student loan debt set a new record at $34,144.
Credit card debt may have risen over the last year for some people in Florida. A study by WalletHub found that in 2017, credit card debt nationwide rose by $92.2 billion and reached its highest levels since before the Great Recession in 2007. Much of that increase happened in the final quarter of the year when the additional $67.6 billion in debt represented the highest increase in a single quarter in 30 years. The Federal Reserve estimates that the total national credit card debt is around $1 trillion.
In the board game Monopoly, bankruptcy generally means that the player is out of the game. There is no starting over. That's a game.
The cost of a college education in the United States is very high, and continuously on the rise. As costs go up, so do the amount of loans that students.
As most Americans know, the economy is in constant flux, going up and down with more severe rises and falls that come with greater risk. While much of the country has recovered from the 2008 recession, there are signs that people are again building up debt, perhaps at unsustainable levels.
You filed for Chapter 11 bankruptcy in order to keep your creditors at bay while you reorganize your business and straighten out your finances. Now, you feel as though the trustee overseeing your case treats you as though he or she does not trust you. Understanding the duties of the trustee might make it easier to bear the scrutiny.