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.
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.
When seeking debt relief, it is important to understand that there is a difference between the filing date of bankruptcy and the date that the debt is discharged. For those seeking Chapter 7 bankruptcy, the debt is generally discharged four months after paperwork is filled out and the bankruptcy is approved. For those who seek Chapter 13 bankruptcy or must use Chapter 13 because they are not eligible for Chapter 7, it may take as many as five years for a debt to be discharged.
Medical debt can cause financial hardship as well as lower the credit scores of New Hampshire residents who are unable to pay back that medical debt. In some cases, those who otherwise pay their bills are penalized due to what could have been an error on the part of a hospital or insurance company.
New Hampshire residents who are struggling with debt should be aware of a practice that appears to have grown substantially among debt collection agencies in recent years. This disturbing trend involves filing lawsuits against debtors with what experts believe is often a presumption that the debtors will never appear in court. Many consumers have reported to attorneys that they have been sued and received default judgments that froze their bank accounts, garnished their wages and set liens on their homes without ever having received notice that legal actions were in progress.
New Hampshire residents may be aware that the activities of debt collection companies are sometimes questionable. The tactics these organizations employ can border on harassment, and putting an end to such behavior is one of the reasons that people consider filing for bankruptcy. However, sometimes the individual being targeted by a collection agency does not even owe the debt.
Several years ago, the horror movie “When a Stranger Calls” was released. Have you ever received a phone call or a letter from someone who says you owe them money for a debt, but you’ve never even heard of the company calling? That is likely because the original debt, if it even was your debt, has been sold to a company that buys debts for pennies on the dollar. The debt could have been credit card charges, medical debt or even student loans.
For a long time, anyone in Rockingham County who was underwater in debt could use bankruptcy as a way to free themselves of debt and start afresh. Although there are still many people and businesses that file for bankruptcy in New Hampshire every year, the number of people who have filed since 2010 has been steadily declining. While many people may see a fall in the number of people filing for bankruptcy as a sign of our country's improving economic health, that is not necessarily wholly accurate.
While the holiday season has certainly become a season of giving, at what point should people opt for saving money instead of buying gifts? That is a question that only each individual can answer for him- or herself. It is worth noting, however, that a poll of parents found that more than half of them were planning on going into debt just to buy presents for their children. It is highly likely that there are parents in Salem who are waking up to substantial credit card debt now that Christmas is over.
Going to college is a goal that many people have from a young age. People believe that going to college and getting a degree will give them a huge advantage when they enter the workplace. Salaries are supposed to be higher and jobs are supposed to be more attainable. But the truth is that a poor economy combined with rising college tuition costs has put many graduates at a significant financial disadvantage.