Category Archives: Chapter 7 Bankruptcy
Did you know that 8 percent of bankruptcy filers are aged 65 or older? This number has been trending upwards since 2008. One reason was the recession, which hit the elderly age group hard. And in some states, creditors are allowed to garnish up to 25 percent of a debtor’s disposable income, so bankruptcy can become an attractive option for people who fall behind on their bills. But perhaps the most common cause of senior bankruptcy is medical debt. Medical debt is the number one source of personal bankruptcy filings in the U.S. and given the high cost of healthcare for elderly people, it is easy for a debt spiral to drag down the finances of seniors with healthcare needs. According to the Consumer Financial Protection Bureau, debt collection is the most-complained about product or service for consumers over 62. The incessant calls and predatory nature of these companies can…
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The Fyre Festival, as it was advertised, was a two-weekend music festival that was supposed to take place on the island of Great Exuma in the Bahamas. The event was widely promoted by celebrities including Kendall Jenner, Bella Hadid and Emily Ratajkowski. It was organized by Billy McFarland and Ja Rule. Prior to the festival, the showrunners experienced a wide variety of setbacks. And when the guests began to arrive, it was clear that the festival was not going to be the ultra-ritzy, fun getaway they were promised. Now, Fyre Fest LLC has filed for Chapter 7 bankruptcy. Fyre Fest allegedly promised repayments of $530,000 for investors’ investment in the festival. Fyre Fest was supposed to pay by May, but investors never got the money. The Fyre Fest Fiasco Guests paid at least $1,500 each for tickets to the swanky music festival. Advertising for the festival showed private jets, plush…
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Last week, we put out a short list of some of the pros and cons of filing Chapter 7 bankruptcy. Filing bankruptcy is a huge decision and one that will have several financial implications in the years following. But bankruptcy is also a valuable tool for people who are drowning in debts and have no way out. Here are some more of the benefits of Chapter 7 bankruptcy, as well as some of the downsides. Pros and Cons of Chapter 7 Con: It can be almost impossible for someone who files for bankruptcy to get a mortgage, if he or she doesn’t already have one. Pro: There are certain lenders who will loan money to people deemed “bad risks,” so it is not impossible. Difficult? Yes. But it can be done. Con: You cannot discharge things like child support, (most) student debt, recent back taxes or spousal support in bankruptcy….
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