If you are at the end of your wits in Nashua with your credit card and medical debts, you may be contemplating bankruptcy. On the surface it appears to the answer to your financial problems. But you might find yourself procrastinating on filing because you are not entirely sure if it is the right solution.
Americans know all about debt. In fact, a fair portion of the country's political discourse revolves around it fairly continuously due to the national preference for credit. That preference is not necessarily a bad thing, and in a healthy economy, debt can even drive growth for a time. When wages stagnate and costs do not, though, debt creates problems because it becomes necessary for short-term functioning, even as it undermines your long-term resources. Health care debt is no exception; in fact, it might actually exemplify this because most people have very little control over the extent of the medical services they will need to remain healthy, so when costs add up, it is easy to wind up in a situation where your medical debt outstrips your income.
New Hampshire residents may have heard about a study released by the Consumer Financial Protection Bureau on March 10. The federal agency claims that around 75 percent of all credit card users are unaware that they are bound to arbitration terms prohibiting them from suing the issuer individually or through a class action in the event of a dispute. In addition, many of those who are aware of those terms do not understand their effect.
Individuals in New Hampshire who are considering filing for bankruptcy may be wondering what happens after the case is completed. Whenever debt is discharged in bankruptcy court, the debtor is no longer legally responsible to repay the debt. However, in some instances, the debtor may wish to voluntarily repay the debt anyways, even though it can no longer be enforced by law.
Many people face mounting credit card and medical debt that can be hard to manage. While both types of obligations may be difficult to handle, medical debt can be troublesome as it is difficult to predict and control.
New Hampshire residents who are in debt may look to credit counseling companies or debt settlement agencies to help them work through what they owe. The two appear to be similar, but the way that they work to achieve the goal of getting someone out of debt is different. This may be an important difference depending on someone's circumstances.
New Hampshire residents who are behind in credit card or other payments most likely receive multiple calls and letters from debt collectors. Many wonder how to stop the constant attempts at contact, and they may be uncertain of what to do.
For some debtors in New Hampshire who are considering bankruptcy as a possible solution to overcoming unmanageable debt, Chapter 13 debt reorganization may be a viable option. In Chapter 13 bankruptcy, the debtor enters a repayment plan lasting between three and five years, during which time he or she will be required to make all scheduled payments to the estate. At the estate's close, the remaining unsecured debts will then be discharged.
When a borrower is unable to make a credit card payment, it is possible that the issuer could seek a wage garnishment or seek a lien on certain property. However, creditors cannot do so on their own. Instead, a creditor must first obtain a judgment and then seek a court order asking permission to garnish wages or place a lien on property. If a garnishment is granted, the law states that a maximum of 25 percent of wages can be garnished each pay period.
If a New Hampshire homeowner is in a grim financial situation that might lead to a home foreclosure, a variety of methods can be followed to avoid such an outcome. Because each method requires different resources and actions, homeowners should take their time and consider consulting a professional before making a final decision.