The president signed the Small Business Reorganization Act (SBRA) in August of 2019, but it officially takes effect in February of 2020. Congress designed this popular law to fill a previous gap by providing small businesses and owners with a way to restructure or reorganize in bankruptcy court. Chapter 11 was generally designed for multi-million-dollar companies with staff, and Chapter 13 restructuring could be used by sole proprietors because individuals qualified for Chapter 13. However, Chapter 11 was not always a viable alternative for small businesses that were partnerships, LLC, corporations, or another type of business structure.
Most of us are excited at the prospect of getting a tax refund and will dream of how to spend that money. But while it is fun to contemplate a spring break trip or simply blowing it on fun stuff, it is essential to remember that the IRS is giving taxpayers back money because they overpaid.
Anyone who faces bankruptcy or has already filed understands how hard it is. It starts with some difficult decisions and then there is a follow-through that demands sacrifices (financial and otherwise) before a person rebuilds their credit rating. One modern breakthrough that makes the process more manageable is an assortment of excellent budget apps that users can download on their smartphones or computers.
Any person burdened by crippling debt faces many difficult challenges, but some look at it as an illness that never completely goes away. Like an illness, debt can come with many side effects that can even manifest themselves in physical pain and suffering as well as an endless variety of mental health issues
Many predicted that the president’s trade war with China would impact U.S. farmers and ranchers. Now according to a new report, this is happening as the impasse continues. The number of farmers and ranchers filing bankruptcy since the spring of 2018 has jumped by 13% across the board to include farms of all sizes and types. All told, 13,000 farms disappeared in 2018 because owners could not make payments.
Statistics show three out of every four people will die in debt, and credit card bills don't go away just because a person dies. In some cases, those debts can be passed along to a deceased person's loved ones here in Texas.
There are a few ways where individuals can get their student loans discharged in bankruptcy, but typically people are stuck paying them. According to a recent study, 45 million Americans have student loans that amount to $1.6 trillion. It is important to remember that not all debt is created equal, with some struggling more than others to make their payments.
Many who file for bankruptcy know that they are doing the right thing, but they likely still have mixed emotions about it. Nevertheless, they are hardly alone -- there were 767,721 bankruptcies filed by non-businesses in 2017.
The Supreme Court of the United States recently unanimously ruled in Taggart v. Lorenzen that creditors could be held accountable if they continue to harass those who have had their debt discharged through bankruptcy.
Medical debt is one of the biggest causes of bankruptcy in the U.S., so it is no surprise that debt collectors commonly attempt to collect millions of outstanding bills. Unfortunately, the public interest group reports that some of these businesses are using aggressive tactics in an attempt to collect debts, sometimes from the wrong customers. In the latter case, this erroneously puts an individual’s credit at risk. The organization reviewed 17,701 medical collection complaints submitted to the Consumer Financial Protection Bureau (CFPB) reveal that problems with medical collection are widespread.