A lot of people do not realize how many steps there are in the bankruptcy process. One often overlooked element of a Chapter 7 bankruptcy filing is a personal financial management course, which is required before someone is eligible to have their unsecured debts discharged. This course is intended to help people get the right systems in place to help them manage their money more effectively in the future so that they can avoid getting into overwhelming debt after their current burdens are discharged.
Some of the country’s largest banks have announced an end to a controversial lending practice known as deposit-advance loans. The deposit advance loans have been compared to payday loans, which are short-term, high interest loans often utilized by borrowers with poor credit or limited other options for securing extra funds. The deposit-advance loans have been criticized as predatory by consumer rights advocates, leading the banks to proactively stop offering them before federal regulatory pressures required it.
As some readers are already aware, medical debt is one of the leading factors for individuals who decide to declare bankruptcy. Medical debt nearly always appears by surprise and when one is suffering from a serious injury or illness, it is hard to get back to work to start making payments on that debt.
A judge overseeing the bankruptcy process of discount clothing retailer Loehmann's has approved the sale of the company's inventory. Liquidators already bid on the inventory at an auction and the winner offered to pay 29.8 percent of the total value of the inventory, which is estimated to be worth about $51 million.
A young woman who had taken out substantial student loans was suddenly diagnosed with pancreatic cancer. She survived the potentially fatal disease and was recovering when medical bills and past-due loan payments began to pile up, causing the young woman to attempt to seek bankruptcy relief. This is difficult to do, since student loans are typically not forgiven through bankruptcy unless undue hardship is shown. It is so difficult that only a few hundred people even attempt to seek relief from student loans this way each year.